[12][13] The unit released a short under the WDTA name in 1997, Redux Riding Hood, which was nominated for a 1998 Academy Award.

[8] Ellen Gurney was promoted from director of DTV films, theatrical movies and specials to vice president in April 1999.

[9] On July 25, 2005, Disney announced that it was closing Disneytoon Studios Australia in October 2006 after 17 years of existence, with its final feature being Cinderella III: A Twist in Time (2007).

[19] John Lasseter joined Disney with the purchase of Pixar in 2006, and made it known that he disliked Disneytoon's sequels and prequels, as he felt that they were undercutting the value of the original feature films.

Following complications relating to the production of Tinker Bell (2008), the debut film of DCP's Fairies franchise, it led to discussions over the focus of the division.

As chief creative officer, Lasseter called for the cancellation of all future films in production or development at Disneytoon Studios.

As a result, planned or in-progress sequels to Pinocchio (1940), Dumbo (1941), The Aristocats (1970), Chicken Little (2005), and Meet the Robinsons (2007) were all cancelled, among other projects.

[20] Thus DTS halted production of sequels and prequels when it originally indicated that the division would shift to support various Playhouse Disney franchises with direct-to-videos.

[20] Meredith Roberts transferred from Walt Disney Television Animation to senior vice president and general manager of Disneytoon Studios in January 2008.

[23][24][25] On June 8, 2018, it was announced that Lasseter would leave Disney Animation and Pixar at the end of the year, but would take on a consulting role until then.