Defining Canadian Content: Approaches Taken in Other Jurisdictions and Lessons Learned for Canada

*Cliquez ici pour le français*

A new study released today demonstrates how a modern, flexible approach to the definition of ‘Canadian programs’ can bring more benefits to Canadian creative workers, promote Canadian culture, support Canadian storytelling, and stimulate the ongoing development of Canada’s world-class production sector.

TORONTO, ONTARIO, MAY 12, 2023

Canada’s new Online Streaming Act sets out expectations for how global streaming services should contribute to “Canadian programs” in order to help meet Canadian policy goals.  The way in which this contribution is defined for the future will be determined by the Canadian Radio-television and Telecommunications Commission (CRTC). The existing definition of Canadian programs was created more than thirty years ago to apply to a market completely different from that which exists today.

To help inform the CRTC’s mandate to create a new flexible, forward-looking framework for global streamers, MPA-Canada commissioned a comprehensive study by MDR Communications to look at how Canada’s system for defining national content compares to other jurisdictions, with three main objectives:

• Document how other countries define national content (i.e., as found in their national certification systems, tax incentive or funding programs).
• Assess whether international systems which allow a broad range of factors to be considered in their definitions lead to more opportunities for national talent (i.e., key creatives, cast and crew) and creative ecosystems.
• Consider lessons learned about how a modern, more flexible approach to defining Canadian content could help achieve Canadian policy objectives.

Key Findings

All 19 programs examined across 10 national systems allow producers wider flexibility than is currently allowed under the Canadian system to qualify as national content. In their definitions, these content systems recognize both the economic and cultural value of screen content.

• Most jurisdictions do not require the production company to own the copyright in the production beyond the production stage. This approach encourages global producers to invest and create content in those countries, employing national talent, which can be shared with audiences around the world.  Where ownership requirements exist, they are limited.
• The Canadian system for defining national content is unusually narrow and does not reflect the maturity and world-class excellence of the Canadian production sector. It provides no room for consideration for broader cultural criteria. This means Canada is out of step with global production trends and every other jurisdiction examined.
• By using such a narrow definition of national content, Canada is losing opportunities to promote Canadian stories and culture to the world.
• More flexibility in the Canadian content system would support a helpful evolution of business and financing models in Canada, which would be more in keeping with the maturity of the sector and matching the level of sophistication of its production companies.

Recommendations

The study finds that modernizing Canada’s approach to be more in line with that of other jurisdictions would deliver a greater array of benefits for Canada.

Specific recommendations include:

• Removing the current copyright ownership requirement as a determinant factor, allowing Canadian producers the flexibility to decide with financing partners the best business deals for their respective companies.
• Expanding the Canadian points-based system to include cultural criteria, with particular emphasis on meeting Canada’s cultural objectives.
• Expanding the Canadian points-based system to recognize the contributions of all Canadian cast and crew.
• Revising the Canadian points-based system to include a significantly larger number of available points with graduated scales that are aligned to the realities of the modern global production environment; and
• Reducing the current thresholds of minimum production expenditures on par with international approaches (i.e., between 10% and 50% of production budgets).

Quote

As noted in the report, “Flexibility in the Canadian content system would support the evolution of business and financing models, in keeping with the maturity of the sector and at the level of its sophisticated production companies. A modernized definition of Canadian content would support Canadian storytelling, promoting Canadian culture and soft power and the ongoing development of its world-class production sector. Each of the recommended changes would better align the Canadian content system to the realities of global production and to the systems in other jurisdictions.”

ABOUT MOTION PICTURE ASSOCIATION – CANADA

The  Motion Picture Association – Canada (MPA-Canada), the Canadian affiliate of the MPA, represents global studios including  Disney, Netflix, NBCUniversal, Paramount Global, Sony Pictures Entertainment, and Warner Bros. Discovery.

ABOUT COMMUNICATIONS MDR

The research was conducted by Maria De Rosa and Marilyn Burgess of Communications MDR, which has two decades of experience serving Canadian cultural funders, policy makers, associations, and companies.

-30-

For more information, an FAQ is available here with the complete report available for download below.