Walt Disney with the Richard Nixon family at the 1959 opening of the atomic submarine ride at Disneyland. Photo courtesy of Mark Langer.

In 1959, the largest "atomic" submarine fleet in the world was owned by Walt Disney. While I'm not proposing that a bad day in the Magic Kingdom might have resulted in nuclear Armageddon, the Disney fleet is an historical fact that stems from the cooperation among Disney's business empire, major American arms manufacturers and the U.S. government.

Disney had long established relationships with the federal government dating back to the early 1940s. In a sense, Walt Disney went to war before America did, producing war shorts on contract for the National Film Board of Canada and military production films for Lockheed Aircraft. Days after the Japanese bombing of Pearl Harbor, Walt Disney was in Washington meeting with top government officials. The result of these meetings was The New Spirit(1942), an animated film made to encourage citizens to pay "taxes to smash the Axis." This began a close relationship between Disney and the U.S. government in the production of films for propaganda, training, and educational purposes. These films not only served the needs of the government in wartime, they added over two and a half million dollars to the Disney studio's coffers in the first year of the war alone.

Getting Through the Slump
In 1941, Disney was asked to go on a goodwill tour of Latin and South America by the Office of the Coordinator of Inter-American Affairs. The U.S. government was concerned about Axis influence in this part of the world, while Disney and the motion picture industry were interested in developing new markets for their product since the war had cut off traditional export areas in Europe and Asia. Patriotism and good business were intermeshed by the complimentary interests of government and the film industry.

With the end of the war, came a slump in the animation industry. Rising costs of production made animated film, always a marginal enterprise, even more so. Disney sought to strengthen his company's financial position through diversification. Walt Disney Productions already had developed reciprocal ventures with other companies that dated back to the early 1930s, when Disney licensed his characters to corporations like the Lionel Train Company and the Ingersoll Watch Company (now Timex) to produce Mickey Mouse handcars and watches. Mickey Mouse comic strips and a lucrative contract with the Western Printing and Lithographing Company (publishers of the Little Golden Books) were other major sources of income.

Building on this, Disney first moved into live-action films which were more cheaply produced than their animated counterparts. On Christmas Day of 1950, the first Disney television program was aired -- One Hour In Wonderland -- which was a promotion for the upcoming animated theatrical feature Alice In Wonderland (1951). The special reached twenty million viewers, which was a phenomenal number for early television. This not only pleased the sponsor, Coca-Cola, but made a deep impression on Disney executives. At the time, Walt's brother Roy Disney remarked that One Hour In Wonderland "leads us to believe that television can be a most powerful selling aid for us, as well as a source of revenue. It will probably be on this premise that we enter television when we do."

When Disney did enter television, it was part of a move that further diversified Disney's business interests. Disney agreed to produce the "Disneyland" television series for ABC, if the network's parent company would join Disney and Western Publishing as the major investors in the new Disneyland theme park. The television show, amusement park, publishing interests, and movies would all promote each other in a synergistic relationship. By establishing interlocking business relationships with allied companies, Disney was able to create interlocking systems of promotion among different media.