Fleischer Studios' efforts to emulate the Disney studio culminated in the production of animated feature films, following the success of Disney's Snow White and the Seven Dwarfs (1937). Paramount loaned Fleischer the money for a larger studio, which was built in Miami, Florida to take advantage of tax breaks and to break up union activity resulting from a bitter 1937 strike. The new Fleischer studio opened in October 1938, and production on the first feature, Gulliver's Travels, went from the development stage into active production.

Upon its Christmas 1939 release, Gulliver had a decent showing at the box office, although the quality of the story and animation was far behind that of the film it tried to emulate, Snow White. Between the release of Gulliver and the follow-up feature Mr. Bug Goes to Town (1941), the Fleischers produced their best work from this period, a series of high quality shorts based upon the comic book superhero Superman.^[1] The first short in the series, simply titled Superman, had a budget of $50,000,^[1] the highest ever for a Fleischer theatrical short, and was nominated for an Academy Award.

However, this late success did not help the studio lift its financial trouble. The expanded staff of the new Miami studio created a high overhead, necessitating steady production. A number of the shorts turned out during this period, such as the continuing Popeye shorts and a 1941 two-reel adaptation of Raggedy Ann and Andy, maintained a high level of quality. Others, like the Stone Age shorts, and the various Gulliver spin-off series, were among the studio's least successful output.