Corus, streamers disagree on funding CanCon at CRTC hearing

GATINEAU, Que.—The CRTC was presented with two distinct approaches to funding Canadian content (CanCon) at its hearing on Friday, May 16. Streamers want a two-tier system while one of Canada’s largest broadcasters seeks to level the playing field. The Motion Picture Association Canada (MPA-Canada) represents major American studios and the streaming services which carry some of their content. Corus Entertainment Inc. owns the Global television network, several specialty TV stations, radio stations and the Stack TV streaming service. MPA-Canada president Wendy Noss decried the “outdated” regulatory approaches the Canadian broadcasting regime currently operates under. She called for a new focus from the CRTC. “This regulation must be a flexible, incentive-based framework that requires global services to contribute equitably in supporting Canadian talent and stories in ways that align with the distinct nature of their services and their unique business models,” Noss told the panel. MPA-Canada has been calling for a system that would allow online streamers to meet their CanCon obligations through “direct spending” on productions when it works with their business model, rather than be forced to contribute to specific funds. Noss also advocated for an adaptable model of defining CanCon, one which would see more programs currently outside the system accepted into it. Currently, productions are deemed Canadian when enough points are garnered for participation by Canadian citizens in roles such as directors and screenwriters. While the CRTC suggests continuing with this points-based system, it is considering adding new creative positions and adjusting point allocations to be more flexible and better reflect evolving industry practices. Noss endorsed the notion that more creative positions behind the camera should be considered when determining whether a program is Canadian, however she rejected the idea that it should be done strictly through a points system. “Adding just a few positions to a more than 40-year-old list ignores today’s modern production landscape. A contemporary framework should encourage hiring key Canadian creative talent whose contributions are recognized by industry peers, professional academies, and guilds,” said Noss. She also called for a contribution regime that would differentiate the financial responsibility of domestic and international players. Canadian broadcasters would keep their current system while global streamers would have lower requirements. Central to their argument is the language of the Broadcasting Act. MPA-Canada notes that it requires foreign online undertakings to "make the greatest practicable use” of Canadian “creative and other human resources” in the production of Canadian programs. Whereas Canadian broadcasters must “make maximum use, and in no case less than predominant use” of Canadian resources. “This difference was intentional,” argued Noss. READ MORE: -- New CanCon model should encourage partnerships with Indigenous broadcasters, CRTC hears -- CAB calls for streamers to fund news production at CRTC hearing; Streamers reschedule appearance -- Streamers ‘disappointed’ in five per cent base contribution requirement Earlier in the day, Corus co-CEO Troy Reeb dismissed talk of a two-tier contribution regime. “Back in the old closed system, supporting policy objectives was Canadian broadcasters' job alone and it was a burden we could bear,” he argued. “But those days are over and they’ve been over for more than 10 years. In today’s open system, domestic players remain strictly regulated while their large digital competitors are not.” Repeating its proposal from the previous Online Streaming Act hearing in 2023, the Calgary-based broadcaster called for all domestic and foreign services, traditional or online, with revenues greater than $25 million a year to be required to contribute 20 per cent towards the broadcasting system. Corus vice president and associate general counsel Matt Thompson said the CRTC’s proposals for redefining CanCon are “workable,” they would conflict with the system used by the Canadian Audio-Visual Certification Office (CAVCO), a framework that provides CanCon support through federal tax credits. The broadcaster argues that showrunners should not be considered in ascertaining if a production is Canadian, and raised concerns around productions with fewer key creative roles than there are points in the CanCon system. Corus endorsed the CRTC’s position on programs of national interest (PNI) requirements. Doug Spence, vice president of finance for the company, said it has outlived its usefulness. “We agree with the CRTC’s preliminary view that the current approach to PNI is no longer needed,” he stated. “PNI spending quotas are relics of a closed system where the CRTC regulated channel formats. They are increasingly costly and thus unprofitable burden that struggling Canadian broadcasters can no longer afford.” The hearings will resume Tuesday morning. ppark@thewirereport.ca

Corus, streamers disagree on funding CanCon at CRTC hearing

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By Paul Park
| May 17, 2025

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