Senate consultancy says it is urgent disciplinary streamings; understand

A technical note made by the Senate consultancy defended the approval of a video market regulation, which includes platforms streaming, how it is . Currently, there are at least 2 projects stopped in the House on the subject.

According to the document, the approval of a law on the subject is “Urgent and necessary”. Leia a (PDF – 1 MB).

The note recalls that the VOD market (video on demandIn English) it is not subject to rules and taxes imposed on competitors, such as subscription TVs. It also says that the VOD sector is consolidated in Brazil.

“This is a mature, rapidly evolving market that inexorably advances on the audience of open TV and the base of users of pay TV services”.said the study.

Currently, there is a gap in the law on the obligations of Streamings and who supervises them. Ancine (National Film Agency) even created 3 normative instructions for the sector, but without law.

There is no definition, for example, about how much streaming And other on -demand video companies need to pay tax and how many national securities need to offer – differently from subscription TVs, which have these obligations, such as.

Catalog quota and taxation

The Senate consultancy note states that there are 2 main points that should be the most attention of the congressmen.

One is what establishes the so -called “catalog quota”, which establishes a minimum (either in hours or in number of titles) of Brazilian productions on the platforms.

There is also the taxation that would be made to the platforms.

“The definition of these issues is fundamental to both companies that explore the VOD market and the entire national audiovisual production chain”said the document.

Projects stopped in the Chamber

Currently, there are 2 PLS (bills) on the theme of the House.

O PL 8.889 of 2017by (PT-SP) and under the rapporteur of (PDT-CE), received on May 13, 2024 and since that date, has been waiting for a vote in the Casa Baixa plenary. (PDF – 367 KB).

One of its main points is what defines the quota of catalog by the number of hours of content. The proposal determines a gradual increase until at least 10% of Hours offered are from Brazilian productions.

This affects platforms because many offer in their series and miniseries, which count as one title, but reach many hours long.

Here are the main points:

• taxation: progressive rate of up to 6% annual gross revenue from sales and services made in Brazil, depending on revenue;
• abatement: The above amount may be deducted up to 30% with the acquisition of rights or production or co -production of independent Brazilian cinematic works;
• Catalog level: In the beginning, 2% the hours of total content will have to be of Brazilian productions. Will gradually increase until it reaches 10%. Half of the percentage must be independent content;
• prominence: Platforms need to highlight Brazilian content to ensure greater visibility;
• Non Brazil Representative: Foreign platforms will need to keep legal representative in the country permanently;
• Ancine: It would be up to the regulatory and oversee.

By the proposal, how will the taxation be:

• 0% to Companies with annual gross revenue of up to R $ 4.8 million;
• 1% for annual gross revenue between R $ 4.8 million and R $ 78 million;
• 3% for annual gross revenue between R $ 78 million and R $ 300 million; and
• 6% For gross annual revenue above R $ 300 million.

Senate consultancy criticized the taxation because it is higher than the recommended by a working group created by the Ministry of Culture.

“It is important to note that the maximum rate of 6% is 50% higher than recommended by the 4% GT-vod for the same incidence range of the contribution.”said the document.

PL 2,331 by 2022

There is still the PL 2,331 by 2022authored by the senator (PSD-MS) and reported by the deputy (PCdoB-RJ). The text has already passed the Senate and is on the House Culture Commission. This is a (PDF – 166 kb).

Unlike Teixeira’s proposal, the text establishes that the catalog quota would be calculated by the number of titlesnot hours. By the proposal, the platforms would have to ensure that, at least, 5% of the titles offered are of national content.

The rule would be valid for services with at least 2,000 titles in the catalog, which would remove the obligation of smaller services.

For Senate consultancy, the 5% are insufficient, because they would be equivalent to the average of what is already today and smaller than the minimum of other countries, such as the 30% required in Spain, Portugal, Italy and the United Kingdom.

“The second point is that, on average, a quota of 5%catalog was foreseen, far short of the 30%quota, applied in most European countries, and 20%, suggested by GT-Vod to standardize the offer of vod services in Brazil.”said the document.

Other points:

• up to 3% over gross revenue obtained in the Brazilian market with these services;
• Differentiated exemptions and tracks for small companies with revenue less than certain limits;
• Part of Condecine can be deduced (up to 60%) If the agent invests in audiovisual projects in Brazil, such as licensing of Brazilian content and technical training.