The CRTC has cut quotas for daytime television programming and genre protections as part of its latest decision in the Let’s Talk TV process.

The regulator on Thursday reduced screen quotas for the amount of Canadian programs local TV stations and specialty channels must air, with the exception of sports and mandatory services.

Quotas for the overall amount of Canadian programs that local TV stations must broadcast during the day have been reduced by the regulator from 55% to zero.

The CRTC will focus instead on evening prime time, when viewership is strong. The requirement that 50 per cent of programming between 6 p.m. and 11 p.m. must be Canadian content will remain in place.

But the regulator will look to ensure most TV stations and channels reinvest and direct a portion of their revenues into content made by Canadians for certain blocks of TV programming.

Canadian expenditure obligations for broadcasters will be retained as channels will still spend a percentage of revenues on homegrown content. But broadcasters will be able to divert their Canadian-content dollars to a smaller number of homegrown shows, for example, to ensure audience appeal.

And certain programming, including drama and documentaries, will see broadcasters continue to invest at least 75% of their content into programming from indie producers.

The latest Let’s Talk TV decision focused on how the industry will define programming created by Canadians and how it can be measured and promoted.

Other decisions: the CRTC has done away with genre protection that restricts specialty channels to broadcasting certain types of programs, and it also, in a surprise move, removed the stipulation that producers and broadcasters adhere to a mutually agreed upon “terms of trade” agreement, established in 2011.

On the genre side, the result will see existing channels be able to acquire or produce shows that “better respond to their audiences’ interests and needs,” the CRTC said in its decision.   These changes will see new specialty channels enter the Canadian market and compete with existing channels.

“Both existing and new channels will need to be innovative and creative to succeed,” the CRTC warned in its decisions released Thursday.

On the terms of trade side, the commission stated that “it is no longer necessary for the Commission to interviene in [the broadcaster-producer] relationship by requiring adherence to terms of trade agreements. The commission considers that broadcasters and producers now have the clarity and experience they need to negotiate any future agreement among themselves. As such, the Commission will allow programming services to apply to remove requirements to adhere to a terms of trade agreement, effective 29 April 2016.”

And the CRTC will require all broadcasters to financially invest in programs made by Canadians.

“Quality matters over quantity, ” CRTC chair Jean-Pierre Blais told a noon-hour Canadian Club audience.

Blais referred to traditional programming quotas as “square pegs in round holes.” The CRTC will instead look to encourage “an environment where Canadians want to watch content made by our creators – not because it is forced upon them, but because it’s good.”

The regulator also responded to consumers wanting to combine traditional TV viewing with online streaming platforms.

Here the CRTC appears ready to order upstart Canadian streamers CraveTV and Shomi to offer their services across the Internet.

“The CRTC is introducing an important change to ensure Canadian video-on-demand services can compete on an equal footing with online video services,” the CRTC said as part of its latest decision-making.

“Canadian video-on-demand services will be able to offer exclusive content as long as they are available to all Canadians over the Internet,” the regulator said.

The CRTC is also introducing two new “pilot programs” that aim to provide a more flexible framework on how the regulator defines Canadian content. Under the first pilot program, the CRTC will recognize live-action drama and comedy productions based on best-selling novels by Canadian authors as Canadian content.

Under the second pilot program, the CRTC will recognize as Canadian live-action drama and comedy series with a budget of at least $2 million per hour. Under both new pilot programs, the productions must have at least one lead actor who is Canadian, a Canadian screenwriter and a Canadian production company attached. At least 75% of the service costs must be paid to Canadians, as well as 75% of the post-production costs.

These pilot programs are considered exceptions to the CRTC’s standard Canadian program certification process. Under the standard process, productions need six out of 10 Canadian content points that are earned based on key creative position being filled by Canadians, in addition to having a Canadian producer attached and 75% of service and post-production costs paid to Canadians. These key creative positions have to include either a Canadian screenwriter or director, and at least one of two lead performers being Canadian. Different rules apply to co-ventures, official co-productions and animated productions.

The ongoing implementation of these pilot programs, however, will depend on the participation of the Canada Media Fund, the Canadian Audio-Visual Certification Office and other relevant government agencies. The CRTC will work with these agencies to evaluate the success of the pilot program.

– with files from Julianna Cummins, updated by Katie Bailey

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