Alliance Atlantis Communications may be extinct, but its template for global expansion has become a priceless fossil for Canadian production companies.

A diversified TV slate with strong international clients has become the model for success in a country with a population about half the size of France. Consequently, Canadian prodcos still need to "partner" with the U.S., Europe and Asia to grow.

Meanwhile, the disappearance of AAC from Playback's annual independent production chart, where it traditionally occupied top spot for largest production and development volume, has cleared the deck for a Western Canadian company - Vancouver's Insight Film Studios - to stake the number-one claim in sheer size.

Insight's production and development volume of $179.3 million in 2007 represented growth of nearly 50% over spending the year before (see story, p. 19). Toronto's Shaftesbury Films shot into second place (from fifth), with spending volume jumping by 27% in 2007 to $68.5 million, while Toronto animation company Nelvana Studios rings in third with $60 million (based on a Playback estimate).

Rounding out the top five are Blueprint Entertainment in fourth with $58.4 million (down from third) and Decode Entertainment in fifth, with total activity of $45.7 million (up from sixth).

Shaftesbury Films CEO and chairman Christina Jennings explains that growth is attributable to two one-hour drama series in production (ReGenesis and Murdoch Mysteries), yet she says success also comes from the company's active development slate as well as strong international financing partnerships.

"Over the past few years we have brought a lot more international money to the table," says Jennings. "Foreign presales are a big part of the growth on the kids TV side of our business, and our dramas wouldn't have been made without international money."

Blueprint Entertainment chairman John Morayniss says his company's continued strong showing is thanks in part to its new kids division (launched a year ago), added revenues from its new global arm, Oasis International (purchased in '07) as well as a diverse slate of TV productions.

"If you have a diverse mix of genres - one-hours, half-hours, TV movies, kids, animation, scripted and unscripted - it allows you to ride the ebbs and flows and unpredictability of production," says Morayniss. "We are taking a long-term approach and have a broad focus, because you never know when the appetite for different genres of programming will change. One year, broadcasters are into one-hour dramas, the next it is half-hours."

Nelvana and Decode have both found success as suppliers of quality children's programming for the global market.

"Canada is becoming the major supplier of children's animated programming to the world," says Scott Dyer, EVP and GM of Corus Kids Television and Nelvana Studios. "Nelvana, for example, is selling its shows to over 160 countries."

An increasing number of channels worldwide is also fuelling the boom, according to Steven DeNure, president of Decode Entertainment. "A lot of this international demand is due to the fact that large cable satellite services such as Disney Channel, Nickelodeon and Cartoon Network are launching in new territories in Europe and Asia."

Dyer also points to growth in off-air markets for kids programming, such as video-on-demand and broadband Internet channels.

"New technology - much of which is being developed right here in Canada - is improving the quality of animation and bringing down the costs, which is helping us move more jobs back to Canada instead of depending on overseas partners," adds Dyer. "This is causing a growth in small and medium-sized animation companies across the country."