I'm not sure what that is, but I highly doubt the CRTC regulation states what you're trying to say. Its probably very performance based legislation (knowing Canada) and allows Canadian businesses to choose how to comply, just so long as they comply.
But I will say this: I just watched a wonderful
Nature of Things with David Suzuki. Quality content right there, likely only survived after 40 years because nothing better is on with this crap Canadian content
The current CRTC regime has roots in weird, 60 year old statist national media development programs. They aren't as heavy handed (National Film Board, etc.) as they used to be but the root government directives still kind of exist.
Things really got going when cable became big and they basically banned the popular American channels (MTV, Nickelodian, Food, History, Cartoon, ESPN) from directly beaming all their content and forced them to setup more Canadian versions. Drop a lot of American programming and hire/create some Canadian studios to create Canadian shows to fill up the by-law Canadian content time.
The objective was basically to divert some revenue flows into Canadian studios, so there's jobs for talent. Was this a bad scheme? Hard to say. Canadian consumers probably paid a bit more, for slightly lower quality stuff, but it's not terrible and mostly mimics US content it's replacing. It has also arguable done a decent job of nurturing Canadian talent, and in a somewhat more free-market way (compared to a government owned studio). A lot of Canadian talent who have made it big has gotten their start in Canadian cable TV land as kids (I went to school with Jay Baruchel whose first gigs at the time were on low budget YTV young-teen shows that exist because of these can-con mandates). They wrapped this all up in a big Maple Leaf flag and called it "Canadian culture" to blunt critics but it's mostly about protectionism (debatably understandable and justifiable)
The problem is now that 21st century net streaming is blowing this closely fenced cable land into pieces. Cable packages as they currently exist are obsolete, more people have 10-50 MB/S internet (or more with full fiber optic wiring) that can handle even HD streaming. Internet based media distributors are now heavily competing with old broadcast/cable ones, they are even buying high quality programming from studios (netflix winning emmy), how long do media producers like HBO/AMC/Starz stay exclusively as cable creatures?
Now this new 21st century reality clearly poses a threat to the current Canadian setup where peoples' cable packages support these Canadian studios. The cable companies didn't care before, because they were guaranteed big profits, but now they are beginning to face outside competition from netflix & friends despite their efforts to "vertically integrate" (aka monopolize) all media content in Canada and blackout any American signals. Canadians are figuring out how to easily spoof their IP to US servers, allowing them to get at American services. And the political pressure is piling up on the government by consumers to shatter this model as Canadian consumers see how poor our media reality is getting compared to America (just look at the content selection of US netflix vs Canadian).
Now the Canadian telcos can fight this tooth and claw which seems to be the new near term plan. Bell attempting to track all your internet actions at an ISP level and blast ads at you based on that is the opening salvo here. They have all the tools since they are the ISPs. They can get into a running gunfight with ISP spoofers (like they used to with imported/pirate satellite dishes), and also aggressively throttle any streams from non approved sources for further rearguard actions...But how long will the public stand for this kind of aggression especially as they see the US/EU/Asia blast away at warp speed compared to us? Further this kind of iron fisted action may have long term damage to Canada's overall development as a high tech country.
They will be beaten eventually, their vertical integration money vacuum model will be obliterated by high tech reality. I personally think their dual function as both ISP & media distributor should be severed by anti-trust action asap, it is now a huge conflict of interest, ISPs should be considered utilities. Unfortunately the revenue subsidies that currently go to Canadian studios will dry up, BUT the good news is that thanks to 21st century technology, you can now make quality CGI much cheaper than 20 years ago so the native film/tv industries of smaller countries are now able to compete better with hollywood like they were up until the 80s. What they make with lower budgets doesn't look so cheap & awful anymore so there's room for talented Canadian studios with modest financial backing to make successful product.