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The federal broadcast regulator has released a new definition of Canadian content – and humans, not artificial intelligence, must retain creative control to comply.
The new definition maintains the same approach as the previous one, using a point system to determine whether something is Cancon based on the number of Canadians in key creative positions in production.
The modernized definition expands the list of positions that count toward the total to include positions such as showrunner, special effects director and costume director.
The CRTC says these positions should be filled by humans, not artificial intelligence.
“While AI may serve as a potential tool to help create Canadian content, the Commission believes that humans should retain creative control to support economic opportunity and reward Canadian creators,” the new rules say.
The new definition allows works to receive bonus points for cultural elements, such as recognizable Canadian characters or settings, or stories based on Canadian publications.
“With this definition, we're trying to expand it so that more productions can be certified as Canadian,” said Scott Shortliffe, CRTC vice-president of broadcasting.
“In the long term, we hope that this will encourage more collaboration, more money will be put into Canadian production, leading to better-funded, high-quality, high-quality Canadian production, and ensure that small films, documentaries and television series continue to be received.”
Cancon's definition, which applies to both traditional media and online streaming services, was published after the regulator held a two-week public hearing on the issue earlier this year.
The decision is part of the CRTC's ongoing work to implement the Internet Streaming Act, which updates broadcast laws to take over online platforms like Netflix.
It introduces new disclosure requirements for major streaming platforms, where the CRTC will publish each streamer's broadcast revenue and spending on Canadian content.
“Some online businesses have expressed concern that disclosure of data could impact their level of competitiveness in the marketplace,” the decision noted.
The regulator said it believed it was “unlikely that any harm caused by the disclosure of this data would outweigh the public interest.”
Shortliffe said the regulator did not consider the disclosure requirement to be particularly onerous.
“Canadian companies have been forced to do this for a very long time,” he said.
The Canadian Film Association, which represents major streamers such as Netflix, Paramount, Disney and Amazon, said Tuesday it was reviewing the decision.
Major foreign streamers are already challenging the CRTC's earlier decision that they must pay five per cent of their annual revenues in Canada into funds dedicated to the production of Canadian content.
Apple, Amazon and Spotify are fighting the order, while the Canadian Film Association is challenging a section requiring them to participate in local news.
The Cancon decision also introduces new minimum copyright requirements that apply in addition to the system for counting key creative positions. It states that for a production to qualify as a Canadian program, at least 20 percent of the copyright must be owned by a Canadian.
In a statement, the Canadian Association of Broadcasters said Tuesday's decision by the CRTC “is balanced and adds some flexibility while recognizing the importance of Canadian ownership of intellectual property.”
It said the group is “also encouraged by the commission's commitment to reducing administrative burdens and aligning reporting requirements between foreign and Canadian broadcasters.”
