Unveiling the Untold Story of Disney and Studio Ghibli's Contract Fallout
Discover why Disney and Studio Ghibli's partnership ended unexpectedly What led to the non-renewal of their contract? Explore the terms of their agreement and the success of their collaboration
Disney's partnership with Studio Ghibli in 1996 brought many classic films to a wider audience in America and beyond. With excellent dubbing and promotion from talented animators, the collaboration seemed perfect. However, the partnership came to an end when Disney was replaced as the distribution partner for Studio Ghibli. The question remains: why did the partnership fail to continue?
What was Disney’s Deal with Studio Ghibli?
In 1996, Studio Ghibli signed a distribution deal with Walt Disney for the North American market. The agreement allowed Disney to release Ghibli's films in the United States and Canada, including the distribution of home videos in Japan. Additionally, Disney was responsible for dubbing and subtitling the films, as well as handling their theatrical releases. Some of the films that Disney released under this contract were Princess Mononoke, Kiki’s Delivery Service, My Neighbor Totoro, and Spirited Away, which won the Academy Award for Best Animated Feature in 2003. Notably, Disney enlisted famous actors like Billy Crystal, Christian Bale, and Liam Neeson to voice the characters in the English dubbed versions, with Pixar veterans John Lasseter and Pete Doctor producing many of them.
Terms to Stick to
Disney had a few major demands before approving the deal. Firstly, they insisted on having access to all of the films, not just a select few. Secondly, they required that the films be left intact with a strict 'no cuts' policy. This was due, in part, to Hayao Miyazaki's past experience with having his films dubbed into English. After a disastrous dub of Nausicaa: Valley of the Wind, which featured name changes, twenty minutes of cut footage, and a title change to Warriors of the Wind, Miyazaki refused to allow other companies to dub his films unless they adhered to his high standards.
Terms to Stick to
Disney did eventually agree to distribute Miyazaki's films, but not without some challenges. The English dubs of Kiki's Delivery Service and Princess Mononoke faced criticism for replacing Japanese songs with American ones and attempting to edit the latter into a more family-friendly rating. Despite these initial issues, many fans found the translations to be accurate and Miyazaki himself approved of the final products. In fact, he was so pleased with Disney's work that he extended their contract to include The Wind Rises.
Was the Deal Successful?
There is ongoing discussion about the success of the partnership between Ghibli and Disney. While Ghibli gained a larger audience in North America and Disney added high-quality animated features to their portfolio, there are concerns that Disney did not give Ghibli films the same level of importance as their own films and Pixar movies. Despite Spirited Away winning an Oscar, Disney focused their marketing efforts on Lilo & Stitch and did not sell Ghibli films at The Disney Store. Additionally, after Princess Mononoke's box office failure, Disney rarely released Ghibli films in theaters. This treatment of Ghibli by Disney allowed for a competitor to make a new deal.
Why Did a Contract Renewal Not Happen?
GKIDS, a company specializing in the distribution of international and arthouse animation, made an offer to Studio Ghibli that Disney refused to match. GKIDS not only wanted to distribute all of Ghibli's previous films with new special edition BluRays, but they also promised to keep the importance of these films in the eye of Americans and display them front and center. Ghibli ultimately signed with GKIDS after Disney refused to commit to treating the Ghibli catalog equally to their own films. GKIDS offered something simple yet bold: Studio Ghibli Fest, a yearly theatrical event with Fathom Events featuring a selection of Ghibli films and documentaries shown in theaters. GKIDS even released Ghibli's TV drama Ocean Waves in American cinemas, which even Ghibli themselves didn't do. This month, GKIDS will distribute Spirited Away: Live on Stage in US theaters, which Disney was unlikely to ever do.
GKIDS' commitment to theatrical distribution was the real factor that made a difference in the switch from Disney. Hayao Miyazaki emphasized the importance of the communal experience of watching films in a theater, as it allows people to laugh and cry together. Isao Takahata, co-founder of Studio Ghibli, also shared the sentiment and spoke highly of theatrical distribution.
Watching films in theaters is an unparalleled experience. The power of the medium comes to life in the cinema hall, making it a sacred and ceremonial experience. Toshio Suzuki, the producer, echoes this sentiment, highlighting the importance of the cinema's atmosphere. The collective experience of laughing and crying together with other viewers completes the experience of watching a Miyazaki film.
The importance of their work was diminished with the rise of digital distribution, and all three men were concerned about it. However, GKIDS had a different approach from Disney for Studio Ghibli Fest, as they were committed to putting the Ghibli catalog in theaters to remind people that this is where the films truly shine. Their strategy was so successful that they even convinced the disc owners to make the trip to movie theaters to relive the experience with fellow fans. In contrast, Disney was never going to commit to such an approach, which is likely why Ghibli didn't renew their contract with them. Nonetheless, there is still some collaboration between Studio Ghibli and Disney, as they teamed up to create a Star Wars short featuring Grogu (AKA: Baby Yoda), which is currently exclusive to Disney+.
