Buena Vista Internet Group
| Company type | Division |
|---|---|
| Industry | Video games, online media |
| Founded | 1995 |
| Headquarters | United States |
Area served | Worldwide |
Key people | Jimmy Pitaro (president) |
| Products | Video games, online content, websites |
| Parent | The Walt Disney Company |
Disney Interactive is a United States-based company specializing in video games and online media, overseeing a variety of websites and interactive content owned by The Walt Disney Company.
1995–1996: Establishment and early development
In December 1994, Disney revealed plans to form Disney Interactive, a division dedicated to publishing software for computers and video game console platforms. The initial workforce comprised 200 new hires, with the company officially launching in mid-1995. On August 23, 1995, Disney Interactive introduced Disney Online as part of its strategy to enhance its digital footprint.
1997–2007: Buena Vista Internet Group era
In April 1997, Disney acquired a 33% interest in Starwave for $100 million, later obtaining full ownership by purchasing the remaining shares from Paul Allen in April 1998. In June 1998, Disney traded Starwave along with $70 million to acquire a 43% stake in Infoseek, collaborating to develop the Go Network internet portal. By July 1999, Disney completed the acquisition of Infoseek and consolidated it with Disney Online, ABC News Internet Ventures, ESPN Internet Ventures, and Buena Vista Internet Group under the Go.com brand.
In August 1996, Buena Vista Internet Group secured a controlling stake in toysmart.com and supported it through marketing efforts including complimentary advertising on BVIG platforms. Despite this support, Toysmart.com ceased operations in May 2000 following unsuccessful attempts to secure additional funding.
The Disney Internet Guide was discontinued in June 1999, and the Go.com portal was shut down in 2001 after generating losses amounting to $878 million.
In 2004, Disney relaunched the Starwave brand as Starwave Mobile to develop casual games for mobile devices under both Disney and external brands. The company expanded its mobile gaming capabilities by acquiring German developer Living Mobile in November 2005 and purchasing Enorbus Technologies in 2007 for close to $20 million.
2008–2012: Formation of Disney Interactive Media Group
On June 5, 2008, Disney combined Disney Interactive Studios with the Walt Disney Internet Group to form the Disney Interactive Media Group (DIMG). In 2009, DIMG's Disney Online division acquired several websites from Kaboose.
In July 2010, Disney Interactive broadened its offerings by acquiring Playdom for $563.2 million along with Tapulous’ mobile division. Later that year in October, John Pleasants and James Pitaro were appointed as co-presidents tasked with enhancing profitability.
Early in 2011, DIMG closed Propaganda Games and laid off approximately 200 staff members. Several game studios including Blackrock, Junction Point, Avalanche, Wideload, and Gamestar were reorganized under game development head Alex Seropian. Lane Merrifield, known for co-creating Club Penguin, was assigned to lead a new publishing division focused on children’s and family-oriented games. In February, DIMG acquired Togetherville—a social network aimed at pre-teens—and Rocket Pack, a Finnish developer specializing in plugin-free HTML5 games. Later that year Babble Media Inc., a parenting-focused website, was also brought into the fold.
In October 2011, DIMG strengthened its position in the Indian market by acquiring Indiagames for between $80 million and $100 million.
By April 2012, DIMG introduced three web series targeted at mothers: "Moms of," "That's Fresh," and "Thinking Up." Despite these efforts, by October 2012 the division had reported losses spanning fifteen consecutive quarters totaling roughly $977 million. Following internal disputes, Merrifield departed from the company. Additionally, DIMG announced "Toy Box," a cross-platform gaming initiative combining Pixar and Disney characters across console, mobile, and online formats.
2012–2018: Disney Interactive
In 2012, the Disney Interactive Media Group underwent a rebranding, becoming Disney Interactive (DI). Early in 2013, Avalanche Software, a DI subsidiary, released Disney Infinity, a multi-platform game that combined the "Toy Box" feature from Toy Story 3 with an associated toy collection. That same month, Disney shut down Junction Point Studios.
By the fourth quarter of 2013, Disney Interactive announced a $16 million profit, largely fueled by sales of Disney Infinity and organizational consolidation under a single president. Nevertheless, in March 2014, DI eliminated 700 positions as it merged its mobile and social gaming divisions due to declining interest in Facebook games. The company redirected its efforts from advertising toward sponsorships and licensed game production. Notably profitable areas included its mobile applications in Japan and the Disney Infinity franchise.
On June 29, 2015, Disney Interactive combined forces with Disney Consumer Products to create "Disney Consumer Products and Interactive Media," with DI operating as a direct subdivision. Later that year in December, Maker Studios was brought under DI's management, led by EVP Courtney Holt who reported directly to DI president Jimmy Pitaro.
Amid escalating development expenses and sluggish growth within the toy-to-game sector, Disney discontinued the Disney Infinity series in May 2016, closed Avalanche Software, ceased self-publishing activities, and disclosed a $147 million financial impact resulting from exiting the console gaming market.
In September 2018, Disney revealed plans to close Club Penguin Island alongside significant workforce reductions at its Kelowna facility. Subsequently, in November 2018, Jam City acquired the Glendale-based operations of Disney Interactive Studios, including rights to Emoji Blitz and upcoming titles based on Pixar and Walt Disney Animation properties; employees were offered opportunities to join Jam City.
2018–present: Disney Electronic Content
The publishing responsibilities for various internally developed Disney-branded video games transitioned to Disney Electronic Content. Its debut title was Disney Classic Games: Aladdin and The Lion King, released on October 29, 2019 across multiple platforms and developed by Digital Eclipse. This collection was reissued as Disney Classic Games Collection, which added The Jungle Book games and launched on November 23, 2021.
Following releases included Zombies Ate My Neighbors and its sequel Ghoul Patrol, both arriving on June 29, 2021. Most recently, the platformer Disney Illusion Island, crafted by Dlala Studios, launched exclusively for Nintendo Switch on July 28, 2023.
Units
- Disney Games
- Marvel Games
- Rocket Pack
- StudioEX
- Gamestar
- Disney Online Studios
- Disney Online
- Disney Mobile
- Disney Digital Network (previously Maker Studios), a multi-network YouTube content provider.
Disney Online
Disney Online operates as a division within Disney Interactive responsible for managing the majority of Disney's digital web properties.
Established on August 23, 1995 with Jake Winebaum as president, Disney Online introduced DisneyStore.com in November 1996 followed by family.com in December of the same year. In April 1997, Disney acquired Starwave's Family Planet website and merged it into Family.com. That month also saw the launch of Disney Daily Blast—a subscription-based service aimed at younger users—distributed exclusively through Microsoft Network for ten months.
In 1998, Disney Online launched dig.com, a kid-friendly web directory which was discontinued after one year to concentrate resources on Infoseek/Go Network initiatives. Late in 2007, the Disney Interactive Media Group (DIMG) acquired iParenting Media’s websites. The company divested movies.com to Fandango in June 2008.
In 2008, Take 180 was acquired from Chris Williams who remained as VP and GM of Disney Online Originals until April 2012. The following year DIMG purchased several Kaboose properties—including Kaboose.com and Babyzone.com—integrating them into the Disney Family Network. Additionally in 2009, Kerpoof was acquired by Disney.com.
November 2011 marked DIMG’s expansion of its Mom and Family segment through acquiring Babble Media Inc. However, by March 2014, Disney Interactive laid off approximately one-quarter of its workforce—around 700 employees—and shuttered smaller sites such as BabyZone.com and Spoonful.com to realign focus away from advertising toward sponsorships consistent with Disney’s strategic approach to online experiences.
Online divisions
- disney.com
- Disney Family Network platforms, often referred to as the Mom and Family Portfolio
- Family.Disney.com
- Babble.com, a community for parenting bloggers
- DigiSynd, focused on social media marketing strategies