Disney classic ‘toons won’t get DVD sequels

Walt Disney Co. is singing a new ‘toon, no longer making DVD sequels to its classic animated films.

The change in direction reflects the philosophical imprint of John Lasseter and Ed Catmull, who took control of Disney’s struggling animation operation last year after the company bought Pixar Animation Studios for $7.4 billion.

Lasseter and Catmull, who helped make Pixar into the industry’s premier computer animation studio, generally dislike direct-to-video sequels because the quality of the stories and production usually pales in comparison with the originals.

The strategy is part of a larger revamping of Disney’s direct-to-video operation. DisneyToon Studios will once again be overseen by the feature animation division Lasseter and Catmull now head. DisneyToon also recently moved off the Burbank lot into its own facility in Glendale.

Disney for years has been cranking out relatively inexpensive videocassette and DVD sequels to many of its best-known animated films, including new chapters of “The Lion King,” “Beauty and the Beast,” “Cinderella,” “Bambi” and “Aladdin.” Disney had a reputation for being one of the biggest spenders on direct-to-video releases.

The straight-to-video business proved to be a cash cow for studios such as Disney and Universal Pictures, which made a mint with its lucrative “The Land Before Time” franchise. Movies made expressly for DVDs are produced at much less expense than large-scale theatrical releases that require costly outlays for talent and production.

But the business has become less lucrative as development, production and marketing costs have risen and the DVD market has become flooded with titles, including boxed sets of popular TV shows such as “The Sopranos,” “Lost,” “24” and “Desperate Housewives.” Last year Warner Bros. jumped into the fray, but it promised to keep a lid of $5 million or less on budgets.

Pixar’s brass, notably former Chief Executive Steve Jobs, had long soured on DVD sequels. Jobs was especially critical of Disney and former CEO Michael Eisner for making what he viewed as thin, exploitative sequels, once calling “Lion King 1 1/2 “ and the “Return to Neverland” Peter Pan sequel “pretty embarrassing.”

Pixar made its mark with original theatrical blockbusters such as “Finding Nemo,” “Monsters, Inc.” and “The Incredibles.” Its newest feature, “Ratatouille,” debuts Friday.

The company has released only one sequel, 1999’s “Toy Story 2,” which was an even bigger box-office smash than its predecessor. The film was originally conceived as a direct-to-video title, but Lasseter and others at Pixar concluded it would be better off as a theatrical release. Pixar is planning a “Toy Story 3.”

Disney’s restructured direct-to-DVD group, which employs 135 artists, production staff and managers, will report to Lasseter and Catmull, who are chief creative officer and president, respectively, of Walt Disney Animation Studios.

Previously, the unit reported to Walt Disney Studios President Alan Bergman. The president of DisneyToons, Sharon Morrill, a 15-year veteran of the studio, is being moved out and will be replaced by a yet-to-be-chosen executive. Disney said Morrill would be reassigned to duties that would include working on special projects.

“John and I are truly excited to be working with the talented team at DisneyToon Studios in developing and producing original stories for the home entertainment audience,” Catmull said in a statement.

The first DVD to be released, in the works before the revamping, is part of a planned movie series featuring Tinker Bell and new fairy characters.

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claudia.eller@latimes.com