The Canadian Radio-television and Telecommunications Commission (CRTC) has unveiled a fresh interpretation of Canadian content regulations, emphasizing the necessity of human creative involvement over artificial intelligence in order to meet the criteria for qualification.
Under the updated definition, the evaluation of Canadian content remains rooted in a points-based system that determines the extent of Cancon based on the presence of Canadian individuals in key creative roles within a production. The revised definition now encompasses a wider array of positions that contribute to the total count, such as showrunners, special effects directors, and heads of costuming.
According to the CRTC, these pivotal roles should be occupied by human beings rather than artificial intelligence. The new regulations underscore the importance of humans retaining creative control to foster economic opportunities and fair compensation for Canadian creators.
Additionally, the revamped definition introduces the possibility for productions to earn extra points for incorporating cultural elements, such as identifiable Canadian characters or settings, or narratives derived from Canadian publications. This expansion aims to certify more productions as Canadian, as highlighted by Scott Shortliffe, the CRTC’s vice-president of broadcasting.
The revised Cancon definition, applicable to both traditional media and online streaming services, follows a two-week public hearing conducted by the regulator earlier this year. This decision forms part of the CRTC’s ongoing efforts to implement the Online Streaming Act, which updates broadcasting laws to encompass digital platforms like Netflix.
Moreover, the updated regulations introduce new transparency mandates for major streaming platforms, requiring the CRTC to disclose information on each platform’s broadcasting revenues and investments in Canadian content. Despite concerns from some online entities regarding data disclosure and market competitiveness, the CRTC asserts that the public interest outweighs any potential negative impacts.
In response to the decision, the Motion Picture Association-Canada, representing prominent streamers like Netflix, Paramount, Disney, and Amazon, stated its intention to review the ruling. Notably, foreign streaming giants are contesting previous CRTC directives mandating a five percent contribution of their annual Canadian revenues towards Canadian content production funds.
Furthermore, the Cancon decision incorporates a fresh minimum copyright ownership requirement, stipulating that for a production to be classified as Canadian, at least 20 percent of the copyright must be held by a Canadian entity. The Canadian Association of Broadcasters praised the CRTC’s decision for striking a balance, enhancing flexibility, and acknowledging the significance of Canadian intellectual property ownership.
Overall, the latest regulatory adjustments aim to streamline administrative processes, harmonize reporting obligations between foreign and domestic broadcasting entities, and reinforce the Canadian content ecosystem.