Why Canadian themes and filming in Canada don’t count as Canadian content
Most countries, like France, the UK and New Zealand, define national content based on subject matter and production location. But in Canada, the only thing that counts is the nationality of those creating the content.
When you think of Canadian content, Crave’s Empathie, Schitt’s Creek on CBC and Netflix, or films like BlackBerry, The Grizzlies, and Bones of Crows quickly come to mind. After all, they were produced in Canada by Canadians.
On the other hand, a series adapted from Canadian literary icon Margaret Atwood’s The Handmaid’s Tale and partly filmed in Hamilton, Ontario, is not officially Canadian content. Same goes for the animated film Turning Red, co-written and directed by Canadian Domee Shi, with the voice of award-winning Canadian actor Sandra Oh, and featuring famous Toronto landmarks.
What’s up, eh?
Just not Canadian enough
The Handmaid’s Tale and Turning Red simply didn’t meet the criteria established by the two authorities that certify what’s authentic CanCon — the Canadian Audio-Visual Certification Office (CAVCO) and the Canadian Radio-television and Telecommunications Commission (CRTC).
Productions with CAVCO’s seal of approval qualify for a federal tax credit. Those with CRTC certification allow broadcasters to meet the regulatory percentage of Canadian content deemed necessary to keep the American tsunami at bay.
CAVCO and CRTC vary slightly but are basically the same. The nationality of those creating the production determines whether it’s CanCon. No allowance is made for where the production is shot or how much Canadian culture it contains.
No matter how many Canadian actors you film eating BeaverTails atop Toronto’s CN Tower or consuming poutine on Quebec City’s Plains of Abraham, your production won’t be considered CanCon unless a minimum amount of key roles and labour costs behind it are Canadian.
// For more details on the history and definition of Canadian content, click here.
First, the content’s producer must be Canadian and maintain full creative and financial control of the project to ensure copyright remains in Canadian hands.
Second, a scoring system for specifically enumerated positions on the project must, among other things, get at least six points out of a possible 10. A production, for example, scores two points when the director or the screenwriter is Canadian, and at least one of these positions must be filled by a Canadian. The same applies to the two leading roles. If they’re given to Canadians, they’re worth one point each. Other stipulations apply to animated productions.
Third, at least 75 percent of the production and post-production costs must be paid to Canadians.
That’s why The Handmaid’s Tale, produced by Hulu, and Turning Red, produced by Pixar and distributed by Walt Disney Studios Motion Pictures, don’t make the grade. They don’t fulfill the producer’s nationality requirement.
The odd nation out when defining national content
Defining national content in other countries is a different story.
While Canada takes only the nationality into account, the UK, France, Italy, Spain, Australia, New Zealand, Germany and the Netherlands also consider cultural content and location.
According to a study commissioned by the Motion Picture Association-Canada — which represents streaming platforms like Netflix, Paramount, Disney and Amazon — in the UK and Italy a production’s cultural content is the main factor when granting public funding.
Producers can prove their cultural bona fides by satisfying various criteria, including language, location, lead actors, and the quality of the literary, artistic or historical material on which their production is based.
The more of a film’s footage that’s shot in the UK, and the more of its dialogue that’s recorded in English, a British regional language, or a European minority language, the more points it scores on its cultural test.
In France, at least one-third of the film must be shot in French.
Any feature film set in outer space will not be penalized in Germany. Whether it takes place on German territory or in a fictional location, it gets the same number of points. Ditto if it’s about Gandhi, Hercules or Hansel and Gretel, as long as they’re historical figures, real or fictional.
Did Canada miss the obvious in defining Canadian content?
The Public Interest Advocacy Centre (PIAC) believes the CRTC should stick to its guns in making Canadian talent the only factor.
That was PIAC's argument at CRTC hearings on the definition of Canadian content held in May of this year. As an example, PIAC cited the UK, which set up a special institute to assess and determine whether the cultural references in a production are “sufficiently British.” But to let a small group of people decide on a question like that in Canada, it said, would be “highly problematic.” Production companies could also be tempted to incorporate Canadian stereotypes just to pass the test.
The National Film Board of Canada (NFB) begs to differ, arguing that it’s time to include cultural elements in the definition of Canadian content, something many other countries have been doing for a long time.
“A modern Canadian content policy must not abandon the very thing that gives our stories meaning: cultural elements. They reflect our creativity, diversity and uniqueness. Removing cultural elements creates invisibility,” said Canada’s film commissioner and NFB chair Suzanne Guèvremont.
Streaming platforms looking for free rein
Foreign streaming platforms are calling for even more leeway in the definition of Canadian content and have voiced their objections to the Online Streaming Act, known as Bill C-11. They don’t believe they should be required to assume the same Canadian content obligations as traditional broadcasters.
In addition to including a production’s cultural quotient in the definition of Canadian content, the foreign streaming platforms are calling for more creative positions to be counted toward CanCon than in the current point system. For instance, they believe the position of showrunner, a widespread role in the English-speaking market and one that has become increasingly important, should be included. They also feel the stipulation that intellectual property be owned and controlled by Canadians should be dropped.
Tighter regulations needed
In response to foreign streaming platforms calling for more flexibility, CBC/Radio-Canada has instead urged the CRTC to tighten restrictions on what constitutes Canadian TV content.
Canada’s public broadcaster thinks at least 60 percent of a production’s key positions should be held by Canadians, including the two lead actors, the director, the writer and the showrunner.
“To take away ownership from the Canadian producer is…unwise and unnecessary,” said CBC’s executive director of business and rights, Lisa Clarkson. “Foreign partners benefit from incentives like tax credits and public funding. Instead of paying 100 percent, they’re often paying 20 to 50 percent. Those are massive inducements already.”
