CRTC proceeding on the definition of Canadian content
In January, the WGC submitted our written comments on the definition of “Canadian content” to the Canadian Radio-television and Telecommunications Commission (CRTC) for its latest consultation in implementing the Online Streaming Act (formerly Bill C-11). For many reasons, this is one of the most vitally important consultations in the WGC’s history.
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” 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 supports the CRTC’s showrunner proposal, but there is more work to do. For one thing, the term “showrunner” has to be properly defined, and the WGC has proposed a definition that ensures writing is a core part of the role. For another, the CRTC proposes 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 is 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. In our submission, we have insisted the Commission cannot take a chance on the fate of these vital categories of Canadian programming.
You can read our full submission here.
Court appeal of base contributions
In one of its first policies implementing the Online Streaming Act, the CRTC required online streaming services that make $25 million or more in annual revenues and that are not affiliated with a Canadian broadcaster to contribute five per cent of those revenues to certain Canadian funds, including the Canada Media Fund (CMF). The Commission labeled this a “base contribution” to funds.
A number of streamers objected to this requirement, and several appealed the CRTC’s decision to the Federal Court of Appeal. In December 2024, the court agreed to hear the appeal, and a stay of the Commission’s base contribution order was issued, meaning the streamers won’t have to make payments towards the base contribution until the appeal is decided. This has raised questions about what the stay of the CRTC order means for WGC members.
The answer may be, not much, at least not yet.
Firstly, in its decision of June 2024, the CRTC gave the streamers an enormous amount of runway before payment of the base contributions actually came due. The Commission said the payments would have to be made by the end of the broadcast year for 2024-2025, which is August 31, 2025. This is an annual requirement, and there was no obligation for it to be paid in regular, monthly installments. As such, no money is due until August 31, 2025. While we don’t know when the Federal Court of Appeal will issue its decision, the parties have agreed to an expedited schedule, with a hearing expected in June 2025.
Secondly, the base contribution itself wound up falling far short of our hopes for supporting the work of WGC members. The CRTC estimated a total of $200 million in annual base contributions, but this included both audiovisual and audio contributions, the latter of which are destined primarily to supporting Canadian music. The amount also included both English- and French-language funding. Of the remainder, only two per cent was earmarked for the CMF, but the CRTC further allowed for streamers to allocate up to 75 per cent of that for their own direct investments in 6-out-of-10-point production (which doesn’t guarantee engagement of Canadian screenwriters). After all that slicing and dicing, a rough estimate of expected funding to Canadian English audiovisual production that engages WGC members is not large — somewhere in in the tens of millions of dollars. This was never going to be game-changing money for our sector.
The true promise of the legislation still lies in the future, with a definition of Canadian content that requires the showrunner being Canadian, followed by direct expenditure requirements imposed on streamers to invest in that content. These requirements have the potential to be significantly bigger, with much more investment going to programming written by WGC members.
Of course, we still risk a negative court outcome that could hamper the CRTC’s larger efforts to regulate the streamers. But, ultimately, the stay of the base contribution may not have an enormous impact on the big picture for WGC members. Either way, the fight will go on.
