When Oswald had worn out his welcome, Lantz decided that he needed a new character.
Meany, Miny, and Moe, Baby-Face Mouse, and
Snuffy Skunk were only a few of the personalities Lantz and his staff had come up with. However, one character,
Andy Panda, stood out from the rest and soon became Lantz's headline star for the 1939-1940 production season.
In 1940 Lantz had married actress
Grace Stafford. During their honeymoon, the couple kept hearing a woodpecker incessantly pecking on their roof. Gracie suggested that Walter use the bird for inspiration and make him into a cartoon character. Taking her advice, though a bit skeptical about its success, Lantz debuted
Woody Woodpecker as a side star in an animation short called
Knock Knock featuring
Andy Panda.
Mel Blanc supplied Woody's voice for his first three cartoons. When Blanc accepted a full-time contract with
Leon Schlesinger Productions/Warner Bros. and left the Lantz studio, gagman
Ben Hardaway, who was the main force responsible for
Knock Knock, became the bird's voice. Despite this, however, Blanc's distinctive laugh was still used throughout the cartoons.
During 1948, the Lantz studio had a hit
Academy Award-nominated tune in “The Woody Woodpecker Song”, featuring Blanc’s laugh. Mel Blanc sued Lantz for half a million dollars, claiming that Lantz had used his voice in various later cartoons without his permission. The judge, however, ruled against Blanc, saying that he had failed to copyright his voice or contributions. Even though Lantz had won the case, he paid Blanc the money in an out-of-court settlement when Blanc filed an appeal, and went off to search for a new voice for Woody Woodpecker.
In 1950, Lantz held anonymous auditions. Gracie, Lantz's wife, had offered to do Woody's voice; however, Lantz turned her down because Woody was a male character. Not discouraged in the least, Gracie went about secretly making her own anonymous audition tape, and submitted it with the others for the studio to listen to. Not knowing whose voice was being heard, Lantz picked Gracie’s voice to do Woody Woodpecker. Gracie supplied Woody’s voice until Lantz finally stopped making new cartoons for
Woody Woodpecker. At first Gracie had chosen to voice Woody with no screen credit because she thought that it would disappoint the children to know Woody Woodpecker was voiced by a woman. However, she soon came to enjoy being known as the voice of Woody Woodpecker, and allowed her name to be put on the credit screen.
The
baby boomer generation came to know and love Lantz as the creator of the
Woody Woodpecker cartoons. He used his TV appearances to show how the animation was actually done. For many of those young viewers, it was the first time they had seen an explanation of the process. That same generation later knew him for entertaining the troops during the
Vietnam War and visiting hospitalized
veterans.