The film was originally produced in 1988 under the title "Snow White in the Land of Doom." Disney sued, fearing consumers would mistake it for a direct sequel to Snow White and the Seven Dwarfs (1937). It prompted a title change and several drastic alterations to the film's content.
In 1990, the cosmetics company L'Oreal, which had just purchased what was left of Filmation, licensed the movie to First National Film Corporation for a June theatrical release. A dispute between the two companies, however, would delay its public exhibition for another three years.
Three years before opening, the film was test-marketed in the Long Island market as "Snow White: Happily Ever After". The test was unsuccessful and the film remained on the shelf before being reissued under its current title.
In early 1985, Filmation announced plans to produce a series of 13 animated films under the umbrella title of "Filmation's New Classics Collection." They were to be feature-length stories to be distributed in theaters, on video and then sold for television broadcast and possible spin-off series. The titles were: "The New Adventures of Pinnocchio", "Snow White and the Seven Dwarfelles", "The Challenge of Cinderella", "Time Machine II: The Man Who Saved the Future", "Bambi: Prince of the Forest". "20 Million Leagues Across the Universe", "Frankenstein Lives Again!", "The Further Adventures of Gulliver", "The son of Sleeping Beauty", "L. Frank Baum's The Life and Adventures of Santa Claus", "The Continuing Adventures of the Jungle Book", "New Tales of Arabian Nights" and "Alice Returns to Wonderland". The Walt Disney company sued Filmation before production had even started for proposing to make sequels to their classic films and in the end, only the first two titles saw production, as Pinocchio and the Emperor of the Night (1987) and Happily Ever After.
The video went on moratorium 25 October 1996.
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