The latest update from the federal broadcast regulator has brought forth a revised definition of Canadian content, emphasizing that creative control must remain in human hands to meet the criteria, rather than relying on artificial intelligence. This new definition retains the familiar points-based system for determining Cancon status, which evaluates the involvement of Canadians in key creative roles within a production.
The updated definition now includes additional positions, such as showrunner, special effects director, and head of costuming, in the tally of qualifying roles. According to the Canadian Radio-television and Telecommunications Commission (CRTC), it is essential for these positions to be filled by individuals rather than AI.
While acknowledging the potential of AI as a supportive tool in content creation, the CRTC emphasizes the importance of human oversight to promote economic opportunities and fair compensation for Canadian creators. The revised definition also introduces the option for productions to earn extra points by incorporating cultural elements, such as Canadian characters or settings, and narratives inspired by Canadian publications.
Scott Shortliffe, Vice President of Broadcasting at the CRTC, highlighted the objective of broadening the definition to enable more productions to be recognized as Canadian. The ultimate goal is to stimulate collaborations and increase investments in Canadian content, leading to a diverse range of high-quality productions, from mainstream to niche projects like documentaries and independent films.
The Cancon definition, applicable to both traditional media and online streaming services, follows a two-week public hearing conducted earlier this year by the regulator. This decision aligns with the ongoing efforts of the CRTC to implement the Online Streaming Act, updating regulations to encompass digital platforms like Netflix.
As part of this implementation, large streaming platforms will face new disclosure requirements, mandating the publication of data on their broadcasting revenues and expenditures on Canadian content. Despite concerns raised by some online providers regarding data disclosure affecting their market competitiveness, the CRTC believes that the public interest outweighs any potential drawbacks.
Shortliffe emphasized that the disclosure mandate is not unduly burdensome, noting that Canadian companies have long been subject to similar requirements. The Motion Picture Association-Canada, representing major streamers like Netflix and Amazon, stated its intent to review the decision.
Meanwhile, foreign streaming giants are contesting previous CRTC rulings that necessitate a percentage of their Canadian revenues to be allocated towards Canadian content production. The Cancon decision also introduces a new minimum copyright ownership threshold, requiring at least 20% of copyright to be held by Canadians for a production to qualify as Canadian.
In response to the CRTC’s decision, the Canadian Association of Broadcasters expressed satisfaction, describing the ruling as balanced and flexible. The association welcomed the commitment to reducing administrative burdens and equalizing reporting obligations between foreign and Canadian broadcasting entities.