September 23, 2009
The Brazilian audiovisual market aims to consolidate itself as an industry as well as to expand commercially beyond national frontiers. After a strong decline in the beginning of the 90s, legal measures were implemented viewing the structuring and establishment of all national cultural industry, specially the audiovisual one.
In this sense, tax incentive laws were approved that remains in force until this date, through which national and foreign companies may invest part of the tax due in national production, becoming investors to such production, without the risks inherent to this entertainment law activities. The amounts deriving from federal tax incentives in this area exceeded 1.5 billion reais (approximately 840 million US Dollars) between 1995 and 2005 (according to government data). It also must be observed that, besides the federal laws, many States and Cities also subsidy cultural production in general and especially audiovisual.
The results may be observed by the number of national films made annually, in constant growth, although these are still small when the amount of subsidies is analyzed.
There is still, nevertheless, a gap in national professional comprehension of the specificities of contracts among producers and the many creators that participate in the work. This due to the little literature available on the area and fragile understanding of the corporate dynamics of the audiovisual industry, making it clear that there are no legal courses dealing specifically with entertainment law. Thus, legal assistance that carefully follows the transfer agreements regarding production, so to assure the legal safety of the chain of rights, is essential to its future commerce.
There is a restrict number of audiovisual work distributors in the country. This area still lacks more competition, resulting in a strong concentration of this activity. The present values charged by the distribution allow high profit, being this field subject to investments and entry of new players.
Distribution requires, to the corporate consolidation of players of this area, an insurance regarding producers and assessment with respect to exhibitors. In the first case, to assure that the producer effectively has the rights unencumbered to commerce and so the exhibitors respect the limits and contract conditions, especially regarding exhibition and income.
Finally, there is growing number of channels and audiovisual exhibition networks, including a growing access to broadband and the entry of mobile telephone companies in the exhibition market. This indicates a growing demand for content, especially audiovisual. This movement tends to increase the amount of money in all the production chain, including investment and income, as long as such activities have strong legal protection.
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