Quebec City and Ottawa: where animation comes to life
Although far from major economic centres, Quebec City and Ottawa have become indispensable to the country’s film and TV production. Why the boom? And how can these animation hotspots overcome the challenges rocking the industry?
“They thought I was nuts,” recalls director/producer Nancy Florence Savard. She’s thinking back to 1998, when she decided to found her production company, 10th Ave Productions, in Saint-Augustin-de-Desmaures, in the suburbs of Quebec City, rather than in a major business centre.
“Although 2D animation was going through a difficult period at that time, I wanted to establish myself in Quebec’s capital region because I’m a local girl. And I thought after every crisis something beautiful always emerges. For me, that was the rise of 3D animated films.”
From The Legend of Sarila (2013) to Lydia and the Mist Rider (2026), 10th Ave Productions and its boutique studio 10th Ave Animation — today located on Quebec City’s historic Grande Allée — have become industry leaders in the creation of completely Canadian feature-length animated films.
![Lydia Et Le Vaisseau Des Tempêtes [10e Productions] 3](https://cmf-fmc.ca/wp-content/uploads/2026/07/Lydia-et-le-vaisseau-des-tempetes_10e-Productions_3-1138x477.jpg)
Other businesses specializing in animation have also made their mark in the region, on screens big and small. Epic Storyworlds and Loomi Animation released the Guiby the Super Baby series, Du Coup Production and Du Coup Animation worked on the film Hola Frida!, and Happy Camper Media is preparing its first feature film, which will be based on the Super Agent Jon Le Bon! series and should hit theatres in October 2027.
“More than ever, we’re sharing our intellectual property in Quebec,” says Savard, who attributes this “veritable effervescence” to the excellent animation schools established in the Old City, the cooperation between studios, and the city’s financial incentives, like filming permits and production services.
Ottawa Joins Quebec City as an Animation Capital
Ottawa is also home to several well-established television production studios. Big Jump Entertainment (Red Ketchup) and Mercury Filmworks (Hilda) work directly with big North American media groups and distributors like Netflix, Disney+ and CBC. Jam Filled Entertainment, best known for the kids’ series Dino Ranch, has seen a dazzling ascent from its beginnings as a start-up in the attic of a pizzeria to a $10 million studio.
“Several measures are helping the sector grow in the region,” explains Kelly Neall, managing director of the Ottawa International Animation Festival (OIAF). “In Ontario, subsidized tax credits are offered to projects shot outside of the Greater Toronto Area,” she explains. These credits are complemented by Ontario Creates’ Intellectual Property (IP) Fund, which helps Ontario companies develop, produce and commercialize screen content.
As for animated films, the OIAF — considered the genre’s largest North American festival — acts as a strong showcase for the local ecosystem.
“The event fosters collaboration, helps people expand their networks and develop their skills through workshops,” says Neall, pointing to two former participants, Jessica Borutski and Nick Cross, who have since gained international recognition as animators and directors.
Highs and Lows
Like the rest of the audiovisual industry, the animation sector is undergoing major changes, including in Ottawa.
“We’re a service industry, so we do a lot of work for the U.S., but there’s actually very little incoming work from there,” says Cory Morrison, president of Big Jump Entertainment. “And with fewer broadcasters to pitch IP to, and declining support from Canadian networks, opportunities to develop projects, produce content or secure service and co-production work in Ontario are now very limited. YouTube has become the new television.”
The Ottawa Business Journal reported that the sector’s revenues reached $60 million during the pandemic, but only $28 million in 2025. This drop is now being felt in the job market. “Every day, I probably get a dozen emails from people looking for work,” says Morrison. “Three to four years ago I wouldn’t have received [any] for weeks because everybody was employed. People were being recruited straight out of college.”
In Quebec, the situation is a little different, while still far from perfect. “The decrease in tax credits [from the provincial government in 2024] harmed the industry, especially in Montreal, which does more work for foreign clients,” says Savard. “Here, as we principally produce original projects, rather than do service work, we have more or less the same understanding of what to do with more limited budgets. Let’s say we know how to be creative.”
Looking to the Future
If activity doesn’t pick up significantly in Ottawa and elsewhere in the country, several industry players may have to rethink their business plans.
“We’re entering a moment where independent creators and studios will increasingly build content from scratch, often through platforms like Kickstarter or Patreon,” says Morrison. “The most successful creators will be those who know how to build and engage communities, then turn that attention into sustainable revenue while continuing to offer real value and a sense of shared creation with their audiences.”
Could artificial intelligence be part of the solution?
Big Jump’s Morrison says it could certainly help to automate technical tasks and accelerate workflows. “There has to be an ethical way of moving forward with AI that not only benefits the artist and the creator but benefits the bottom line of production. In a perfect world, instead of having a crew of 200 people for one production, you would have a crew of 200 people for five productions.”
Savard, however, is cautious. “AI could be useful to us, but it shouldn’t compromise copyright. We still want humans telling stories and bringing characters to life.”
The industry will continue to seek a balance between technological innovation and artistic identity, and to evolve without losing its strength — its creative talent.
