A new definition of what qualifies as “Canadian content” has been unveiled, and it draws a firm line in the sand: artificial intelligence need not apply.
The broadcast regulator’s modernized approach, similar to its predecessor, centers on the human element – specifically, the number of Canadians holding key creative roles within a production. This isn’t simply about counting bodies, however.
The list of qualifying positions has been expanded to encompass a wider range of crucial roles, including showrunners, special effects directors, and even the head of costuming. But a critical stipulation has been added: these positions must be filled by people, not algorithms.
Regulators acknowledge AI’s potential as a creative tool, a helpful assistant to producers and creators. However, concerns about its unchecked use have prompted this decisive exclusion from the definition of Cancon.
The new rules also incentivize productions to weave distinctly Canadian elements into their narratives. Bonus points will be awarded for identifiable Canadian characters, settings, or stories adapted from Canadian publications.
The goal isn’t simply to maintain the status quo, but to broaden the scope of what can be certified as Canadian. This expansion is intended to foster greater collaboration and investment in Canadian productions of all sizes.
This updated definition applies equally to traditional broadcasting and the rapidly evolving world of online streaming services. It’s a key component of implementing the Online Streaming Act, designed to bring platforms like Netflix under the same regulatory umbrella.
Large streaming services will now face new disclosure requirements, with the regulator publishing data on their Canadian revenues and spending. This move aims to increase transparency within the industry.
While some streaming companies have voiced concerns that this data disclosure could impact their competitive edge, the regulator believes the public interest outweighs those concerns, particularly given the size and influence of these platforms.
The decision also introduces a new copyright requirement. To qualify as Canadian, a production must now have at least 20 per cent of its copyright ownership held by Canadian entities.
Industry groups have largely welcomed the decision, praising its balance and flexibility. There’s particular encouragement surrounding commitments to reduce administrative burdens and level the reporting playing field for both Canadian and foreign broadcasters.
This move comes amidst ongoing challenges from major streamers regarding previous rulings, including a requirement to contribute five per cent of their Canadian revenues to Canadian content funds. Legal battles continue on multiple fronts.
