CRTC Declares AI No-Go for Canadian Content, Updates Rules NOW

JUST ANNOUNCED: The Canadian Radio-television and Telecommunications Commission (CRTC) has unveiled a crucial update to the definition of Canadian content, mandating that humans must retain creative control over productions to qualify. This significant shift comes as part of ongoing efforts to strengthen Canadian cultural presence in media, with implications for both traditional and online platforms.

The updated guidelines, released earlier today, emphasize that key creative roles—including showrunners, special effects directors, and heads of costuming—must be held by individuals, not artificial intelligence. The CRTC’s Scott Shortliffe stated, “While AI may serve as a potential tool to assist in the creation of Canadian content, the Commission is of the view that humans should hold creative control to support economic opportunities and remuneration for Canadian creators.”

This revamped definition uses a points system to assess Canadian content eligibility, expanding the criteria to include new roles that enhance creative contributions. Productions can now earn bonus points for integrating identifiable Canadian elements, such as characters or stories rooted in Canadian culture.

Shortliffe highlighted the broader vision behind this move: “What we’re trying to do in this definition is broaden it so that more productions can be certified as Canadian. Long-term, we hope this will spur more collaborations and funding for high-quality Canadian productions.”

The CRTC’s decision follows a two-week public hearing earlier this year, addressing concerns from major streaming platforms regarding their obligations under the new rules. The Online Streaming Act serves as a framework for these regulations, aimed at modernizing broadcasting laws to encompass services like Netflix, Amazon, and Disney.

In conjunction with the content definition update, the CRTC is introducing new data disclosure requirements for large streaming companies. This mandates that these platforms report their annual revenues and spending on Canadian content. While some companies have voiced concerns over potential competitive disadvantages, the CRTC asserts that the public interest outweighs these issues.

The Motion Picture Association-Canada, representing major streaming entities, stated it is currently reviewing the CRTC’s decision. Notably, foreign platforms are already contesting prior rulings that require them to allocate five percent of their Canadian revenues toward funding Canadian content production.

Additionally, the CRTC’s new regulations include a minimum copyright stipulation, necessitating that at least 20 percent of copyright for a production be held by a Canadian. The Canadian Association of Broadcasters responded positively to the decision, stating it reflects a balanced approach while emphasizing the significance of Canadian ownership.

As these developments unfold, stakeholders are closely monitoring the implications for the Canadian media landscape. Expect more updates as the CRTC works to implement these crucial changes in the coming weeks.

This is a pivotal moment for Canadian content creators and the industry, with the potential to reshape how stories are told and who gets to tell them. Share this story to keep others informed about these critical updates!