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In Ponyo he imagines a kind of Father Nature of the sea, Fujimoto,* who disdains humanity and seeks only to fill the seas with as much life as he can draw from his alchemical vials. But he loses one of his (many many) goldfish "daughters," Ponyo, who makes it to land and becomes more or less human. I will not divulge too much plot; suffice it to say that, although elements of Ponyo might feel like Finding Nemo or The Little Mermaid--or the aforementioned Pinocchio--let alone any number of his other films, as always Miyazaki produces something original, with enough beauty and rushing action--and half-whimsical, half-hallucinatory sequences (the flooded town and boat trip makes for yet another of his unforgettable waking dreams)--to keep children's attention--a tricky feat these days.
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Generally, if one has never seen a Miyazaki film, the best advice is to begin with My Neighbor Totoro (1980) or the startling Spritied Away (2001)--my favorite; but Ponyo (aside from being only one of two Miyazaki titles on Instant Play) works well, again especially for the wee ones, as a glimpse into a world that shines somewhere adjacent to the one we know.
*Voiced in the English version by Liam Neeson; most of Miyazaki's English-dubbed films feature familiar voices--here the cast includes Cate Blanchett, Noah Lindsey Cyrus, Matt Damon, Tina Fey, Frankie Jonas, Cloris Leachman, Lily Tomlin, and Betty White.