CRTC expands definition of CanCon, sets minimum level for copyright ownership

On Tuesday, Nov. 18, the CRTC released its long-awaited changes to how it defines Canadian content (CanCon) in the audio-visual sector, reflecting changes brought about by the passage of the Online Streaming Act. Since launching a consultation on the matter almost exactly a year ago, the CRTC says it received 480 written submissions from stakeholders. It also held a public hearing with 78 parties appearing. The new decision addresses four key issues: the certification framework itself; artificial intelligence (AI); data collection and publication; and reporting requirements. A future policy directive will look at Canadian program expenditures (CPE), including spending on news; and at supports for the independent production sector. The regulator says it will be expanding the points system that is used to recognize CanCon, allowing more key creative positions to be included. Following through on the preliminary view it gave at the start of the proceeding, the commission is adding several new roles to the list of key creative positions: showrunner; heads of departments for costume design, make-up artists, and hair artists; and visual effects director and special effects director. The CRTC is also doing away with the 10-point system, in which productions needed to earn at least six points to be considered Canadian — an approach it said “can be challenging, especially for smaller productions that may not make use of all possible key creative elements.” It will now switch to a percentage threshold, rather than a specific number of points a production must achieve. That threshold will vary depending on how much of the copyright is owned by Canadians, the CRTC noted. Sliding-scale approach to copyright ownership For a production with majority Canadian copyright ownership to qualify as Canadian, the CRTC will require it to hit at least 60 per cent of the maximum possible points. “However, when 50 per cent or less of the copyright in the program is retained by Canadians, the commission finds that a greater number of Canadian key creative elements must be present in a production and that a greater number of points must be attained,” the regulator wrote. If the Canadian copyright ownership of a production is between 20 and 50 per cent, that point threshold will increase to 80 per cent. Canadian copyright holdings must not fall below 20 per cent for the production to still qualify for CanCon status. The CRTC said these rules will assist when Canadian creators work with international companies on co-productions. “For greater clarity, for the production to qualify and be certified as a Canadian program, the number of points awarded must always reach or exceed the required threshold, regardless of the value of the denominator, which may change based on the specific type of production and the positions and functions filled and performed by Canadians (as such, scores of 6/10, 7/11, 8/12, 8/13 and 9/14 would reach or exceed the 60 per cent threshold),” the CRTC explained. While the system will continue to be based on the Canadian citizenship or permanent residency of the people involved in a production, there will also be a bonus point awarded for the use of Canadian characters and settings. Using Canadian source material will also garner a bonus point. The regulator says it will be flexible with the points system when non-Canadians are working on co-productions. Currently points are only awarded if all creatives in a role are Canadian; the new rules will lower that to 80 per cent when non-Canadians are employed. The CRTC expects this to pay dividends looking ahead. “This could facilitate mentorship opportunities that strengthen Canadian productions through the sharing of expertise,” the document says. “Mentors from diverse backgrounds could contribute by sharing distinct perspectives, values and visions, thereby advancing inclusion and innovation at each step of a production.” Existing production cost requirements remain Turning to production costs, the CRTC is keeping the current requirement that 75 per cent of a production’s service costs be paid to Canadians. A similar 75 per cent ratio is established for post-production and laboratory costs. “The commission further recognizes that the key creative positions used in any Canadian production need to be staffed by humans and not by AI,” the policy document states. “Having heard the concerns about the use of AI in creating content and the transparency of AI use, the commission is striking a balance by recognizing the usefulness and potential benefits of AI as a creative tool to assist producers and creators, while also recognizing the importance of human control being maintained." AI may be used as a tool but key creative roles must be filled by humans, the CRTC confirmed. Financial reporting rules expanded to foreign streamers Online streamers will now be required to report their Canadian revenues and CPE on an annual basis, a measure that Scott Shortliffe, CRTC vice president of broadcasting, said “leveled the playing field” between foreign platforms and Canadian broadcasters. “We don't see it as especially onerous,” Shortliffe told reporters during a technical briefing. “Canadian companies have been required to do this for a very long time. We're expanding it to say that we think it should cover foreign streamers in Canada as well, but only for the streamers that have a very large footprint in Canada.” He emphasized that these rules only apply to companies that earn more than $25 million in Canadian revenue. “There's a public interest in seeing what are the Canadian programming expenditures of large companies in Canada,” said Shortliffe. According to Shortliffe, “in the coming days or weeks,” the CRTC will be launching another consultation on the regulations it intends to implement with this decision. “At that time, we will announce an effective day when the regulation takes effect. It won't be until sometime in 2026,” he explained. Mixed initial reactions from industry groups, advocates Kevin Desjardins, the president of the Canadian Association of Broadcasters (CAB), says the decision aligns with what the association was looking for. “We think it’s a balanced approach and it will add some flexibility to the definition of Canadian content, while still maintaining the importance of Canadian ownership of ,” he said in a phone interview with The Wire Report. Desjardins says he believes the decision responds to most of the concerns his members had about defining CanCon. During the consultation, CAB had put forward a position that 60 per cent of key roles in CanCon production should be fulfilled by Canadians. He said he’s happy to see that percentage reflected in the CRTC’s decision. CAB had also raised concerns about the administrative burden associated with the reporting process. In its decision, the CRTC said it will alleviate some of that burden by streamlining the reporting requirements. “We’re encouraged by the commission’s commitments to reducing administrative burden and leveling the reporting requirements of foreign and Canadian broadcasting companies,” said Desjardins. The Alliance of Canadian Cinema, Television and Radio Artists (ACTRA) had some unanswered questions. “We still don’t know if Canadian lead performers will get the weight they deserve, or if streamers and broadcasters can bend the rules without giving Canadians real creative leadership and key roles,” national president Eleanor Noble was quoted as saying in a news release. “The next ruling on spending obligations is where we shall see if this framework will create actual opportunities for Canadian performers.” Digital rights advocacy group OpenMedia was disappointed with the CRTC's decision to limit the bonus point awarded for using a Canadian setting to only if the story takes place entirely within Canada. "Today the CRTC failed to recognize Canada,” said OpenMedia executive director Matt Hatfield in a news release. “Every Canadian’s life is deeply intertwined with the lives of non-citizens. Many of us started our journey in this country as students or non-citizens; many of us have friends, family, confidants and sparring partners spread around the world, including in the U.S. Yet any story that features these ties cannot receive a point for being a Canadian story. Canadians told the CRTC through this consultation that we want stories that represent our lives as they actually are to be recognized as Canadian. Today’s decision does just the opposite; by restricting story-based recognition on such narrow terms, it encourages the telling of narrow, nostalgic, and fundamentally unrealistic stories about what Canada is and the lives we live within it.” The Canadian Media Producers Association (CMPA) applauded the decision's emphasis on copyright ownership. "We are encouraged to see the commission focus on Canadian ownership as a key tenet of domestic content production, as well as plans to implement guiding principles to ensure fair negotiations among production partners," the group wrote in a statement on X. "We look forward to the release of the second part of this decision, which will outline contributions to Canadian programming, including support for the independent production sector." ppark@thewirereport.ca With files from Maria Collins and Phalen Tynes-MacDonald

CRTC expands definition of CanCon, sets minimum level for copyright ownership

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By Wire Report Staff
|November 18, 2025

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CRTC expands definition of CanCon, sets minimum level for copyright ownership

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