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

Notice of Update

Originally published in the spring of 2023, the MPA-Canada commissioned report, ‘Defining Canadian Content: Approaches Taken in Other Jurisdictions and Lessons Learned for Canada’, examined how modernizing the definition of “Canadian programs” could strengthen Canada’s creative sector and production industry. An addendum has now been added to reflect developments observed since the initial publication.

The addendum reinforces the original report’s findings while documenting a continued international trend toward greater flexibility in national content definitions. As many of the jurisdictions examined have implemented minor changes to enhance producer flexibility in their certification systems, the report’s core conclusion remains unchanged: Canada’s current content definition system continues to face challenges in adapting to global production trends and market opportunities.

The original report and its recommendations for modernizing Canadian content definitions remain valid and are further supported by the additional research presented in this update. For complete context, both the original report and its addendum should be read together and cited accordingly.

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

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).

Read the Complete Report & Addendum

For more information, an FAQ is available here.

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) is the voice and advocate of the major international producers and distributors of movies, television and streaming programming in Canada and is an affiliate of the Motion Picture Association, Inc. (MPA).

Through the production of long-running television series, feature films, and world-class post-production, visual effects, and animation projects, the global studios we serve – including Disney, Netflix, Prime Video & Amazon MGM Studios, Paramount, Sony, NBCUniversal and Warner Bros. Discovery (“MPA Studios”) – make substantial investments in Canada.

One or more affiliates of each of the MPA Studios operate a streaming service that is available in Canada and elsewhere around the world. These services provide a wide range of entertainment choices to Canadians through a variety of services offering subscription video-on-demand, ad-supported video-on-demand, hybrid services offering both, and free ad-supported television.

On behalf of the MPA Studios, we work with governments and local industry partners to support initiatives that strengthen the film, television and streaming industry in Canada.

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.

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