The Big Picture Today, Disney may be cashing in its largest checks for Marvel and Star Wars projects, but the company's primary claim to fame has long been animation.
At the same time, however, Disney MovieToons was also going under the name Disney Video Premieres, a more apt title for the bulk of its films. The subsidiary's sophomore project was The Return of Jafar, an Aladdin sequel meant to kick off a television series based on the eponymous character.
What Killed Disneytoon Studios? During this time, the world of animation, entertainment, and Disney itself was changing. Disney closed several of its overseas animation divisions, and evolutions in leadership led to various reevaluations of Disneytoon Studios' purpose within the company. John Lasseter became Chief Creative Officer of Walt Disney Animation Studios in 2006 and creative oversight of Disneytoon went from Sharon Morrill to Disney Studios president Alan Bergman.
Then, during the 2010s, the VHS market disappeared and the DVD market started to wane. Streaming overtook home video, and Disneytoon's direct-to-video approach became less relevant or profitable. The studio's final five films actually had theatrical releases, but despite having more movies slated for development, Disneytoon released its final project in 2015 with Tinker Bell and the Legend of the NeverBeast.