Vancouver: Service contracts with big u.s. and Canadian animation companies – the staple of most Vancouver animation companies – have dwindled significantly and have created an environment where local studios need to put their long-held hopes of doing their own material into action.

‘This has evolved by necessity,’ says Mark Freedman, president of the B.C. Association of Animators, referring to the recent growth of homegrown animation production as a proportion of overall animation production.

‘With less and less service work available, this is the only way [for animation studios] to survive,’ he explains. ‘And of course, the only way to ultimately grow your business is to produce your own content.’

The development cycle for that content, however, is a long process. For example, veteran service provider Studio B Productions – founded in 1988 by Chris Bartleman and Blair Peters – has taken five years to produce its own shows, persistence that will pay off handsomely this fall when three in-house series go to air.

Debuting in the fall are Yvon of the Yukon (which actually has a sneak preview on ytv June 14), D’Myna Leagues (on ctv), and What About Mimi? (on Teletoon).

The company, which employs 100 artists, writers and producers, recently moved into a new 27,000-square-foot facility near Coal Harbour to accommodate its expansion.

Peters attributes Studio B’s current success to a strict adherence to a five-year strategic plan, which dictated that by 2000, the company’s time and resources would be divided equally between service contracts and indigenous productions. Initially, Studio B focused on service work for clients such as Nelvana, Walt Disney Television, Nickelodeon and cbs. During this time, profits were reinvested in the company to ensure that the infrastructure was in place to attain the 2000 goal.

Today, Studio B’s service contracts include Ned’s Newt and Corduroy Bear for Nelvana, Cat Dog and Angry Beavers for Nickelodeon, Timon and Pumbaa and Jungle Cubs for Disney, and Little Witch and Santa Mouse for Sony Wonder. At press time, Mimi had the go ahead for another season and negotiations were ongoing for Yvon and D’Myna Leagues. Studio B is also in development on another series for wic called Wendy the Witch.

Meanwhile, Mainframe Entertainment, continues to churn out service and in-house production with its roster of 300 employees.

‘Were trying to achieve a balance between what we call higher risk [indigenous] productions, coproductions and service contracts,’ says Mainframe director of communications Mairi Welman. On the independent side, Mainframe is working on two movies based on its computer-animated Reboot series. Mainframe also has service contracts for Action Man with Hasbro and Heavy Gear with Sony. And with Imax, which now owns 19% of Mainframe, it is co-producing Gulliver’s Travels, an imax film for 3-D theatres.

Not every studio is thriving by dedicating itself to its indigenous projects. Finding financing partners such as offshore coproducers often means selling some of the creative control, says Herve Bedard of NOA Network of Animation.

noa has produced Billy the Cat with a European partner and the award-winning Cybersix with a Japanese partner.

Bedard, whose studio has shrunk from 25 to two in the low cycle between productions, adds that while Billy the Cat airs in 70 countries, he does not consider it a financial success. For a series to be financially successful, he says, it needs a u.s. broadcaster to back it, and other revenue-generating deals such as merchandising.

Bedard is currently working on what he calls ‘Billy 2’ – 26 more episodes of Billy the Cat that are being backed by wic and have received development funding from British Columbia Film.

As for the industry’s future, Freedman, whose own company, Barking Bullfrog Cartoon Company, has had significant layoffs in the past year, believes the Internet will play an increasingly large role in creating interesting indigenous product.

‘The Internet will allow you to show off your projects in an easier fashion to a larger audience,’ he explains.

The Internet industry is already providing jobs for animators who have found themselves out of work in the past year. Many of these people are now showcasing three-minute original animation pieces on the Net using Flash, or working for Internet companies creating gif files or banner ads for site content.

Freedman is also hopeful the government will help create a more level playing field for Vancouver companies wanting to produce their own content.

‘All of the provinces seem to be competing with tax credits for indigenous productions,’ he says, adding that b.c. has been surpassed by other provinces. He says members of his industry are currently in discussion with the provincial government to address the tax credit issue. ‘Unlike other provinces that focus on digital animation and effects, we want to stress the creative artist who will use any tool, whether it’s computer, clay or traditional [cel].’

Bedard agrees government needs to step up its involvement in the industry if it is to survive long term. But rather than just tax credits, he would like to see more provincial and federal government funding for these indigenous animation projects to make Vancouver – and ultimately Canada – a dominant player in this industry.

‘France did this when it decided to invest money into becoming a leader in cgi,’ he says.