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Cancon, Canadian Content Strategy in Media

Super Bowl, but no Super Bowl “commercials” in Canada
The Super Bowl, the championship game of the National Football League (NFL), is often regarded as the most popular sports event in North America. In January or February every year, NFL fans are glued to their television set not to miss anything about the single, winner-take-it-all game for the Vince Lombardi Trophy. What makes this game even more interesting is that it showcases brand new, eye-catching, multi-million-dollar-per-spot TV commercials before, during, and right after the game. And quite often, one or two controversial commercials outlive the game itself. In this year’s Super Bowl, for example, Volkswagen was the clear winner in this field with its lovely gig starring a cute, force-charging 6-year old Darth Vader.
 


People in the north of the border are no exceptions in delving into the Super Bowl and its flashy TV commercials. Unfortunately though, it is only the game that is simultaneously available to Canadian viewers. Brand new TV commercials are not. Not until a proper approval process that permits those commercials to be broadcasted in Canada is in place.


Cancon, or Canadian Content

Why are Canadians not allowed to watch those new TV commercials at the same time as Americans as the game? It is because of the rule that is set out by a Canadian regulator CRTC (Canadian Radio-Television and Telecommunications Commission), which is an equivalent to FCC in the U.S.) to ensure the survival, let alone prosperity, of Canadian media. It is often called “Canadian Content,” or “Cancon” in short. It is to make sure in this case that a Canadian channel earn a handsome amount of advertising revenue by broadcasting the Super Bowl game, not any other American corporation. It might not so fun for the Canadian viewers to watch the same old, all too familiar TV commercials all over again during the game, particularly knowing that the newer and funnier commercials are being rolled out at the south of the border at the same moment, it may be an inevitable cost Canadians have to pay to help their “Canadian culture and heritage” withstand and survive the onslaught the mighty American media.


Not surprisingly, American media and contents have long been a daunting challenge to the Canadian counterpart. They are, in a way, like a two-edged sword. On the one hand, it is very convenient and efficient for Canadian media to import and disseminate a wide variety of contents made in American often for cheaper cost. On the other, however, it is equally easy and risky for the Canadian media to be overwhelmed by American contents, pushing them to the brink of losing their own, “Canadian” identity. Cancon, therefore, is what the CRTC has come up with to ensure that Canadian media keep thriving in the market, and Canadian-generated contents secure channels through which they are disseminated to Canadian viewers.
 

The Cancon rule is originated from the Canadian broadcasting policy that is defined by Section 3 of the Canadian Broadcasting Act. The policy principles can be summarized as follows.
  • 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.

MAPL
To align with the principles, CRTC, reporting to two federal departments – Canadian Heritage and Industry Canada – has devised as system of “quotas” to regulate how much Canadian program content must be broadcasted during prime time and others. The content rules (“Cancon”) is aiming at fostering Canada’s cultural production as well as promoting more exposure of Canadian content for the viewers and artists in Canada. Cancon applies to radio, television and specialty broadcasting in a slightly different manner.

Radio
For radio broadcasting, at least two of the following requirements must be fulfilled to meet the Cancon rules. These four conditions are often called “MAPL system” as in:
  • 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.
The Commercial Radio Policy requires that 35% of all music aired each week on all the AM and FM radio stations must be Canadian. Furthermore, 35% of music aired between 6 A.M. and 6 P.M. from Monday to Friday must be Canadian content. Additionally, French-language radio stations have their own language rules to follow, namely, 65% of the vocal music they air each week, and 55% of the vocal music aired between 6 A.M. and 6 P.M. from Monday to Friday, must be in French.

Television
Private TV broadcasting companies are required to meet a yearly quota that at least 60% overall, or at least 50% between 6 P.M. and midnight, from all the content a company has broadcasted for a whole year must be Canadian content.
In particular, the Canadian Broadcasting Corporation (CBC), as the national broadcaster that is an equivalent to BBC in the U.K., must ensure that at least 60% of its program between 6 A.M. and midnight is Canadian content.
CRTC has also laid out so-called “Priority Canadian Programming” rules for conventional TV services, which require that those programs regarded as “Priority Canadian Programming” be aired during peak viewing hours, i.e., between 7 P.M. and 11 P.M., when most Canadians are watching television. News, information and sports programs are excepted from the Priority Canadian Programming category.

Pay-TV, Specialty and Pay-per-view
The CRTC has licensed Canadian pay, specialty, pay-per-view, and video-on-demand (VOD) services since the early 1980s. Canadian content requirements for these services vary and are set by conditions of licence. According to the CRTC’s “Canadian Content” webpage (
http://www.crtc.gc.ca/eng/cancon.htm), “Expenditure requirements for pay-tv and specialty services vary for each service and are set by conditions of licence.”

CRTC and the Internet
It is still controversial and the matter of on-going debate if the CRTC has the legitimate power to regulate the Internet, and if so, to what extent the CRTC is able to, if not, then who can undertake the role of overseeing the Internet in Canada. At the moment, however, the general consensus is that CRTC will take the stance that is similar to that of “Laissez-faire.” Since 1999, when the definition of “new media” was made, CRTC can claim “some” right to regulate the Internet, particularly in relation to the “content,” e.g., audio and/or video content delivered through the Internet. Text-based contents such as emails and webpages, however, are out of its regulation power.

Conclusion
It is often mistaken that Canada and Canadians are more or less the same as the U.S. and Americans. This misconception is not all too surprising, considering the geographical proximity of those two countries, but is the very notion that must be corrected to better understand how unique and vastly different Canadian culture and its social norm are from those of the U.S.
There is little doubt, however, that Canada’s media and content are constantly at risk of being overwhelmed by those made in America. And the “Canadian Content,” or “Cancon” rules are one of key measures Canada has had to develop and implement to ensure the survival, and hopefully even thriving, of Canadian media, content and culture.
However, it appears that CRTC’s Cancon rules are getting engaged in even tougher battles as technology rapidly advances. Quite a few people are getting the unfettered U.S. broadcasting services through a variety of satellite systems that are available in the “grey market,” meaning that it is unofficial, unauthorized or unintended by the Canadian regulator, but not illegal either. Moreover, the Internet is posing even a greater challenge for the CRTC to promote Canadian production and local content.
It would certainly be worth watching how the CRTC and its two reporting bodies – Canadian Heritage, and Industry Canada – will cope with these daunting challenges. (+)