A Short History of Disney Merchandising

Everything you didn’t want to know about the entertainment giant

Renee Bugden
The Wonderful World of Disney
5 min readMay 3, 2019

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Image credit: Travis Gergen, Unsplash

Walt Disney was a shrewd businessman. When Oswald the Lucky Rabbit was discarded in favour of Mickey Mouse, Walt began to see possibilities the world had never dreamed of.

Once Mickey Mouse was created, Walt envisioned a world where every child and child-at-heart would know (and love) this character. Here was the key to opening a literal Disney World… but the problem was money.

Walt Disney optioned the licence to put Mickey Mouse on everyday things. It was the beginning of merchandise. These days, most new blockbuster films have an accompanying book, toy or website to help promote the movie and allow the viewer to take home a piece of the magic. But Walt Disney, he was among the first.

(Let’s sidetrack just a moment. The rise of the blockbuster film can be traced back to 1977 with the release of Star Wars and Jaws. These two films began the era we now take for granted, where merchandise promoting films often hits shelves months before the actual release of the film.)

Mickey Mouse’s image first appeared on a children’s slate board in 1923. Children could take this new character to school with them. And they loved it. Hundreds were sold, thus beginning one of the most successful merchandising businesses in history.

As Walt expanded his portfolio of characters, he licenced them to different outlets in order to gain more funds to pay his rent, pay his animation team, and to keep creating. Soon, one was able to buy Goofy orange juice and Donald Duck bread. It was a chance for the public to take their beloved characters home, and it was a way for Walt and his crew to keep doing what they loved to do.

Disney’s Film Era

Disney’s first full-length animated film, Snow White and the Seven Dwarfs, in 1939, also came with its own merchandise. This film was the first of its kind to offer merchandise: even though prior films sometimes had their own sheet music, Snow White also had toy boxes decorated with characters from the film as well as collectible Snow White dolls. In this way, this groundbreaking film paved the path for later films to merchandise their own materials.

During the Second World War, many animation studios closed due to lack of funding. However, the Disney Studio made a deal with the US government to create propaganda supporting the war efforts. Some of these films are still available on YouTube. This paid deal ensured Walt and his team could continue to create character animations as well as animated propaganda. These war cartoons are cringe-worthy now, so it’s worth remembering that every piece of media is a product of its time, including those paid for by the US government.

Image credit: Jayme McColgan, Unsplash

After the war, Disney was free to continue concentrating on films. Each film was promoted with merchandise: usually sheet music and toys. The revenue from these merchandising licences helped Walt to realise his biggest dream: to create a land where people could experience the magic as much as they wanted.

Walt Disney designed Disneyland, and envisioned another Park on the US east coast. Sadly, he died before Walt Disney World was completed. (And no, he’s not cryogenically frozen.)

Home Media

The rise of home video in the 1980s dictated a new wave of revenue for Disney. This resulted in the re-release of many classic Disney films both in the cinema and on home video. Cleverly, Disney also “locked” classic films in the “vault”, only releasing certain films on home media for a limited time. The scheme worked: people who had seen original versions of the films now wanted to share the magic with their children, and flocked to stores to buy classic films on video.

In another attempt to take advantage of the home video market, Disney also created direct-to-video sequels of some of their films. Films such as Bambi and Cinderella spawned sequels, while the Disney Renaissance of the 1990s spawned even more sequels. Aladdin, The Lion King and The Little Mermaid were just some of the 90s films which spawned direct-to-video sequels.

Sometimes, Disney went a bit further to promote their films. Hercules was the theme for a parade through New York, with Olympian Bruce Jenner one of the celebrities appearing in the parade. Hercules itself spawned over 7000 pieces of merchandise.

Frozen: The little movie that could

Image credit: Jelleke Vanooteghem, Unsplash

Let’s talk about the elephant in the room (not Dumbo).

Once animation became computerised, it also became more cost effective, and quicker to produce. The Disney company also decided not to waste time or money on direct-to-video sequels, rather, they’d release two new films per year (give or take). This decision was also influenced by the rise of other animation studios, who were also churning out high quality content for a hungry audience. One film was supposed to be a filler, something to tide over the company til their Big Release, usually during the US summer.

Frozen was one such “filler” film. It had been plagued by setbacks for some time, and had been re-written several times. It was destined to be a minor release, quickly forgotten.

The adoring public had other ideas. They loved the film, and within 9 months, associated merchandise was in danger of selling out in every store all over the world. Quickly, Disney sold more licensing rights to anyone interested in creating a Frozen branded item. Whereas Hercules had over 7000 merchandising items, Frozen is approaching 100,000; even 6 years after its initial release, merchandising is still strong for this brand. Everything from dolls to clothes, breakfast cereals to car air fresheners, packaged fruits to candy has been branded with Anna and Elsa. It is impossible to walk into a supermarket and not see a Frozen branded product.

There was no longer any doubt that Frozen was a forgettable film. While parents all over the world were being driven crazy with repeated performances of Let It Go, the Disney Company were rubbing their hands with glee. Almost single-handedly, the film had provided a massive income boost.

Today, the Disney Company control several entertainment franchises, including ESPN, ABC (America) and Marvel. They are a powerful network… and it all started with the image of a Mouse on a chalk slate.

References

Wasko, Janet 2001 Understanding Disney: The Manufacture of Fantasy Polity Press, New York.

Wyatt, Justin 1994 High Concept Movies and Marketing in Hollywood University of Texas Press, Texas

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