CRTC proceeding on the definition of Canadian content
On May 21, the WGC appeared before the Canadian Radio-television and Telecommunications Commission (CRTC) at its public hearing on the definition of “Canadian program”. This was one of the most important CRTC appearances in the Guild’s history.
This appearance was part of a CRTC public hearing process that ran May 14-27, which was itself part of a larger, multi-phase consultation process on the definition of Canadian content. This, in turn, was part of a yet larger regulatory plan to implement the Online Streaming Act, also known as Bill C-11.
The ultimate goal of Bill C-11 is to bring foreign streaming services like Netflix, Amazon Prime Video, and Disney+ clearly under the jurisdiction of the CRTC, so they can require the streamers to contribute to the production and presentation of Canadian programming. The definition of “Canadian program” is therefore pivotal to ensuring those contributions go to content that is actually Canadian-made — and Canadian-written — rather than production that looks more like the foreign location service production that many of these services are already doing in Canada.
The CRTC launched the proceeding to define “Canadian program” last November with a Notice of Consultation, in which it set out a number of its “preliminary views.” One of these was incredibly encouraging for us: the Commission proposed the showrunner be introduced into their point system for key creative personnel and, crucially, that it be a mandatory-Canadian role whenever the position exists in order for the production to be certified as Canadian.
If this proposal becomes regulation, it will be the first time a writing role is designated as a mandatory-Canadian position by the CRTC. Under the current 6-out-of-10-point system (which is required for a production to be eligible for certification as a Canadian program), the participation of Canadian screenwriters is not required for certification. The WGC has worked for many years to explain to policymakers how our industry works, how series television in particular is a “writer’s medium,” and why Canadian writers cannot be optional to the definition of Canadian audiovisual content. The Commission’s preliminary view on this point represents a major breakthrough for Canadian screenwriters.
The WGC supported the CRTC’s showrunner proposal, but there was more work to do. For one thing, the term “showrunner” has to be properly defined, and the WGC proposed a definition that ensures writing is a core part of the role. For another, the CRTC proposed to make showrunners a mandatory-Canadian position but not the rest of the screenwriters. As such, the WGC has argued that screenwriting points should also be required for Canadian content certification. Moreover, the potential for a significant shift in Canadian content commissioning from broadcasters based in Canada to streamers in L.A. means we think Canadian residency should play a role in who can earn points in the Commission’s new certification process.
We also argued that AI-generated content should not be considered Canadian content by the Commission, and opposed a CRTC proposal to allow screenwriting points to be given if at least 80 per cent of the writers were Canadian, down from the current 100 per cent threshold.
Finally, one of the most troubling CRTC proposals was the elimination of spending obligations on “programs of national interest” (PNI) — Canadian dramas (including kids and animation), long-form documentaries, and certain awards shows that are particularly challenging to finance, but which are central to showcasing Canadian creative talent and perspectives. In its proposal, the CRTC appears to suggest these genres are so well-represented on streaming services now that it’s not necessary to provide support. In reality, it’s non-Canadian dramas and the like that proliferate on these services, not Canadian productions.
We expect the CRTC to issue decisions on these issues in the fall, following which will be a “Consultation on tailored conditions of service,” which will finalize the individual contributions and requirements for traditional and online platforms in Canada. This consultation is scheduled to begin at the end of this year. The CRTC’s full regulatory plan is available here.
WGC resources:
- Full written submissions
- CPAC recording of CRTC appearance
- Responses to the CRTC’s requests for information (RFIs)
- Final written comments
Government relations priorities under the Mark Carney Liberals
The Liberals’ federal election victory this past spring under Mark Carney was driven in large part by trade and other tensions with the United States, so it’s no surprise that since then the government has been focused on trade issues in their first months in power. Prime Minister Carney issued a mandate letter in May setting out his government’s priorities, which included establishing a new economic and security relationship with the United States, protecting Canadian sovereignty, and building the strongest economy in the G7.
Conservative leader Pierre Poilievre had promised that, if elected, his government would defund the CBC and repeal the Online Streaming Act (Bill C-11), both of which would have been devastating to the domestic Canadian film and television sector and WGC members. The April 28 election result was a reprieve from that dire outcome.
There nevertheless is much to do on the government relations front going forward. For one thing, important public policy issues around artificial intelligence (AI) remain unresolved, particularly with respect to copyright. AI companies continue to seek access to copyrighted works in order to train their AI systems – or they simply gain access and train on those works without permission. The WGC continues to advocate for the “Three C’s” in this regard: consent, credit, and compensation, with an emphasis on the “consent” part. In terms of AI outputs, we continue to hold that AI is not an “author” under copyright law, nor should it be, and AI outputs should not be copyrightable works. Meanwhile, greater public transparency and accountability measures are needed with respect to these companies. A Parliamentary study on copyright is expected for this fall, presenting another opportunity for the WGC to advocate for these positions.
Meanwhile, Mark Carney has created a new “Minister of Artificial Intelligence and Digital Innovation” in his government, a role now held by Member of Parliament for Toronto Centre, Evan Solomon. This move, in combination with statements and signals by Carney and Solomon over the past few months, suggests a more pro-AI Liberal government than we saw under Justin Trudeau. Exactly what that means, however, remains to be seen, given that AI is such a broadly applicable technology. The Trump administration has released an AI policy statement that was incredibly friendly to the technology, going so far as to say that training on copyrighted materials should be permitted without any compensation whatsoever. What the U.S. does on this and related issues can be expected to continue to be influential around the world, notwithstanding the trade tensions that exist.
These tensions come into play in other ways including, potentially, the Online Streaming Act. The Liberal government recently cancelled the planned implementation of the Digital Services Tax as a direct concession to U.S. trade demands. The Digital Services Tax was unlikely to have a significant impact on WGC members, and we have no reason to believe that the Liberals are looking at similar treatment of other digital polices. The fact remains, however, that streaming platform regulation is also a trade irritant for the Americans, and Canada’s right to enact such regulation was specifically negotiated for in the Canada-United States-Mexico Agreement, or CUSMA, in a clause known as the “cultural exemption”. We will need to ensure that the Canadian government doesn’t make more concessions in an attempt to appease the White House, particularly around the cultural exemption or legislation that is protected by it.
Finally, the Liberals made some important campaign promises in the spring election, including to increase funding for the CBC/Radio-Canada, Canada Media Fund, and Telefilm Canada. More recently, however, they have also expressed a desire to see proposals for 15 per cent cuts in spending across departments and programs, including to those very cultural institutions that are so vital in the battle for Canadian cultural sovereignty. We will wait to see the federal budget this fall, but will strongly oppose any reduction in funding for the cultural institutions the government promised to support.
The WGC covered all of these issues in our recent submission to the Parliamentary Finance Committee as part of the 2025 pre-budget consultation.
The WGC will continue to look for every opportunity to make these points to government in the coming months, and will be advocating on your behalf in Ottawa.
