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As Disney celebrates its 100th anniversary, the entertainment giant finds itself at a critical juncture. Investors are growing concerned that the company, which has been an emblem of innovation for a century, is showing signs of aging. The share price has plummeted to its lowest level in almost nine years, raising questions about Disney’s ability to navigate the challenges of the streaming era.
However, adapting to changing times is not a new test for Disney. Throughout its history, the company has repeatedly faced and conquered such challenges.
A century ago, when “Disney” referred to a single person rather than a global behemoth valued at over $150 billion, the emergence of sound and color technologies disrupted the silent film industry. Walt Disney, the visionary behind the company, recognized the potential of these innovations to captivate audiences.
“He wanted his animation to be believable, to transcend what we typically think of as animation,” noted Chris Pallant, a professor of animation and screen studies at Canterbury Christ Church University in the United Kingdom.
In 1923, Disney Studios opened its doors in Hollywood, far removed from the animation hubs of New York. Walt Disney envisioned a future where animated features would command the same respect as live-action films. He was relentless in his pursuit of quality, pouring resources into producing cartoons that resonated with audiences. He believed that grounding animation in reality was essential to infuse sincerity into the medium.
The studio formalized 12 principles of animation, transforming static sketches into vibrant characters on screen. Seasoned animators passed these principles on to newcomers, ensuring consistency in Disney’s productions.
Walt Disney entered the animation industry as a young entrepreneur who was well-positioned to harness existing techniques and embrace new tools. He and his studio harnessed sound, color, and 3D camera technology, adopting an organized and scalable approach that, while not always cost-effective, consistently produced high-quality animations.
With each financial success, Disney used the proceeds to fuel his ambitions for the next project. In this way, he survived his own ambition.
For decades, Disney Studios dominated Western animation through innovation and a commitment to enthralling storytelling. However, a new technology arrived, and Disney was slow to embrace it.
By the turn of the 21st century, Pixar’s computer-generated animations, particularly “Toy Story,” had surpassed Disney’s traditional hand-drawn style. But Disney had a new asset: financial power. Revenue from merchandise, theme parks, and cable TV had enriched the company for years. In 2006, Disney acquired Pixar for $7.4 billion, securing access to Pixar’s enchanting digital animation.
The shift from hand-drawn to computer animation marked a pivotal moment for Disney. “I think that is an echo back to an earlier life,” said Pallant, who also serves as the president of the Society for Animation Studies. “They were not afraid to move with the times. That shows you the willingness to reinvent themselves as a 75- or 80-year-old company.”
Now, as Disney reaches its centennial, the rise of streaming presents a fresh challenge. Disney’s early forays into new technologies yielded quality films that set the studio apart. Embracing computer animation preserved its status as a major player in the animation industry. Today, shareholders eagerly await Disney’s strategy as it ventures into its next century, demonstrating its enduring ability to adapt and innovate.
