The CRTC has unveiled its latest efforts to modernize the Broadcasting Act, setting new rules that will exempt private Canadian broadcasters generating less than $25 million in annual revenue from CPE (Canadian Programming Expenditures) requirements, while establishing a new funding framework for SEIs (Services of Exceptional Importance).

The new CPE framework will apply to both private Canadian broadcasters (Canadian broadcasting ownership groups) and online streaming services (unaffiliated online broadcast ownership groups) operating in Canada with annual Canadian broadcasting revenues of $25 million or more. Under the framework, they’ll be required to contribute 25% of their annual Canadian broadcasting revenues to CPE, providing relief from current requirements, which range from 30% to 45%. The CPE requirement for online streaming services is being set at 15%, which includes their 5% base contribution requirement established in 2024 and still before the courts.

The commission says recognizing that private Canadian broadcasters and online streaming services have different business models, scale, and reach, the commission is of the view that large private Canadian broadcasters and large online streaming services with annual Canadian broadcast revenues of $100 million or more “are better suited than their smaller counterparts to make more significant contributions to certain key policy outcomes.”

Accordingly, those companies (estimated to be fewer than a dozen) will be required to invest in French-language programming and programming made by official language minority communities (OLMCs). Large private Canadian broadcasters will also be required to contribute at least 15% of their CPE to support Canadian news.

“This decision sets, as a guideline, that all large private Canadian broadcasters and large online streaming services will devote approximately 2% of their annual CPE to OLMC programming. Large private Canadian broadcasters and large online streaming services will further be required to invest in production partnerships with Canadians that hold the majority of the copyright in the Canadian programming…and contribute to a new fund for services of exceptional importance,” the decision states.

The commission says medium-sized private broadcasters and online streaming services with annual Canadian broadcasting revenues of at least $25 million, but less than $100 million, are additionally being granted full flexibility in how they want to allocate their CPE, to direct production expenditures and/or to funds, “in the way that best aligns with their business models.” Medium-sized private Canadian broadcasters will also be able to count up to 10% of their CPE toward spending on international marketing and the promotion of Canadian programs.

“This measured flexibility will help to ensure that Canadian programming remains visible and competitive in an increasingly global and digital marketplace, while supporting the participation of medium-sized players in the broadcasting system,” the commission stated.

Services of Exceptional Importance Fund (SEIF)

The commission is hoping to ensure the long-term sustainability of SEIs – like CPAC, TV5 and AMI-tv – through the establishment of a dedicated Services of Exceptional Importance Fund (SEIF), which will be available to those already benefitting from mandatory distribution. Broadcast ownership groups with Canadian revenues of $100 million or more (with the exception of Canada’s public broadcaster) will contribute 1.55% of their audio-visual revenues to the SEIF, relieving BDUs from paying mandated wholesale rates.

The CRTC says the funding model ensures financial responsibility is distributed equitably across programming undertakings, broadcast distribution undertakings (BDUs), and online undertakings.

Discoverability

The commission has also established a framework for discoverability of Canadian and Indigenous content and services, including in French, English, and Indigenous languages, with broadcast undertakings required to report back regularly on their progress.

The regulator’s efforts will include the formation of a voluntary working group to study and develop standards for the use of metadata and metrics within the audio-visual industry.

The commission says it will periodically review the effectiveness of discoverability commitments across the broadcast sector and adjust the framework if needed, with its first review to take place after three years of measurement and reporting.

“Today’s decisions are about building a stronger broadcasting system,” said CRTC Chair Vicky Eatrides, in a release. “We are taking action to ensure stable funding for Canadian and Indigenous content, and to help make it more discoverable.”