Canada’s Animation Giant Falls Silent: Corus Halts Production At Nelvana, Ending A 50-Year Legacy

Corus Entertainment has paused production at Nelvana Ltd., ending one of the most influential runs in Canadian animation history. The announcement ends a sobering chapter for a studio that, for more than 50 years, helped shape Canada into a recognized global hub for standout and unforgettable children’s content.

In an email statement to The Globe and Mail, Corus said Nelvana is not being shuttered outright but confirmed that ongoing productions are being wound down and new ones are on hold “for the time being.” The company said the Nelvana brand will live on, “focusing on distribution, merchandising, and managing existing properties,” according to Melissa Eckersley, Corus’s head of corporate communications. No details were provided about how many employees have lost their jobs in recent months as the studio’s production pipeline closed.

Founded in 1971 by Clive Smith, Michael Hirsh, and Patrick Loubert, Nelvana earned international acclaim with The Care Bears Movie (1985) and went on to produce some of the most beloved children’s programming of the late 20th century, including Franklin, Babar, and The Magic School Bus. Its more recent portfolio ranged from Barney’s World to Thomas & Friends: All Engines Go, alongside ventures into live action such as the 2020 Hardy Boys series.

Corus acquired Nelvana in 2000 for $540 million, making it a cornerstone of the broadcaster’s international expansion strategy. But mounting debt and plummeting ad revenues have forced the company into repeated rounds of cost-cutting. In June, Corus reported more than $1 billion in long-term debt, alongside double-digit declines in advertising revenue. Analysts have warned that the company’s financial outlook is “very precarious” (as cited in The Globe and Mail).

The shutdown comes at a time of increased strain for the Canadian kids’ content industry. Last week, WildBrain Ltd. announced it would shutter four specialty channels, including the long-running Family Channel. Across the animation sector, service studios and independents alike have endured widespread layoffs over the past two years, with inflation, interest rate hikes, cuts to public financing and tax systems, and the fallout from the 2023 Hollywood strikes compounding the damage left by pandemic-era disruption.

For many in the industry, the suspension of Nelvana’s production activities feels like the loss of a cultural institution. We received numerous messages – some anonymous, others off the record – from employees who were gutted, not only to lose their jobs, but at the larger implications that an institution like Nelvana ceasing production brings to an already turbulent time for their industry.

The studio was instrumental in developing a strategy of building shows around valuable IP and exporting them worldwide. Its absence from the production landscape leaves a hole not just in the market, but in the creative heart of the country’s animation scene.

While Nelvana’s name may live on through licensing and merchandising, the silence from its storied production floor is a grim reminder of the pressures facing animation studios today. For those who grew up with its characters or built their careers inside its pipeline, the news carries the weight of more than just another business decision.