Surely by now we can all agree: rumors of the 30-second spot's death were greatly exaggerated. As evidenced by the year-end reels we received from production companies and agencies alike, 2006 yielded a huge spectrum of broadcast work, and the best of it was as inspired and as viable as ever. That said, anyone who spent even a tiny portion of their year in front of a computer screen knows that the way we consume media is changing rapidly. From advertising to interpersonal relationships to the 2006 American mid-term election, YouTube had a profound and wide-reaching effect on the world. Extrapolate that five or 10 or 20 years into the future and it's obvious we're on the crest of a massive sea change.

As such, in the course of determining our Production Company of the Year for 2006, we knew it would be important to consider the steps that prodcos were taking to capitalize on these new opportunities. We also knew that dabbling in alternate broadcast disciplines such as viral, web shorts and longform content for the sake of it wouldn't be good enough. We wanted to find a company that was not only doing everything, but doing it well. That search led us to Smuggler's doorstep.

Founded in early 2002 by ex-Satellite line producer Patrick Milling Smith and ex-Satellite head of sales Brian Carmody, the bicoastal production company entered into its first year with a roster that included Brian Beletic, Ivan Zacharias, Neil Harris and Happy. In the years since, Smuggler has added names like Chris Smith, David Frankham and Stylewar and gradually staked out a place as one of the industry's premier production companies. With its reel boasting stellar broadcast work for top-tier brands such as Geico, Sprite, ESPN, Nike, Virgin Mobile, eBay, Vaseline, American Express, Amp'd Mobile and Red Stripe, 2006 was, in many ways, business as usual for Smuggler, something Milling Smith acknowledges was bolstered by its strong partnership with UK affiliate Stink. "It's been huge to get Ivan over here," he says. "One of our big ambitions for next year is to get people like Ne-O, Nacho Gayan and Martin Krejci to America to do a job."

But while Milling Smith touts 2006 as "the best year we've ever had for the 30-second commercial," a look beyond Smuggler's traditional broadcast output reveals a whole other menu of content that has managed to extend the company's reach while simultaneously reinforcing its considerable quality control. There was the White House-affronting "Still Free" viral for Ecko Unlimited, an elaborate stunt which captured the attention of the world's press, not to mention the Pentagon, and saw newly-signed director Randy Krallman pick up a Cyber Grand Prix at Cannes in his very first assignment. There was a successful branded content venture for OfficeMax through DDB Chicago; directed by new signing and Academy Award-nominated documentary filmmaker Henry Alex Rubin (Murderball), the long-form TV special Schooled ultimately garnered over 5 million views in its television and web incarnations. There was also Smuggler's short film and music video output, which, punctuated by Happy's contribution to the Adicolor campaign ("Green") and Brian Beletic's unlikely TRL-topper for Lady Sovereign, proved typically superb.

There was also a massive branded content initiative for eBay, which CAA, BBDO and Smuggler are just unveiling now. A riff on the concept of user-generated content, the campaign finds Smuggler curating 140 charming films from friends, parents and creative types, each of which revolves around an item the filmmaker has put up for auction, and producing an additional 10 eBay-branded shorts by rostered directors such as Happy, Krallman, Renny Maslow, Beletic and Stylewar. All of this, according to those in the know, is just the tip of the iceberg, a laying of the groundwork for even bigger things in 2007, in which the company will launch a co-venture offshoot with David Droga's Droga5 agency that will position them even more favorably within the worlds of branded content, feature film and television production.

Needless to say, even over the phone, the energy at the Smuggler offices is palpable. In the course of talking about the future, Milling Smith and Carmody take on the hushed tones of equal parts exhilaration and disbelief. Directors like Beletic, Happy and Rubin buzz excitedly and elliptically about future television ventures and feature film projects. Even Krallman - a guy known for his deadpan humor - gets a bit mushy when the subject turns to his co-workers. The typical rhetoric from most prodcos is that the staff and roster operate as a family, but judging from the frequency and willingness with which Smuggler's crew drop playful barbs, compliments and anecdotes about each other, in this case, it seems to actually be true.

"There isn't a director on the roster that we're not friends with," says Happy's Guy Shelmerdine. "We'll hang out, go to parties, chat on the phone. None of us are in competition, and that's important, because at the end of the day I want the best for David Frankham or Stylewar or whoever." As Smuggler's most recent addition, Rubin credits the rest of the roster with helping him make the transition into the commercial world. "I've had a lot of mentors here," he says. "When I first started writing treatments, they read like screenplays, and people like Beletic and Ben Mor helped me see how to communicate through a treatment. I've learned a lot of lessons from the directors I've befriended." It's an atmosphere that Krallman says starts from the top. "There's definitely a 'No Douchebag' rule that runs across the board," he explains. "If whoever does the hiring is a shitty person, they're probably an asshole boss, and it kinda trickles down. At Smuggler I think they tend to hire people they want to talk to and spend time with on a daily basis."