CRTC updates definition of Canadian content, placing limits on use of AI

The federal broadcasting regulator has released a new definition of Canadian content — and to qualify, humans, not AI, must retain creative control.

The new definition maintains a similar approach to the previous one by using a points system based on the number of Canadians holding key creative positions in a production to determine whether something is Cancan.

The definition of modernism expands the list of positions to include jobs such as showrunner, special effects director, and head of costume.

The CRTC says humans should be appointed to those roles, not AI.

The new rules state, “While AI can serve as a potential tool to assist in the creation of Canadian content, the Commission’s view is that humans should retain creative control to support economic opportunities and remuneration for Canadian creators.”

The new definition allows submissions to earn bonus points for cultural elements – for example, recognizable Canadian characters or settings, or stories based on Canadian publications.

Scott Shortliffe, vice-president of broadcasting for the CRTC, said, “What we’re trying to do in this definition is broaden it so that more productions can be certified as Canadian.”

“Long-term, we hope this will spur more collaboration, put more money into Canadian productions which will lead to more well-financed, high-level, bright Canadian productions, while also ensuring that you continue to get smaller point-of-view films and documentaries and television series.”

The CANCON definition, which applies to both traditional media and online streaming services, was released by the regulator earlier this year after holding a two-week public hearing on the issue.

The decision is part of the CRTC’s ongoing work to implement the Online Streaming Act, which updates broadcasting laws to capture online platforms like Netflix.

It introduces new disclosure requirements for large streaming platforms that will allow the CRTC to publish information about each streamer’s broadcast revenues and spending on Canadian content.

“Some online undertakings have expressed concerns that data disclosure could affect their level of competitiveness in the market,” the decision said.

The regulator said in its view, “It is unlikely that any harm that would result from disclosure of that data would outweigh the public interest.”

Shortliffe said the regulator does not view the disclosure requirement as particularly onerous.

“Canadian companies have needed to do this for a very long time,” he said.

The Motion Picture Association-Canada, which represents big streamers like Netflix, Paramount, Disney and Amazon, said Tuesday it is reviewing the decision.

Big foreign streamers are already challenging an earlier CRTC decision requiring them to contribute five per cent of their annual Canadian revenue to a fund dedicated to the production of Canadian content.

Apple, Amazon and Spotify are fighting the order, while the Motion Picture Association-Canada is challenging the section that requires them to contribute local news.

The CANCON decision also introduces a new minimum copyright requirement that applies in addition to the system for calculating dominant creative positions. It states that for a production to qualify as a Canadian program, at least 20 percent of the copyright must be held by a Canadian.

In a statement, the Canadian Association of Broadcasters said the decision issued Tuesday by the CRTC “is balanced, and adds some flexibility while recognizing the importance of Canadian ownership of IP.”

It added that the group “is also encouraged by the Commission’s commitments to reduce administrative burdens and equalize the reporting requirements of foreign and Canadian broadcasting companies.”