CRTC launches Streaming Act consults on CanCon definition, radio regulations

The CRTC is working on redefining “Canadian program,” also known as CanCon, as well as trying to loosen regulations for radio stations. As it continues to work on updating the Canadian broadcasting framework, rolling out new regulations under the Online Streaming Act, the regulator issued two separate notices of consultation on Friday, Nov. 15. The CRTC is asking stakeholders to answer questions regarding the changing content production landscape and radio ecosystem. It also seeks to consider how artificial intelligence fits into the conversation. At the heart of the CanCon consultation is a proposal to modernize the existing points system used to determine whether a production qualifies as Canadian. Currently, the system focuses on the Canadian citizenship or permanent residency of the people involved in a production, such as directors and screenwriters, and awards points that go toward determining whether or not their production qualifies. While the CRTC suggests it continue with this focus, it is considering adding new creative positions and adjusting point allocations to be more flexible and better reflect evolving industry practices. The commission has proposed expanding the current 10-point system, in which productions need to earn at least six points to be considered Canadian, to a 15-point system, where productions need to earn at least nine points. The new criteria would bring in several other positions, including showrunner, head of costume design, key make-up or hair artist, and visual effects director. The notice of consultation also proposes allowing for a degree of foreign participation in certain roles filled by multiple people, recognizing that the current requirement – that all people sharing a position must be Canadian – can disincentivize international collaboration. Specifically, the CRTC proposes lowering the threshold of Canadians holding the same title in one particular position to 80 per cent in order for a point to be earned. “Canadians would still need to be firmly in control of the creative process, but this approach would allow a production to make use of foreign talent, where appropriate, and pursue international partnership opportunities,” said the CRTC in its notice of consultation. In addition to Canadian creative control, the CRTC is looking at financial control, exploring the inclusion of intellectual property rights within the new definition. This would help ensure Canadians can benefit from the monetization of a program, it said. “The commission is not presenting a preliminary view on this, but we are provoking questions,” said Scott Shortliffe, the CRTC’s executive director of broadcasting, during a technical briefing. The regulator is asking stakeholders to suggest flexible models that retain intellectual property rights while incentivizing collaborations, foreign equity investments, and ensure the “exportability” of Canadian programming. “We are trying to spark a discussion around this – without presenting a preliminary view – but saying that the commission is open to considering different models, and our core question is, what will have the best result for Canadian viewers?” “We anticipate that we will get many comments on these questions, and certainly some fierce debate,” continued Shortliffe. Program spending, national interest requirements under review The CRTC is also reviewing its Canadian programming expenditure (CPE) and programs of national interest (PNI) requirements. It proposes that both online and traditional audio-visual undertakings, foreign or domestic, making at least $25 million in Canadian gross broadcasting revenues per year be given CPE requirements, meaning they would have to direct a certain portion of their revenues toward Canadian content. Almost all licensed traditional broadcasters devote a minimum percentage of their gross revenues from the previous broadcast year to Canadian programming, but the required levels vary for each broadcaster. Online undertakings have already been given a base contribution requirement of five per cent of their revenues. The CRTC is asking if they should have the same requirements as traditional broadcasters. On the PNI side, “the commission is posing the question whether the concept is still relevant today,” said Shortliffe. PNI requirements are a subset of CPE but are focused specifically on programs that are "central vehicles for communicating Canadian stories and values” and “are also generally expensive to produce and difficult to monetize,” according to the CRTC. Shortliffe noted that the on-demand nature of online platforms already feature programs which were historically considered of “national interest,” such as drama and documentaries. Recognizing the evolving content landscape, the CRTC is proposing a shift away from PNI and prioritizing news programming instead, “which is risky to produce and difficult to monetize.” “News is not considered part of the program of national right now, and yet, we are aware that news is increasingly a vital need for Canadian viewers,” said Shortliffe, “so we are asking questions around that.” Data disclosure requirements, artificial intelligence considerations on the table To support transparency and monitor the policy’s effectiveness, the CRTC proposes publicly disclosing data related to broadcasting undertakings' revenues and programming expenditures. Shortliffe acknowledged that this raises questions about confidentiality, inviting stakeholders to comment on the collection and disclosure of this information. The CRTC also proposes that artificial intelligence and its impacts should be considered, raising questions around whether AI-generated content can be considered Canadian and, if so, to what extent. “When the Online Streaming Act was passed in 2023 it did not mention artificial intelligence, because, very honestly, that was an emerging issue,” said Shortliffe. “In the time since it passed, the commission has become convinced that this is an issue that we must take into account when we're looking at definitions of Canadian content going forward.” “We're not taking a position for or against artificial intelligence in broadcasting, we're that it is affecting the broadcasting industry and we need to understand how as we're defining Canadian content.” Separate consultation launched on radio requirements In its other proceeding, the CRTC is looking at the requirements for radio and audio streaming in Canada, with an eye on making sure radio stations "can continue to support their communities with the information and music they want," said the regulator's chair and CEO Vicky Eatrides in a press release. That look includes examining how the commission should define audio content and support Canadian music. The CRTC did not detail many specifics on its examination of radio and audio requirements, except to say that the consultation should help update the rules radio stations have to follow "so that they have more flexibility," and so that the commission can "reduce the administrative burden faced by radio broadcasters." The regulator is looking for opinions on providing flexibility, licence terms, current and proposed non-compliance measures, licence renewal processes, and reporting requirements. Parties the CRTC is looking to hear from on the consultation include traditional commercial, community, campus, and Indigenous radio stations, AM/FM stations, Canadian creators, artists, cultural communities, Indigenous peoples, members of equity-deserving groups, and official language minority communities. phalentm@thewirereport.ca With files from Hannah Daley

CRTC launches Streaming Act consults on CanCon definition, radio regulations

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By Phalen Tynes-MacDonald
| November 15, 2024

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