Brazil is Netflix’s second-largest market, with an estimated 18 million subscribers. But despite being such a well-established force in Brazil — with over ten years of operations — Netflix and other streaming services are almost completely unregulated in Latin America’s biggest country. And while Brazilian cinema and television remain mired in crisis, the free-for-all for these so-called over-the-top (OTT) media services is set to continue, with Congress approving a legislative proposal further reducing taxes on streaming platforms.
The so-called Contribution to the Development of the Brazilian Cinema Industry (Condecine) is paid by the audiovisual sector as a whole, and its proceeds are used to fund national cinema. The taxable sectors include TV, cinema, and “other markets,” which lawmakers believe should not be applied to OTT streaming.
Opponents complain that streaming services’ revenues are out of control. Senator Jean Paul Prates stated that “one such platform” is set to make BRL 6.7 billion (USD 1.3 billion) this year alone, stressing that the country will make huge losses by offering tax breaks to OTT media companies.
However, the bill’s rapporteur, Senator Vanderlan Cardoso, said the change simply aims to “provide legal certainty” to these platforms, excluding...
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