Nathalie Theberge, CRTC vice-chairperson of broadcasting, chairs a public hearing of the CRTC in Gatineau, Que., on Sept. 18.Justin Tang/The Canadian Press
Canada’s broadcasting regulator is expanding its definition of Canadian content, as part of an update designed to support the creative industry as it contends with competition from global streamers.
The Canadian Radio-television and Telecommunications Commission‘s decision, announced Tuesday, is intended to align audio and visual content regulation with the current production and distribution environment, as part of the regulator’s continuing modernization of the Broadcasting Act.
The ruling follows mounting pressure between Canadian and foreign streamers, as major American platforms are locked in a legal battle challenging Canadian spending requirements, and as traditional broadcasters continue to face declines in advertising revenue from linear radio and television.
Foreign-owned streamers such as Netflix are not currently subject to requirements to air any proportion of Canadian content. And while the Online Streaming Act requires large streamers to spend 5 per cent of their gross Canadian revenues on creating content, that decision is being challenged in court.
However, Canadian broadcasters are required to designate a proportion of their overall airtime to “Canadian content” and spend a certain amount on its production. In order to qualify as Canadian content, a production must meet multiple requirements, including that it be produced by a Canadian company and that at least 75 per cent of its services costs be paid to Canadians.
The CRTC also requires that a designated percentage of key creative positions be filled and performed by Canadians, or that other conditions are met such as being filmed or recorded in Canada.
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Tuesday’s decision recognizes a broader number of creative roles that can contribute “points” if held by a Canadian, such as creative showrunner and certain heads of departments. As well, it introduces bonus points if the content is based on a Canadian book, or includes Canadian music.
“This decision introduces greater flexibility for producers and broadcasters to meet these spending requirements while supporting Canadian culture and protecting jobs,” said Scott Shortliffe, CRTC vice-president of broadcasting.
The update also establishes that a Canadian producer or broadcaster must retain at least 20 per cent of the copyright ownership of a program when working with non-Canadian production companies. According to the regulator, this decision is intended to ensure Canadian companies retain fair and equitable control over their content without deterring international investment.
“We think having Canadian producers involved is important, but we recognize that foreign streamers, when they invest money, they also want to see the benefits from that money. So we hope we have opened up a path for increased collaboration between foreign streamers and Canadian producers to create great content,” Mr. Shortliffe said.
Kevin Desjardins, president of the Canadian Association of Broadcasters, said the CRTC’s decision is balanced and adds some flexibility, while recognizing the importance of Canadian ownership of intellectual property.
He also supported the decision to streamline the data reporting and data publication requirements, and require foreign streamers to disclose Canadian revenues and spending.
“We are also encouraged by the commission’s commitments to reducing administrative burden and levelling the reporting requirements of foreign and Canadian broadcasting companies,” Mr. Desjardins said.
Some broadcasters have challenged the Canadian content publication requirements as a whole. While some American companies have suggested the Canadian content rules constitute unfair trade barriers, domestic companies have said the system unduly limits editorial decision-making in already challenged segments such as radio and linear television.
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Josh Tabish, senior director for Canada of the U.S. trade group Chamber of Progress, said the new content policies amount to “doubling down on a complex, outdated approach that could actually make it harder to share Canadian stories with the world.”
These concerns could soon be addressed by the CRTC. Tuesday’s announcement is the first of two decisions resulting from the regulator’s consultations, which were conducted in May. The second, which the CRTC says will be published in the near future, will address spending on Canadian programs, including news, and also financial contributions for the independent production sector.
The Alliance of Canadian Cinema, Television and Radio Artists, the national union of professional performers working in recorded media, supported the CRTC’s finding that key creative positions used in any Canadian production need to be staffed by humans and not by artificial intelligence.
But the real test, said ACTRA national president Eleanor Noble, is whether it will ultimately enable more opportunities for Canadian actors.
“The next ruling on spending obligations is where we shall see if this framework will create actual opportunities for Canadian performers. We need all of these definitions to have strong teeth, and not allow billionaire-owned streamers and broadcasters to blur the lines,” Ms. Noble said.