It’s a sad day for Canadian animation fans as Corus Entertainment announced that it has stopped new productions at Nelvana Studios, due to the org’s ongoing financial troubles. Corus’s head of corporate communications Melissa Eckersley told The Globe and Mail that Nelvana will continue focusing on distribution, merchandising, and managing existing properties, but declined to say how many jobs were impacted by this production shutdown.
Founded in 1971 by Clive Smith, Michael Hirsh and Patrick Loubert, Nelvana has been a powerful creative figure both in Canada and around the world thanks to its long string of popular animated shows. Franklin, Babar, The Magic School Bus, The Care Bears, The Adventures of Tintin, The Magic School Bus, The Backyardigans, Beetlejuice, Redwall, Jane and the Dragon, The Berenstain Bears, Ruby and Max, Little Bear, Rupert, Miss Spider’s Sunny Patch Friends, Star Wars: Ewoks and Droids and Rolie Polie Olie, Beyblade, The Racoons and Bakugan Battle Brawlers. In recent years, the studio produced shows such as Barney’s World, and Thomas & Friends: All Engines Go. In addition to its prodigious TV series output, Nelvana was also a player in the big-screen arena, producing titles such as Rock & Rule (1983), the Care Bear Movies, Babar: The Movie and Franklin and the Turtle Lake Treasure (2006).
Corus bought Nelvana in 2000, and spent $540 million as part of its global expansion plans. However, in June, Corus reported that it had over $1 billion in long-term debt in its third-quarter fiscal results.
The news comes at a tough time for the Canadian animation industry, as the service sector struggles to get back on its legs after the COVID layoffs and the changing nature of the traditional entertainment paradigms due to the shrinking of linear entertainment models and the consolidation of the streaming landscape. Just last week, another Canadian powerhouse WildBrain said that it is shutting down its four TV channels, including the Family Channel after Rogers and Bell said they wouldn’t distribute them anymore.
According to The Globe and Mail, Corus’s ad revenues have dropped 15% from the previous year in June, with executives expecting further declines in the next quarter. Revenue from distribution, production and other sources was also down 5% in June compared with the year prior, which Corus attributed to “fewer episode deliveries and reduced service work.” Nevertheless in the 2024 financial year, Corus paid $1.8-million in bonuses to five top executives, largely based on hitting targets for cash flow, although the company’s shares had fallen 90% in that period.
Source: The Globe and Mail
