The Canadian Radio-television and Telecommunications Commission (CRTC) has introduced a revised definition of Canadian content that emphasizes the necessity of human creative control over Artificial Intelligence (AI) in order to qualify for Cancon status.
In this updated definition, the CRTC maintains the existing points-based system to assess Cancon eligibility, emphasizing the importance of Canadian individuals occupying key creative roles in a production. The modernized definition now includes additional positions such as showrunner, special effects director, and head of costuming in the tally of qualifying roles, stipulating that these positions must be filled by humans, not AI.
While acknowledging the potential role of AI as a supportive tool in content creation, the CRTC asserts that creative control should remain in human hands to safeguard economic opportunities and fair compensation for Canadian creators. Productions can also earn bonus points under the new definition for incorporating cultural elements like Canadian characters, settings, or stories based on Canadian sources.
Scott Shortliffe, the CRTC’s vice-president of broadcasting, stated that the aim of the expanded definition is to increase the number of certified Canadian productions, fostering collaborations and investment in Canadian content across various genres and formats.
The Cancon definition applies to both traditional media and online streaming services, aligning with the ongoing implementation of the Online Streaming Act by the CRTC. This legislation, designed to update broadcasting laws for online platforms like Netflix, includes new disclosure requirements for major streaming services, mandating public reporting of broadcasting revenues and expenditures on Canadian content.
Despite concerns raised by some online platforms regarding data disclosure affecting market competitiveness, the CRTC emphasizes the public interest served by transparency in broadcasting practices. The regulator views the disclosure requirement as a standard obligation for Canadian companies operating in the media sector.
The decision by the CRTC is under review by industry stakeholders, including the Motion Picture Association-Canada representing major streamers like Netflix, Paramount, Disney, and Amazon. The challenge to contribute a percentage of annual Canadian revenues towards Canadian content production remains a point of contention for foreign streaming giants.
Additionally, the updated Cancon decision introduces a new minimum copyright ownership requirement, stipulating that at least 20% of copyright must be held by a Canadian entity for a production to qualify as Canadian content. The Canadian Association of Broadcasters has welcomed the CRTC’s decision, noting its balanced approach and commitments to streamlining reporting requirements for both foreign and Canadian broadcasting companies.
