The CRTC has released an updated definition of what qualifies as an audiovisual “Canadian program,” recognizing a broader range of creative roles, among other measures, to allow more programs to more easily be certified as Canadian.

Informed by an extensive public consultation process, including 480 submissions and a public hearing that saw 78 groups – including broadcasters and online streamers – present, Tuesday’s decision is the first of two major policy publications stemming from the consultation. The second will address spending on Canadian programs, including news content, and ongoing support for the independent production sector.

Under the current framework, a production must be awarded a minimum of six points to meet the definition of “Canadian program.” With that approach challenging for smaller productions that may not make use of all possible key creative elements, the CRTC’s new definition establishes a minimum percentage threshold (60%) based on the number of points a production attains, as opposed to a minimum number of points.

For example, a live action production that uses the key creative positions of Director (2 points), Screenwriter (2 points), First Lead Performer (1 point), Second Lead Performer (1 Point), Director of Photography (1 point), Music Composer (1 point) and Picture Editor (1 point) would be awarded nine out of nine points if all key creative positions are filled by Canadians. However, if only the Director (2 points), Screenwriter (2 points) and First Lead Performer(1 point) positions are filled by Canadians (and the others by non-Canadians), the production would be awarded five out of nine points, achieving a percentage of 55.6%.

To qualify as Canadian, for live action productions – Director or Screenwriter, and either the First Lead Performer (or first voice) or Second Lead Performer (or second voice) must be Canadian. For animated productions, Director or Scriptwriter and Storyboard Supervisor, and either the First Voice (or first lead performer) or Second Voice (or second lead performer), and Key Animation and Camera Operator must be Canadian. Where each of the key creative positions of Director, Screenwriter, and Scriptwriter and Storyboard Supervisor is filled by multiple individuals, points will be awarded where at least 80% of all individuals filling a given position are Canadians.

The modernized certification framework additionally introduces bonus points, awarding one bonus point where identifiable Canadian characters and settings are included in a production. Productions can also earn bonus points for use of Canadian written works as source material (novel, short story, graphic novel, novella, play, biography, autobiography, or poem), and if more than 50% of pre-recorded or pre-existing musical selections featured in the production are Canadian.

Copyright

For Canadian copyright ownership, no less than 20% of the copyright in the program must be retained by a Canadian. Where Canadians own not less than 20% and not more than 50%, for the production to qualify as a Canadian program, it must attain not less than 80% of the maximum number of points possible for the production. Where Canadians own more than 50% of the copyright in a program, it must attain not less than 60% of the maximum number of points possible.

For programs with 100% Canadian copyright ownership, the commission maintains that the roles of producer, co-producer, line producer and production manager must be occupied by Canadians. No less than 50% of persons occupying the roles of producer, co-producer, production manager and line producer, and all producer-related roles (such as executive producer, associate producer and supervising producer), must be Canadian.

“Minimum Canadian ownership requirements will be at least 20% of the copyright must be owned by Canadians,” Scott Shortliffe, the CRTC’s Vice-President, Broadcasting, told a media technical briefing. “This will provide a path for non Canadian companies to share copyright and production.”

“However, this will be balanced with a requirement to hire more Canadian creators and talent when the share of copyright owned by a Canadian is below 50%,” he added.

Time Credits

Currently, when a production is certified as Canadian, it also receives a time credit that broadcasters use to meet certain regulatory requirements, representing the percentage of time that a broadcaster can claim as Canadian content in its program logs. Supplementary time credits are also granted for productions dubbed in Canada using Canadian resources and for certain drama productions that hire Canadians for all key creative positions.

With time credits “generally unsuitable in an on-demand environment, where programs are accessible by viewers at a time of their choosing rather than at any scheduled time,” the commission decision concludes that “time credits no longer represent a strong incentive for broadcasting Canadian programming. In addition, the removal of time credits would reduce the administrative burden on certain broadcasters by simplifying reporting when they file their program logs.”

The CRTC will discontinue the use of time credits with the exception of those for programs dubbed in Canada using Canadian resources.

Streamlining reporting

The decision also takes steps toward alleviating some of the burden for broadcasters where there is duplication in the collection or publication of data as well as extending the requirement to submit annual production reports to streaming services with annual Canadian gross broadcasting revenues of $25 million or more.

In an effort to level disclosure requirements, the commission will eliminate requirements to file and disclose annual aggregate financial returns imposed on vertically integrated broadcasters; and discontinue publication of individual discretionary services’ financial summaries, starting with the 2025-26 broadcast year.

To implement its decisions regarding the criteria for defining “Canadian program,” the commission intends to issue a notice of consultation calling for comments on the proposed regulations and consequential amendments to the Television Broadcasting Regulations, 1987 and Discretionary Services Regulations.

As part of its proceeding, the commission sought comments on the growing use of AI-generated content and on the appropriateness of considering AI-generated content as Canadian, determining that “key creative positions and functions of the modernized certification framework should be filled and performed by humans.”

“While AI may serve as a potential tool to assist in the creation of Canadian content, the Commission is of the view that humans should hold creative control to support economic opportunities and remuneration for Canadians creators” the decision states.

“Longterm, what we hope that it will do is it will spur more collaborations, more money going into Canadian productions, that will lead to more better financed, high level, glossy Canadian productions, as well as ensuring that you continue to get small point of view films and documentaries and television series,” said Shortliffe.