Spurred on by a bigger appetite for programming among U.S. cable broadcasters and domestic specialty channels – and a healthier international marketplace overall – Canadian production is continuing the rebound hinted at after 2005.

According to Playback’s 19th Annual Report on Independent Production, Canadian production and development spending rose 21% in 2006 to $1.52 billion, up from $1.26 billion in 2005.

This is the first significant increase in spending activity since 2000, when the industry peaked at $1.83 billion and then began a downward spiral to a low of $1.24 billion in 2004. In 2005, the first sign of a potential turnaround occurred, with production volume posting an increase of 2%.

‘We certainly have a sense that production is on the upswing,’ says Guy Mayson, president and CEO of the CFTPA, in response to the Playback numbers. ‘There are encouraging signs of a new step forward for the production sector and a new level of activity and maturity.’

Playback’s numbers are gathered from the calendar 2006 spending activity of the 254 Canadian prodcos that chose to respond – 102 more than in the previous year. For some of the companies that did not submit figures, Playback has entered an estimate.

The CFTPA conducts its own annual survey of the Canadian industry, titled Profile. Its latest study – which takes into account production from April 1, 2005 to March 31, 2006 – also found that production activity is on the rise, noting a 6% increase to $4.8 billion. (Profile’s total includes foreign location shooting and broadcaster in-house production, which Playback’s does not.)

Mayson credits the boost to a bigger commitment by Canadian broadcasters – particularly established specialty channels – to indigenous programming.

‘There is a new interest and understanding among broadcasters that Canadian shows can obtain audiences and work in a schedule,’ he says.

Mayson also points out that U.S. cable networks with limited budgets have found that by partnering with Canadian companies, they can access financing incentives, save costs, and create programs that work on both sides of the border.

The international marketplace is also improving after a downswing that hit a low point around 2002.

‘There is more of a demand for programming worldwide,’ says Peter Emerson, head of Toronto-based distributor Oasis International.

Most programming genres posted healthy gains, with the most significant year-over-year increases in the MOW/miniseries/pilot category, which saw a 50% jump to $286.8 million; and magazine/lifestyle/reality formats, which rose 49% to $114 million.

The growth in the MOW/mini genre is largely thanks to U.S. cable channels with limited budgets yet a lot of air to fill. They are increasingly partnering with Canadian prodcos to shoot these projects north of the 49th.

Meanwhile, the growth in magazine/lifestyle/reality is likely due to demand for programming from Canadian specialties, according to Mayson.

In other genres, kids live action jumped 38% in 2006 to $61.7 million; TV animation rose 33% to $232 million; and TV documentary activity increased 29% to $121.6 million.

Growth in drama series was more modest, however, marking a 7% increase to $406.8 million.

‘I think we are still frustrated by the level of Canadian broadcaster investment in drama, which is still very modest compared to what they invest in foreign programming,’ says Mayson. He suggests that domestic casters are commissioning smaller orders of episodes to reduce their risk.

Canadian feature film production remained flat, up marginally to $204.1 million.

‘The feature area continues to be challenging,’ says Mayson. ‘Canadian films have shown they can succeed in domestic and international markets. But we need to get the private investment sector interested in Canadian film to help cover the enormous costs.’

Alliance Atlantis, facing a takeover by Goldman Sachs and CanWest Global, maintained its position at the top of the indie production chart, with an estimated volume of $157 million, although it is supposed that $142 million of that was spent on the three U.S.-produced CSI drama series, of which AA currently splits ownership with CBS.

In second is Vancouver’s Insight Film Studios, which nearly tripled its production volume to $120.8 million in 2006 and jumped up from seventh spot.

Next is Toronto- and Los Angeles-based Blueprint Entertainment at $99.7 million (it did not submit figures in 2005); Toronto toonco Nelvana Enterprises, holding on to fourth spot with an estimated $57 million; and Toronto’s Shaftesbury Films, with $54.1 million, which boosts it from ninth.

The top Quebec producer is Zone3, in seventh position (down from fifth) with $45.5 million.