Corus Halts Nelvana Productions, Focuses on Managing Animation Library

Toronto, Canada — Corus Entertainment has stopped production at its famed animation studio Nelvana Ltd., marking a potential end to a prolific 50-year legacy that helped establish Canada as a notable player in the animation industry. The company announced via email on Tuesday that it plans to wind down current projects while pausing new productions, though the Nelvana brand will continue to exist.

Melissa Eckersley, Corus’s head of corporate communications, stated, “The Nelvana brand will still exist, focusing on distribution, merchandising, and managing existing properties.” The decision raises concerns among employees as the company declined to disclose how many jobs would be affected by this pause.

Founded in 1971 by Clive Smith, Michael Hirsh, and Patrick Loubert, Nelvana gained recognition for producing popular shows like “Franklin,” “Babar,” and “The Magic School Bus” since the 1980s. In recent years, it worked on “Barney’s World” and “Thomas & Friends: All Engines Go.” However, Corus’s financial instability, which includes over $1 billion in long-term debt, has led to significant cost-cutting measures.

The animation industry has faced numerous challenges, including the repercussions of COVID-19 and a surge in inflation. Additionally, the recent Hollywood strikes impacted production schedules and budgets. This hardship intensified when WildBrain Ltd. announced closures of several children’s channels, including the long-standing Family Channel.

Corus reported a 15 percent decline in ad revenue in June compared to the previous year, attributing decreased production revenues to fewer episode deliveries. Bank of Montreal analyst Tim Casey warned that the company’s financial outlook is “very precarious,” with looming debt maturities creating further uncertainty.

Previously, Corus extended the maturity date for some of its debts, providing temporary relief in managing its financial obligations. As the company grapples with a declining stock price and rising operational costs, the future sustainability of Nelvana remains in question.

Despite the challenges ahead, the vast library of Nelvana’s animated properties continues to be available on various streaming platforms, leaving room for hope amid uncertainty. Yet, the lack of new productions signals a significant shift in the creative landscape of Canadian animation.