Toei Animation and Mushi Production

In 1948, Toei Animation was founded and produced the first color anime feature film in 1958, Hakujaden (The Tale of the White Serpent, 1958). This film was more Disney in tone than modern anime with musical numbers and animal sidekicks. However, it is widely considered to be the first "anime" ever, in the modern sense. It was released in the US in 1961 as Panda and the Magic Serpent. From 1958 to the mid-1960s, Toei continued to release these Disney-like films and eventually also produced three of the most well known anime series, Dragon Ball in 1986, Sailor Moon in 1992 and One Piece in 1999.

Toei's style was also characterized by an emphasis on each animator bringing his own ideas to the production. The most extreme example of this is Isao Takahata's film Hols: Prince of the Sun (1968). Hols is often seen as the first major break from the normal anime style and the beginning of a later movement of "auteuristic" or "progressive anime" which would eventually involve directors such as Hayao Miyazaki (creator of Spirited Away) and Mamoru Oshii.

A major contribution of Toei's style to modern anime was the development of the "money shot". This cost-cutting method of animation allows for emphasis to be placed on important shots by animating them with more detail than the rest of the work (which would often be limited animation). Toei animator Yasuo Ōtsuka began to experiment with this style and developed it further as he went into television. In the 1980s Toei would later lend its talent to companies like Sunbow Productions, Marvel Productions, DiC Entertainment, Murakami-Wolf-Swenson, Ruby Spears and Hanna Barbera with producing several animated cartoons for America during this period. Other studios like TMS Entertainment, were also being used in the 80's, which lead to Asian studios being used more often to animate foreign productions, but the companies involved still produced anime for their native Japan.

Osamu Tezuka established Mushi Production in 1961, after Tezuka's contract with Toei Animation expired. The studio pioneered TV animation in Japan, and was responsible for successful TV series such as Astro Boy, Kimba the White Lion, Gokū no Daibōken and Princess Knight.