Senate Committee postpones vote on project that creates quota for national streaming content

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Text also provides for payment of an annual fee based on revenue, and mechanisms to encourage investment in the Brazilian audiovisual sector. The proposal returns to the CAE agenda this Wednesday. Many streaming platforms are including advertising — or the absence of it — in their plan options GETTY IMAGES via BBC The Senate’s Economic Affairs Committee (CAE) postponed this Tuesday (21) the vote on the project that creates a quota of national content on streaming services. The text also authorizes the collection of Contribution for the Development of the National Film Industry (Condecine) on these platforms. By agreement between the collegiate leaders, the proposal should be voted on this Wednesday (22). After analysis by the CAE, the text must be forwarded to a vote in the main plenary of the House. It will then be sent to the Chamber of Deputies. There, deputies discuss the vote on another project, which has similar content and is reported by the leader of the PDT in the House, André Figueiredo (CE). The rules set out in the project will be applied to all video on demand platforms offering Brazilian users — regardless of the location of the headquarters or the service infrastructure. Companies operating in the country must be accredited by the National Cinema Agency (Ancine). They will have up to 180 days after the start of offering the service to the Brazilian market to place the order. Ancine will also be responsible for monitoring and applying any sanctions for non-compliance with Condecine’s quota and payment. Quotas According to the text, platforms must maintain in their catalogs — permanently and continuously — minimum quantities of Brazilian audiovisual content. The proposal provides for the following reserve: for platforms with more than 2 thousand works: 100 works of Brazilian audiovisual content, half of which are produced independently for platforms with more than 3 thousand works: 150 works of Brazilian audiovisual content, half of which are produced independently independent for platforms with more than 4 thousand works: 200 works of Brazilian audiovisual content, half of which were produced independently for platforms with more than 5 thousand works: 250 works of Brazilian audiovisual content, half of which were produced independently for platforms with more than 7 thousand works: 300 works of Brazilian audiovisual content, half of which were produced independently The proposal establishes that the quota will be introduced in a staggered manner: within two years after the law comes into force: 25% of the minimum works requirements four years after the law comes into force: 50% of the minimum works requirements six years after the law comes into force: 75% of the minimum works requirements eight years after the law comes into force: 100% of the minimum works requirements A The company responsible for streaming may request a waiver if it proves it is impossible to meet the quota. The reserve will also not be applied to platforms with annual gross revenue of less than R$4.8 million. Furthermore, the proposal provides that the following will not be taken into account when measuring revenue and quotas: services that provide audiovisual content on demand in an incidental or accessory manner to the offer or simultaneous transmission of sound and image broadcasting service channels and broadcasting service channels. TV pays for journalistic and informative audiovisual content, including newscasts, debates, interviews, reports or other programs that aim to report or comment on events, electronic games, even when offered by video on demand providers within the scope of their catalogs of audiovisual content on demand that consists of in video classes or other materials with strictly educational purposes, including those intended for schools and universities, as didactic or paradidactic support material on-demand or linear audiovisual content linked to public bodies of the Executive, Legislative and Judiciary branches contents made available in services of the same production company for up to one year after broadcasting audiovisual content consisting of sporting events on open or paid TV. The national content made available must respect, among other things, the promotion of cultural diversity. Disney has a loss of US$460 million with a drop in streaming and no box office hits Condecine Condecine is a charge applied periodically to various Brazilian audiovisual sectors. The amount raised goes to the Audiovisual Sector Fund (FSA), which is used to finance public policies in the sector. The CAE text allows the fee to be charged to platforms that offer on-demand content: 3% rate: will be charged to companies that have annual gross revenue equal to or greater than R$96 million. The value will be R$1.2 million per year at a rate of 1.5%: for companies with annual gross revenue between R$4.8 million and R$96 million. Annual value of R$60,000, zero rate: companies with annual gross revenue of less than R$4.8 million. Payment must occur annually, until March 31st. According to the proposal, companies will be able to deduct 60% of their contribution if, among other things, they invest in training projects in the audiovisual sector and production in conjunction with independent producers. The charge may also be reduced by 50% whenever the platform’s catalog is made up of more than 50% of national works. At the request of sector representatives, the rapporteur, senator Eduardo Gomes (PL-SE), included a device that prevents manufacturers of televisions or television receivers from favoring streaming services operated by the company itself. The Administrative Council for Economic Defense (CADE) will be responsible for punishing and monitoring possible infractions.

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