In November 1996, FutureSplash was acquired by Macromedia, and Macromedia re-branded and released FutureSplash Animator as Macromedia Flash 1.0. Flash was a two-part system, a graphics and animation editor known as Macromedia Flash, and a player known as Macromedia Flash Player. FutureSplash Animator was an animation tool originally developed for pen-based computing devices. Due to the small size of the FutureSplash Viewer, it was particularly suited for download on the Web. Macromedia distributed Flash Player as a free browser plugin in order to quickly gain market share. By 2005, more computers worldwide had Flash Player installed than any other Web media format, including Java, QuickTime, RealNetworks and Windows Media Player. Macromedia upgraded the Flash system between 1996 and 1999 adding MovieClips, Actions , Alpha transparency, and other features. As Flash matured, Macromedia's focus shifted from marketing it as a graphics and media tool to promoting it as a Web application platform, adding scripting and data access capabilities to the player while attempting to retain its small footprint. In 2000, the first major version of ActionScript was developed, and released with Flash 5. Actionscript 2.0 was released with Flash MX 2004 and supported object-oriented programming, improved UI components and other programming features. The last version of Flash released by Macromedia was Flash 8, which focused on graphical upgrades such as filters , blend modes , and advanced features for FLV video.

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Macromedia Flash