On December 5, 1941, Fleischer Studios released through Paramount their second animated film "Mr. Bug Goes To Town".

The film was a major box office bomb, receiving little promotion from Paramount and also opening two days before Pearl Harbor and America's entry into WW2.

This had some serious ripples on American animation. This led to the firing of the Fleischer Brothers, their studio becoming Famous Studios and the notable decline of quality (Famous Studios along with Terrytoons was considered bottom of the barrel for Golden age animation). Also, Walter Lantz, Paul Terry (Terrytoons) and Warner Brothers had been considering doing feature length animated films but the failure of Mr. Bug stopped them dead in their tracks.

Let's say the POD is that somehow Mr. Bug Goes To Town succeeds and/or makes a profit.

1. Would Fleischer Studios have lasted longer? Might we have seen the studio lasting into the 1950s or even the 1960s?

2. Would Walter Lantz Studios, Terrytoons and Warner Brothers make their own feature animated films? How might the quality be against Fleischer and Disney?

3. A longer lasting influence of the Fleischer Brothers and stronger independent animation could have serious effects on Hollywood, the independent film scene, television and maybe even our culture. What could those be?
 
Even if the film was a success, and the Fleischers survived, there would be the second world war. That heavily affected every studio in the industry; even the mighty Disney's plans for Alice in Wonderland and Peter Pan were both delayed to the 1950s as a result. All the other studios would likely delay their plans as well. I don't see the "minor studios" taking the risk of a feature until the 1950s, if they try at all, when Disney and Fleischer are both back at working on full length movies rather than only shorts and package films.

My own timeline has the Fleischers surviving as a result of not even trying features after Disney runs into major economic trouble. I think an environment where everybody is only doing shorts would be the most likely way of keeping Dave and Max in charge of their own studio.
 
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