RIO DE JANEIRO, BRAZIL – The bill compelling streaming services such as Netflix, Amazon Prime Video and Now to invest in national content has been approved by the Culture Committee of the Chamber of Deputies. The text proposes that companies allocate at least 10 percent of their revenue to Brazilian productions.
The bill approved by the committee is a substitute to Bill 8.889/2017. proposed by deputy and rapporteur Benedita da Silva and submitted by deputy Paulo Teixeira. The text further establishes rules on how platforms should invest in national content.
At least 50 percent of the minimum amount expected for the companies to invest in Brazilian movies and series should be directed to independent Brazilian production companies. At least 30 percent should be allocated to productions in the country’s North, Northeast and Center-West regions.
The bill further establishes that at least 10 percent of the amount earmarked for national productions should be aimed at identity politics issues, such as the rights of women, blacks, indigenous people, quilombo settlements, people with disabilities, traditional communities or socially vulnerable groups.
This requirement will apply to companies offering streaming services, except small-scale services or those exclusively financed by advertising, such as YouTube.
YouTube Premium, on the other hand, will have to comply with the rules since it is subscription-based.
Companies violating the measure may be fined up to double the amount that should be invested in national productions.
Companies will de be required to pay the Condecine fee
In addition to the minimum amount to be invested in national content, the bill provides that services such as Netflix and Amazon Prime Video must pay the Condecine fee (Contribution to the Development of the National Film Industry).
Companies with annual revenue of up to R$4.8 million (US$1.2 million) will be exempt. Above this figure, the rates will range from one percent, for those with annual profits of up to R$78 million, and four percent for those with annual profits over R$300 million.
However, the bill provides for a discount of up to 50 percent in the Condecine fee if companies comply with the requirements of investing in independent Brazilian productions in the North, Northeast and Center-West regions and in identitary contents.
The project approved by the Culture Committee is “conclusive” and, therefore, will not be required to go through a full Chamber vote. In order to be passed by Congress, it will require the approval of three further committees: Science, Technology, Communication and Informatics; Finance and Taxation; and Constitution, Justice and Citizenship.