The federal broadcast regulator has loosened its long-standing rule that restricts what counts as Canadian content for television and online streaming services, a move it hopes will spur “more money” into Canadian productions.
The Canadian Radio-television and Telecommunications Commission (CRTC) uses a points system based on key creative roles in the audio-visual sector, such as director, screenwriter, photographer and music composer, to determine whether a production has enough Canadian involvement.
The commission announced Tuesday that it will shift from a mandated threshold of six out of 10 points to a percentage-based threshold, saying the change “will allow the framework to apply to the widest variety of productions without unduly impacting smaller productions.”
Previously, a production needed to have a majority Canadian copyright ownership to qualify as Canadian. Under the new policy, the bar drops to 20 per cent. At the same time, foreign companies will face stricter requirements to staff key creative positions with Canadians.
“We hope we have opened up a path for increased collaboration between foreign streamers and Canadian producers to create great content,” said Scott Shortliffe, vice-president of Broadcasting at CRTC. “We balance that with saying that it has to be based on having a high percentage of Canadian creative talent.”
The CRTC’s decision follows a series of public hearings it held to implement the Online Streaming Act, legislation that updated broadcasting laws to capture online platforms.
In 2024, the CRTC ordered large foreign streamers to contribute five per cent of their annual Canadian revenues to funds that support Canadian content, including local TV news. Companies such as Apple, Amazon and Spotify have challenged the order in court, arguing in part that the Commission should not require payments before deciding how Canadian content will be defined.
The broadcast regulator said in its policy announcement that it would move away from a minimum threshold of six points for key creative positions filled by Canadians and other Canadian creative elements, calling the previous system “challenging,” particularly for smaller productions that may not use all key creative roles.
Under the new rules, a production must earn at least 60 per cent of the total points to qualify as Canadian content. If Canadians hold 50 per cent or less of the program’s copyright, the overall production must earn at least 80 per cent of the points. Bonus points can be earned if the production has Canadian musical selections, written works or characters and settings.
“What we’re trying to do in this definition is broaden it so that more productions can be certified as Canadian. Long term, what we hope that will do is it will spur more collaborations, more money going into Canadian productions,” Shortliffe said.
Other requirements for a production to qualify as Canadian largely stay the same, including that it must be produced by a Canadian production company and that at least 75 per cent of its production service costs must be paid to Canadians.
Shortliffe said the CRTC will soon release a second decision regarding the minimum spending requirements for broadcasters on Canadian content.
The CRTC does not offer grants or contributions to organizations for broadcast and streaming program development.
Michael Geist, the Canada Research Chair in Internet and E-Commerce Law, said the regulator’s move highlights what the Canadian-content rules are really designed to do.
“My frustration is that whenever there are policy debates about these issues, people turn around and try to argue that it’s about telling Canadian stories,” Geist said. “But it seems to me what the regulator is saying is this system is fundamentally about trying to ensure Canadian employment in this area.”
