What is Cancon?

Canadian broadcasting policy is defined by Section 3 of the Broadcasting Act, which stipulates that:

• radio frequencies are public property
  
  
• broadcast programming provides a public service essential to national identity and cultural sovereignty
  
  
• the Canadian broadcasting system should provide a wide range of programming that reflects Canadian attitudes, opinions, ideas, values and artistic creativity, by displaying Canadian talent in entertainment programming

To give effect to this policy, Canada's broadcasting regulator, the Canadian Radio-television and Telecommunications Commission (CRTC), established a system of "quotas" to regulate the amount of Canadian program content broadcast in Canada. The resulting Canadian content rules, which came to be known as "Cancon," were devised to stimulate Canada's cultural production by ensuring greater exposure for Canadian artists in Canada's marketplaces.

Cancon Rules

Cancon rules apply to radio, television and specialty broadcasting.

Radio

To qualify as "Canadian content," music must generally fulfill at least two of the following conditions
(the MAPL system):

M (music) - the music is composed entirely by a Canadian.

A (artist) - the music and/or the lyrics are performed principally by a Canadian.

P (production) - the musical selection consists of a live performance that is (i) recorded wholly in Canada, or (ii) performed wholly in Canada and broadcast live in Canada.

L (lyrics) - the lyrics are written entirely by a Canadian.

Under the Commercial Radio Policy, 35 per cent of all music aired each week on all AM and FM stations must be Canadian. In addition, 35 per cent of music broadcast between 6 a.m. and 6 p.m. Monday through Friday must consist of Canadian content.

French-language radio stations are required to ensure that 65 per cent of the vocal music they broadcast each week, and 55 per cent of vocal music broadcast between 6 a.m. and 6 p.m. Monday through Friday, is in the French language.

Seven per cent of music aired on ethnic radio stations each week must be Canadian.

Television

Private television licensees generally must achieve a yearly Canadian content level of at least 60 per cent overall, measured over the course of the entire broadcast day, and at least 50 per cent between 6 p.m. and midnight.

The CBC, as the national broadcaster, must ensure that at least 60 per cent of its program schedule between 6 a.m. and midnight consists of Canadian productions. It must maintain the 60 per cent level over the course of the broadcast day.

Evaluation of Canadian content in a television program is based on the following criteria: whether its producer and key creative personnel are Canadian; the amounts paid to Canadians for services provided to make the program; and amounts spent in Canada on lab processing.

Broadcasters may also claim a 150 per cent time credit for Canadian dramas which have a full Canadian complement in key creative roles, and which meet certain scheduling criteria.

Pay-TV, Specialty and Pay-per-view

Pay-TV, specialty and pay-per-view services have varying Canadian content requirements set by the CRTC as their condition of license. The requirements depend on a number of factors, including the nature of the service and the types and availability of programming offered. The requirements are reviewed periodically by the CRTC at license renewal time.

Co-production Treaties

Canada has signed numerous co-production treaties with other countries, particularly with France, which allow Canada to share production costs in film, video and television production ventures.

To qualify as "Canadian" under Cancon rules, a Canadian production company must retain a financial participation position of at least 50 per cent, and a 50 per cent share of the profits. These include all ventures with co-producers of a foreign country that does not have a film or television production treaty with Canada. There is some variation in criteria for co-ventures involving a co-producer from a Commonwealth or French-speaking country, or a country with which Canada has a film or television production treaty.