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Film and TV earned $2.2 million
Parks outgrow film
Disney's revenue grew from $100 million in 1965 to $1.4 billion in 1984, and net income from $11 million to $97 million. In 1972, the first year of Disney World, the picture had been more balanced: films earned $44 million in profit, parks $38 million, and the rest of the flywheel businesses $13 million. By 1984, the parks and consumer products had grown past a billion dollars in revenue while film and TV barely broke even.
Animation fades
Disney animation had shrunk from a staff of roughly 500 at Walt's death to 125 by the early 1980s. Lucas and Spielberg had become the new American storytellers. The Black Cauldron spent about ten years in development and production, was released in 1985 as a flop, and was the first Disney animated film rated PG.
The raiders
In 1984, corporate raiders came for Disney. Its market cap was only about $2 billion against $1.5 billion in revenue and roughly $100 million in net income, and it held parks, real estate, and a vault of old films that could be sold off in pieces. Saul Steinberg tried to raid the company and break it up.
How did Disney fend off Steinberg?
In 1984 Disney bought back Steinberg's stake at a premium to the market price. The tactic is known as greenmail. The payment cost the company hundreds of millions of dollars. New management under Michael Eisner and Frank Wells arrived that fall.
How did Eisner revive animation?
Eisner and Jeffrey Katzenberg pushed the studio to make musicals with theatrical songs. The Little Mermaid in 1989 started a run of hits later called the Disney Renaissance. Beauty and the Beast in 1991 became the first animated film nominated for the Best Picture Oscar. The Lion King followed in 1994.
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