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The federal broadcasting regulator has announced a new definition of Canadian content. To qualify, a human, not an AI, must maintain creative control.
The new definition maintains the same approach as the previous definition by using a point system to determine whether something is cancon based on the number of Canadians occupying key creative positions within the work.
The latest definition expands the list of positions that count toward the total to include jobs such as showrunner, special effects director, and costume director.
The CRTC argues that these roles should be filled by humans, not AI.
“While AI can serve as a potential tool to support Canadian content production, the Commission believes that humans should retain creative control to support economic opportunities and compensation for Canadian creators,” the new regulation reads.
The new definition will allow productions to earn bonus points for cultural elements (for example, recognizable Canadian characters or settings, or stories based on Canadian publications).
“What we’re trying to do with this definition is expand it so that more productions qualify as Canadian,” said Scott Shortliff, CRTC’s vice president of broadcasting.
“In the long term, we hope this will foster collaboration, put more money into Canadian productions, lead to more well-funded, high-level, and engaging Canadian productions, and ensure that smaller-scale films, documentaries and television series are seen.”
Cancon’s definition applies to both traditional media and online streaming services, and was announced after regulators held two weeks of public hearings on the issue earlier this year.
This decision is part of the CRTC’s ongoing work to implement the Online Streaming Act, which updates the Broadcasting Act to incorporate online platforms like Netflix.
This introduces new disclosure requirements for large streaming platforms, requiring the CRTC to publish information about each streamer’s broadcast revenue and spending on Canadian content.
“Certain online operators have expressed concerns that data disclosure could affect the level of competitiveness in the market,” the decision states.
“The harm that would result from disclosing that data is unlikely to outweigh the public interest,” the regulator said in its opinion.
Mr. Shortliff said regulators do not believe the disclosure requirements are particularly onerous.
“Canadian companies have been required to do this for a very long time,” he noted.
The Canadian Film Institute, which represents major streamers such as Netflix, Paramount, Disney and Amazon, announced Tuesday that it is reviewing the decision.
Major foreign streamers are already challenging the CRTC’s previous decision that they must pay 5 per cent of their annual Canadian revenue into a fund dedicated to Canadian content production.
Apple, Amazon and Spotify are resisting the order, while the Canadian Film Institute is objecting to a section requiring contributions to local news.
CanCon’s decision also introduces new minimum copyright requirements that apply in addition to a system for counting key creative positions. For a production to qualify as Canadian programming, at least 20 per cent of the copyright must be owned by Canadians.
The Canadian Broadcasting Corporation said in a statement that the CRTC’s decision on Tuesday “recognizes the importance of Canadian intellectual property rights, but is balanced and adds some flexibility.”
“We are also encouraged by the commission’s efforts to reduce administrative burdens and level the reporting requirements for foreign and Canadian broadcasters,” the group said.
