It was founded in 1991 by Sony Visual Development as the children and family music and home video division. The division once distributed material from Sesame Workshop and Classic Media (now DreamWorks Classics). They also distributed releases from Random House's home video division from 1995 to 2007.
On July 6, 1993, Sony Wonder acquired video distribution rights to Nickelodeon's series.
On July 21, 1995, Sony Wonder and Sony Pictures Home Entertainment joined forces with the Jim Henson Company by releasing new movies with Columbia Pictures and TriStar Pictures through the venture of Jim Henson Pictures and new sing-along-songs on videocassette and DVD. The next day, Nickelodeon and Sony Wonder launched Nick Jr. Video. In 1996, two years after Viacom's purchase of Paramount, Sony Wonder's deal expired with Nickelodeon, which left Nickelodeon videos distributed by Paramount Home Entertainment (and CIC Video internationally until 1999).
On May 4, 1998, Sony Wonder bought Sunbow Productions and it was later bought by TV-Loonland on October 3, 2000 as well as Sony Wonder's television business assets.
On March 13, 2007, Sony BMG announced that it was shutting down Sony Wonder to focus on its core music business. However on June 20, 2007, it was announced that Sony Wonder became a division of Sony Pictures Home Entertainment as its kids'- and family entertainment label. CM's, Sesame Workshop's, and Random House's video deals were sold to Genius Products for an undisclosed amount, and later to Vivendi Entertainment. TV-Loonland held the television rights of the television series by Sony Wonder(including -- with certain exceptions -- the Sunbow catalog).
Despite the similarity in name, Sony Wonder is not directly related to the Sony Wonder Technology Lab, a four-story interactive technology and entertainment museum for all ages located in midtown Manhattan, although they are both owned by Sony.
However, on January 13, 2013, Sony Wonder now teams up with DHX Cookie Jar to create Greeny Phatom, the TV show made by the company. But on September 20, 2013, Sony Wonder unfortunately teams up with The Mall Peanuts Company because of DHX Cookie Jar's three paid YouTube channels. On December 25, 2013, a new Greeny Phatom TV show has announced, and it aired on TV on December 28, 2013.