CREATIVE INDUSTRIES Brazil FILM AND TELEVISION MARKET REPORT MARKET GUIDANCE FOR CANADA’S CREATIVE EXPORTERS This report was commissioned by the Consulate General of Canada in Rio de Janeiro on behalf of the Canadian Trade Commissioner Service (TCS). The opinions expressed herein are those of the authors and do not necessarily reflect those of the Government of Canada. Table of Contents

1. Executive Summary 5

2. Industry Overview 6

2.1. Commercial Environment 6 2.2. Challenges/Opportunities for Foreign Companies in Brazil 8 2.3. Industry Characteristics - What Makes Businesses Fail? 9 2.4. How Do Canadian Companies Access These Opportunities? 9

3. Sectoral Breakdown: Film, Television and VoD 11

3.1. Film Sector 12 3.1.1. Market Entry Strategies 15 3.1.2. Key Decision Makers, Market Agents and Stakeholders 15 3.2. Television Sector 16 3.2.1. Market Entry Strategies 17 3.2.2. Key Decision Makers, Market Agents and Stakeholders 18 3.2.3. Coproduction with Television channels 18 3.2.4. Production service 19 3.2.5. Branded content 19 3.3. Online Exhibitors/ VoD Operations 19

4. Film and Television Project Funding 22

4.1. Audiovisual Sectoral Fund (FSA) (Law 11,437/06) 22 4.2. Financing Funds in the National Film Industry (“FUNCINEs”) – MP 2,228-1/2001 23 4.3. The Audiovisual Act (Law 8,685/93) 24 4.3.1. Article 1 24 4.3.2. Article 1-A (Sponsorship) 24 4.3.3. Article 3 25 4.3.4. Article 3-A 25 4.4. Article 39, X, of MP 2,228/2001 26 4.5. Law 8,313/91 (“Rouanet Act”) 26 4.5.1. Article 18 27 4.5.2. Article 26 27

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5. Key Legal and Regulatory Concepts 28

5.1. Copyrights and Regulation 28 5.2. Coproductions under the Brazil-Canada Treaty 33

6. Education and Training 34

7. Key Theatrical and Television Industry Sectoral Events 35

7.1. Market Events in Brazil 35 7.2. Film Markets with Brazilian Booth or Delegation 35 7.3. TV/VoD Content Markets with Brazilian Stand or Delegation 36

8. Appendix 37

List of Appendix Contents: 37 8.1. List of Acronyms 38 8.1.1. Technical terms, definitions, sectorial programs and mechanisms 38 8.1.2. Audiovisual sector organizations, related institutions 38 8.1.3. Universities and technical training institutions 39 8.2. Government organizations 40 8.3. Semi-state organizations 42 8.4. Private sector companies 44 8.5. Key publishing and distribution companies 48 8.6. Studio facilities, special effects, post-production houses and laboratories ...... 52 8.7. Film commissions 54 8.8. List of educational programs 56 8.9. List of channels 59 8.10. Brazil-Canada Productions 64 8.11. List of Relevant Legislation 67 8.12. Industry Data and Graphs 68

4 1 Executive Summary

The present Film and Television Market Report is designed to provide information and highlight business opportunities for Canadian companies interested in engaging in business and otherwise entering the Brazilian film and television market.

At this time, while the Brazilian economy is recovering from a deep recession, the creative industries sector and the film, and television sectors in particular, have remained strong, with an average growth above 8% per year since 2008, offering multiple opportunities for international business.

The report contains useful information on decision-makers, market agents and stakeholders for both film and television sectors, including the robust television series sub-sector and emerging video-on- demand business, as well as orientation on where and how to approach local companies.

Given the preponderant role of the Brazilian federal government in audiovisual content funding, and the dependence of local producers on local incentives, it is essential that international producers and service providers become familiar with regulatory framework, and direct and indirect funding mechanisms, in order to navigate the marketplace and successfully license, co-produce and/or partner with Brazilian firms.

Current legislation stipulates that international companies must partner with or contract a Brazilian production company to enter into co-production or production service contracts in Brazil. As such, the choice of the local production company is crucial. The Brazil-Canada Co-production Treaty (1995) allows producers to benefit from incentives in both countries and thus expand funding sources and distribution potential.

The Brazilian television and cinema sector is continuing to expand. Pay-TV channels offer important co-production opportunities resulting from specific government policies and the driving force of Law 12,485, which created local content quotas for Brazilian independently-produced content in prime-time on Pay-TV channels. Production for digital streaming also offers good growth opportunities in Brazil. Brazil is one of the top five consumer markets for companies suchas Netflix and YouTube, and has become an attractive environment for production of original content and acquisition of local content.

5 2 Industry Overview

2.1. Commercial Environment While the Brazilian economy is slowly recovering from a deep recession, the Creative Industries sector in Brazil and the film and television sectors in particular, have remained strong, with continued growth in recent years.

A number of positive factors have contributed to this reality. First and foremost, Brazil offers a huge domestic market for audiovisual content, given its population of 206 million. Moreover, the current aggressive government pro-business policies of key federal government leadership in the National Film Agency, Ancine, and the Ministry of Culture are actively promoting the audiovisual industry internally and internationally. These policies are also reinforced by the highly organized private- sector production unions, associations and NGOs. Further, as the media and entertainment landscape undergoes great transformation all over the world, Brazil stands out as one of the countries where these transformations have been more significant and accelerated.

When considering economic indicators in the medium to long-term, industry forecasts are generally favorable. According to Price Waterhouse Cooper (PwC), in spite of recent political and economic turmoil, the Brazilian cinema sector is continuing to expand. Over the forecast period, box office revenue is expected to rise at a CAGR of 6.9% to reach US$1,0 billion in 2021, up from US$773 million in 2016, as shown in Table 1.

Table 1 - Entertainment and Media market in Brazil* * (US dollar millions) 2016-21 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 CAGR Business-to-business­ 1,7 1,9 2,0 2,0 2,1 2,8 2,2 2,3 2,4 2,4 2,735

Books 1,4 1,4 1,5 1,4 1,3 1,3 1,3 1,3 1,3 1,3 -0,624

Magazines 1,4 1,3 1,3 1,2 1,2 1,1 1,1 1,1 1,1 1,0 -1,884

E-sports ------

Cinema 580 572 581 694 773 816 877 940 1,006 1,076 6,824

Internet video 35 84 123 155 181 208 225 237 255 276 8,783

Internet access 6,4 7,2 8,6 10,4 11,8 13,0 13,9 14,6 15,1 15,4 5,467

Continued

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Continued Table 1 - Entertainment and Media market in Brazil* * (US dollar millions) 2016-21 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 CAGR Internet advertising 817 1,2 1,7 1,9 2,0 2,3 2,6 2,9 3,2 3,6 11,882

Newspaper 2,3 2,4 2,5 2,5 2,5 2,5 2,5 2,5 2,4 2,4 -1,279

Out-of-home advertising 259 284 313 316 333 334 353 372 391 409 4,192

Radio 340 350 356 350 350 345 343 249 356 367 0,924

Music 346 402 407 414 438 479 524 568 610 644 8,036

Television advertising 4,1 4,3 4,9 5,0 5,2 5,4 5,7 6,0 6,5 6,9 6,009 Traditional Television 5,3 6,2 6,7 6,9 6,9 6,8 7,1 7,2 7,4 7,7 2,176 and home video Video games 244 333 442 536 670 802 946 1,1 1,3 1,4 16,571

Virtual Reality ------

Total 25,2 28,0 31,3 33,8 35,8 37,7 39,6 41,2 43,2 44,9 4,658 Total without double 24,6 27,3 30,6 33,0 34,9 36,8 38,7 40,4 42,1 43,7 4,608 counting * At average 2016 exchange rates. ** Note: Digital advertising components such as online television, online radio, digital newspaper, digital consumer magazine, digital trade magazine and digital directory advertising are included in the respective segments and in the Internet advertising segment but only once in the overall total to avoid double counting. In addition, consumer spending on radio license fees is included in both the television and video and the radio segment but only once in the overall total. Note: Numbers shown are rounded. Totals may not equal the sum of their parts due to rounding. Source: PwC Global Entertainment and Media Outlook 2017-2021

According to the 2016 Media and Entertainment Report by the US International Trade Administration, the Brazilian filmed entertainment sector is slated to reach $2,7 billion by 2019, up from $2,2 billion in 2015, at a robust 6.1 % growth rate. Box office revenues will reach $1,16 billion, growing 8.5 % during the same five‐year period. The fastest growth will be in electronic home video, which will rise at an impressive 15.4 % to $676 million in 2019 (from $330 million in 2014), which will represent 24 % of total filmed entertainment revenues.

Over-the-top (OTT) streaming revenues are also expected to strongly increase to $191 million in 2019, although a marked revision downward from predictions made in 2017 that revenues for 2018 would reach U$363 million. Pay-TV subscription revenues are expected to almost double to

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reach $485 million by 2019 (up from $250 million in 2014), and offer excellent growth opportunities for companies that are willing to navigate the quota and taxation requirements levied on foreign providers. Most Pay-TV operators also provide TV Everywhere services, allowing subscribers to access authenticated content across multiple platforms. These indicators make Brazil the region’s most competitive, attractive and largest online video market, reaping an estimated total of US$527 million in gross revenue in 2016.

According to Ancine, the Brazilian audiovisual sector accounts for 98,000 formal and 150,000 indirect jobs. SEBRAE, the Brazilian Small and Medium Business Administration Service, has also published an Economic Impact Study (2016) highlighting the audiovisual sector as a significant engine of economic growth, with a total of 4,883 commercial establishments and 1,404 companies in the production and post-production segment in 2017 (an increase of 129% from 2007 to 2014). See Chart 8.12.12 in Appendix for details.

2.2. Challenges/Opportunities for Foreign Companies in Brazil Generally speaking, there is a wide array of opportunities for Canadian firms to partner, invest, license content and do audiovisual business in the Brazilian film and television sectors, within the current relatively complex industry framework.

With its rapidly expanding broadband penetration (over 59% of Brazilian households are online, with nearly 89 mobile broadband subscriptions per 100 inhabitants), digital streaming and subscription services offer good growth opportunities in Brazil, especially for local independently-produced content or in new genres. Brazil is one of the top five consumer markets for companies such as Netflix and YouTube, and has become an attractive environment for production of original content and acquisition of local content.

Brazil lacks high-level screenwriters and scripted content, with very few local series demonstrating international appeal. Exceptions are Netflix original content produced in Brazil: “3%” and“The Mechanism.” Professional training of entrepreneurs and executives is still a great challenge for the sustainability of film and television companies, and their level of internationalization remains low. In this context, Canadian companies could consider partnering with a Brazilian producer to access Brazilian financing mechanisms and local talent, while bringing in their expertise for potential projects.

Another area where important opportunities exist is for new investments in infrastructure, such as for the construction of studios and the provision of post-production services. Rio de Janeiro and São Paulo concentrate the majority of production companies and commercial activity. Government policy has sought to foster geographic decentralization of the audiovisual sector, and financing mechanisms promoted by Ancine have sought to favor production and programming companies located in northern and southern states, which imply good potential for international partnerships (co-production or production service in those regions). Furthermore, capital market financial mechanisms such as Funcines (see Section 4.2 below) and private investment funds are increasing the

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volume of resources invested in the production chain, representing an opportunity for participation of foreign investors.

Regarding on-location filming, Brazil’s enormous diversity provides an immense variety of filming scenarios: beaches, arid deserts, mountain ranges, forests, marshlands, etc., as well as a wide variety of climates displaying all seasons of the year. Film Commissions throughout the country offer support for filming in all formats (cinema, series, documentary, commercials). See Appendix for full list of film commissions.

It is also important to note that, while Brazil maintains a vast array of production incentives for national content in every format, there is no specific foreign production incentive (tax credit or cash rebate). Nevertheless, foreign producers may still partner with a Brazilian company to access local production funds.

2.3. Industry Characteristics - What Makes Businesses Fail? According to Brazilian law, international companies must partner with or contract a Brazilian production company to enter into co-production or production service contracts in Brazil. The Brazilian audiovisual sector, and particularly the production segment, is highly dependent on public funding and incentives. This model impacts not only public policies, but also the market’s organization and practices, since all content funded by public resources must comply with corresponding eligibility requirements for both funding and commercialization.

The most important factor determining success or failure in for international producers aiming to coproduce in Brazil is the choice of the local partner production company, which is responsible for compliance with all rules and requirements from Ancine. Its fiscal integrity and expertise in production management should be strictly verified, as well as creativity, access to network executives and local talent, familiarity with deliverables and with broadcasters’ compliance rules.

Canadian television producers interested in licensing their content in Brazil should become familiar with each channel’s characteristics and which genres and formats of international programming have been successful for each one, and then reach out to acquisition executives and take an aggressive approach with appropriate content given current market characteristics and trends.

2.4. How Do Canadian Companies Access These Opportunities? To approach local companies and find a suitable partner company in Brazil, Canadian companies should:

N Attend Brazilian market events;

N Join the events and business meetings organized by Brazilian Film and Television trade associations at their booths in both local and international the audiovisual markets;

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N Contact the sectoral associations (BRAVI, APRO, SICAV, SIAESP). See Appendix for details;

N Contact Brazilian television networks and Pay-TV channel executives. See Appendix for details;

N In the case of co-productions, research ways to combine Brazilian and Canadian incentives, such as those offered by the OMDC in Ontario and those offered by the Audiovisual Sectoral Fund (FSA) in Brazil.

To license their content in Brazil, Canadian producers and distributors should:

N Attend Brazilian market events;

N Meet Brazilian distributors at film festivals and markets;

N Contact Brazilian television networks and Pay-TV acquisition executives in the international audiovisual markets.

Canadian service providers interested in taking part on Brazilian market should:

N Attend Brazilian market events and promote their services to local producers;

N Contact the sectoral associations (BRAVI, APRO, SICAV, SIAESP) to reach their producers associates. See Appendix for details;

N Reach out to Brazilian service providers in the audiovisual supply chain.

Due to the dynamism and complexity of the Brazilian audiovisual sector, before undertaking contractual commitments, Canadian producers and service providers are urged to seek both professional legal and business consultancy to align their individual needs with the current regulatory framework, government funding mechanisms and market agents.

N N N

10 3 Sectoral Breakdown: Film, Television and VoD

The audiovisual sector in Brazil is regulated by Ancine, which operates the main financial resources for production and distribution in the country. Ancine supervises the use of tax incentive mechanisms and is also responsible for the FSA (see Section 4.1), pursuant to which the agency is expected to invest R$ 1 billion in film and television production, infrastructure and training in 2018.

The Ministry of Culture is the federal government organization that determines policies and actions to promote Brazilian culture, including guidelines and programs for the Audiovisual sector. The Minister of Culture serves as president of the Superior Council of Cinema (CSC), an organization that reports to the President of Brazil, and which aims to formulate and implement public policies for the development of the national film and television industry. The Minister of Culture also leads and is responsible for appointing the members of the FSA management committee that proposes the entity’s investment guidelines and actions.

In Brazilian states and municipalities, each Secretary of Culture is responsible for developing and executing actions to promote local the audiovisual activity. Policies and actions regarding funding and promotion are also implemented by local public companies exclusively dedicated to the development of the audiovisual sector, such as Spcine in the city of São Paulo and RioFilme in the city of Rio de Janeiro, or companies devoted to the development of local economy, such as Codemig in the state of Minas Gerais. Rio de Janeiro and São Paulo are the most relevant Brazilian regional hubs.

Rio de Janeiro is historically the city that has developed the most in the Brazilian audiovisual landscape, with more than a hundred years of film and television activity, and the home of the main free-to-air television networks of the country. In the cinema segment Rio has led the country with the highest number of films produced for the last several years, as well as with box office results. Independent production companies in Rio de Janeiro also have generated a large volume of made-for-TV productions with great potential for commercial results. Rio de Janeiro’s municipal audiovisual sector company, RioFilme, played a major role in the economic development of the Brazilian audiovisual sector between 2009 and 2016.

São Paulo is considered the primary Brazilian city of business development in general, and it is where audiovisual activity finds its greatest synergy with brand communication and digital media. The majority of the principal theatrical film distributors and the vast majority of Pay-TV networks are based in São Paulo. In 2015, the São Paulo municipal audiovisual company Spcine was created to focus on audiovisual sector development and has assumed a growing role in attracting new business and investing in companies and audiovisual projects in the city.

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Minas Gerais is the state that has progressed most in the development of the audiovisual sector since 2015, with structuring policies for professional training, attraction of companies, infrastructure and investment in production. P7 Criativo is the hub of audiovisual activities in the city ofBelo Horizonte, capital of the state. The Audiovisual Pole of Zona da Mata, in the city of Cataguases, offers production structure with studios and technical training.

Other regional associations, such as those in the State of Rio Grande do Sul, the State of Santa Catarina, the State of Paraná and the North, Midwest and Northeast united regions, have begun to develop more audiovisual structures, with the support of local government entities and greater involvement of local entrepreneurs.

For other audiovisual industry players, see Appendix.

3.1. Film Sector The Brazilian theatrical sector is essentially a private one, with hundreds of local independent production companies and a strong presence of foreign agents in distribution and exhibition segments. As with other audiovisual activities in Brazil, local theatrical production is funded by public incentives, which represent the vast majority of resources destined for Brazilian independent film production.

While local Brazilian comedies have generated the highest box office in recent years, several Brazilian independent productions in other genres have garnered awards in international film festivals, such as “Central do Brasil/Central Station” and “Tropa de Elite/Elite Squad” in Berlin, and Oscar nominees “Cidade de Deus/City of God”, “Última Parada: 174/Last Stop 174” and “O Menino e o Mundo/ The Boy and The World”, resulting in stronger interest for Brazilian screenwriters and filmmakers’ forthcoming projects.

In Brazil, there are both local distributor offices of the US majors and local independent distributors. Both are active in the production of local films, with the use of public resources and incentives. Although distribution of local films is not solely dependent on public resources, a disproportionate share of national film funding does rely on tax incentives. Local theatrical distribution ishighly concentrated in U.S. majors’ content, with an estimated 80-85% market share. Major studios dominate the market through the exploitation of mostly commercial films, and smaller local independent distributors must often submit to commercial conditions imposed by the majors.

According to Ancine, national distributors sold 95.8% of the Brazilian films in 2017, with 90.7% of the income. Although there has been an increase in the number of independent theatrical distributors in recent years, most important independent distribution remains concentrated with very few companies, led by Paris Filmes and Downtown Filmes.

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Chart1 – Box Office Breakdown of Distributor 2017

Others 11%

Disney Downtown/Paris 7% 19%

Paris 8%

Universal Sony 18% 9%

Fox 11% Warner 17%

Source: OCA – Ancine 2017

Table 2 - Distributor Market Figures 2017

Number of Share of titles Admission Distributor Admission Income (R$) Income share titles exhibited exhibited share

National distributors 224 96% 15,827,588 90.90% 218,851,035.56 90.70%

International distributors 8 3.60% 1,180,594 6.80% 15,960,738.17 7% International-National 1 0.40% 401,960 2.30% 5,594,424.97 2.30% Co-distributor Total 223 1 17,410,142 100% 241,406,199.00 100%

In 2017, the Brazilian theatrical sector sold 181,2 million tickets (184,3 million in 2016) for 693 feature films (766 in 2016), generating R$ 2,7 billion at the box office. In 2017, 460 new titles were released (458 in 2016), 158 of which are Brazilian productions (142 in 2016) that sold together 17,4 million tickets (9.6% market share) with R$ 241 million box office (8.9% market share). See Table 3 below.

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Table 3 - Brazil Theatrical Market Figures 2012-2017 Indicator 2012 2013 2014 2015 2016 2017 Admissions 146,598,376 149,518,269 155,612,992 173,022,509 184,324,379 181,168,439 Admission in Brazilian films 15,654,862 27,789,804 19,060,705 22,500,245 30,413,839 17,410,142 Admissions in foreign films 130,943,514 121,728,465 136,552,287 150,522,264 153,910,960 163,758,297 Admissions in Brazilian films 10.68% 18.59% 12.25% 13.00% 16.50% 9.60% Gross box office (R$) 1,614,022,223 1,753,200,572 1,955,943,573 2,351,585,859 2,599,251,044 2,716,642,243 Brazilian box office (R$) 158,105,661 297,072,056 221,887,006 277,808,326 362,776,086 241,406,199 Foreign box office (R$) 1,455,916,562 1,456,128,516 1,734,056,567 2,073,777,533 2,236,474,958 2,475,236,044 Releases 326 397 393 454 458 460 Brazilian releases 83 129 114 132 142 158 Foreign releases 243 268 279 322 316 302 Brazilian releases over total 25.46% 32.49% 29.01% 29.07% 31.07% 34.34% Ticket per capita 0,76 0,74 0,77 0,85 0,89 N/A Average ticket price per capita 11.01 11.73 12.57 13.59 14.1 15.0 Source: from 2002-2008: Filme B. except Brazilian release numbers: Filme B and Apuração Ancine; 2009-2016: Ancine/ Sistema de Acompanhamento da Distribuição em Salas de Exibição (SADIS).

However, Brazil remains “underscreened” given its enormous population. At the close of 2016, despite Brazil’s population of 206 million, it had only 3,160 screens compared to 6,225 in Mexico, with a population of 122 million. See Table 4 below.

Table 4 - Latin America: Theatrical Market Indicators 2016 Argentina Brazil Chile Colombia Costa Rica Mexico Peru Venezuela Population 2016 (million) 43,6 206,1 18,2 48,8 4,9 122,3 31,5 31,1 GDP per capita 2016 (M USD) 12,425 8,587 12,910 5,623 11,749 8,699 5,727 10,755 Gross box office 2016 (M USD) 267,4 744,7 131,7 172,6 41,4 792,0 161,4 ~¹ Admissions 2016 (million) 50,9 184,3 27,4 61,4 7,4 321,0 51,1 19,1 Average ticket price 2016 (USD) 5.3 4.0 4.8 2.8 5.6 2.5 3.2 ~¹ Average admissions per capita 2016 1.2 0.9 1.5 1.3 1.5 2.6 1.6 0.6 Screens 2016 933 3,160 366 1,006 151 6,225 613 449 Digital screens 2016 868 3,148 366 1,006 149 5,976 613 408 National market shares 2016 14.4% 16.5% 6.4% 7.8% 0.8% 10.0% 11.2% 2.3% Source: European Audiovisual Observatory 2017

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Independent Brazilian companies may apply for funding according to the incentives listed in Section 4 below. The FSA is currently the most relevant source of the investments for film production, whose financing is complemented by major distributors’ investments through The Audiovisual Act (Law 8,685/93 – articles 3 and 3-A), as well as with private companies sponsorship through tax incentives. Brazilian independent distributors have access to FSA resources to invest in film productions and prints and advertising expenses (P&A), while major distributors generally take advantage of the tax incentives provided by articles 3º and 3º-A of Law 8,685/93, through which they may select the Brazilian independently-produced audiovisual project where the amount equivalent to the tax incentive will be invested. Depending on the tax incentive, the local distributor office of the majors may also act as investors or co-producers of this content, in addition to distributing them. Coproduction, investment and distribution agreements based on the use of these incentives must abide by Ancine’s regulations.

3.1.1. Market Entry Strategies Preferred business strategies to enter/expand in the market should consider identifying an appropriate distribution partner and/or setting up an office in country with local production partners to comply with local import regulations. Companies pursuing long-term market entrance/expansion should consider setting up their own regional or local office in country. It is a cost of doing business in the local market and may alleviate the high tax burden and complex licensing procedures in Brazil. Production companies located in regional hubs other than Rio de Janeiro and São Paulo have been beneficiaries of more favorable incentives from Ancine’s public policies for regional development. Canadian producers should also consider partnering with these local producers and become familiar with new, additional investments made by different Brazilian States and Municipalities.

Brazilian market events and festivals offer strategic opportunities to meet with distributors and local producers. The RioMarket in October is considered the most relevant market event for theatrical business and meeting place for Rio de Janeiro and São Paulo companies, andthe newcomer MAX – Minas Audiovisual Expo is now considered a good opportunity to meet and reach local companies from other hubs.

3.1.2. Key Decision Makers, Market Agents and Stakeholders In the Brazilian theatrical sector, the relevant decision-makers for international content producers or distributors are their local counterparts, and may be divided into the following general categories: N Brazilian independent film producers who may enter into co-production agreements, with or without an international treaty. See Appendix for producer associations lists; N Brazilian independent film distributors who may acquire an international film for distribution in Brazil such as H2O, Esfera, Arthouse, Vitrine; N Local branch offices or subsidiaries of major studios and independents which distribute US major and independent films, and Brazilian films in the Brazilian market: Fox, Warner, Universal, Sony, Paramount, Diamond, Disney;

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N Municipal government entities such as RioFilme and SPcine which can invest in, or distribute selected Brazilian titles. 3.2. Television Sector Television is the dominant medium in the Brazilian audiovisual landscape, and the main source of entertainment in the country. Over 67 million Brazilian homes have television sets, equivalent to 97.2% penetration of Brazilian households. Pay-TV services accounted for 18.9 million subscribers at the end of 2016, and in first quarter of 2017, this number fell to 17.8 million subscribers. See Table 5 below.

Table 5 - Brazil Television Market Figures 2012-2016 Indicator 2012 2013 2014 2015 2016 Pay-TV channels (with HD similar channels)¹ 177 188 200 236 246 Pay-TV channels (without HD similar channels)² N/A N/A N/A 165 171 Qualified space Brazilian channels (with HD 13 19 23 27 27 similar channels)² Qualified space Brazilian channels (without HD N/A N/A N/A 19 19 similar channels)² Share of the Brazilian³ independent production in 8.48% 10.70% 10.41% 10.70% 10.92% Pay-TV programing Number of Pay-TV subscriptions (millions)⁴ 16,2 million 18,0 million 19,6 million 19,1 million 18,9 million Household with television(millions)⁵ 61,1 million 63,3 million 65,1 million 66,1 million N/A Source: 1. Ancine and Anuário Converge de Mídias 2009 (2011 e 2012); 2. Ancine; 3.Films, TV series and TV-specific productions; 4.ANATEL; 5. Instituto Brasileiro de Geografia e Estatística - IBGE.

One peculiar aspect regarding Brazilian content broadcast on local free-to-air TV channels is that it is, in its great majority, produced by the networks themselves and affiliates. The presence of free- to-air TV in almost all Brazilian households does not result in a massive acquisition of independent Brazilian production content by the leading national networks. By far the leading Brazilian content on networks continues to be scripted content in the form of telenovelas. On the other hand, local independent producers have recently undertaken co-production of several dramatic series with networks, and also to produce (work-made-for hire) international formats. There are no local content quotas for broadcast channels in Brazil. Brazilian free television sector continues to be dominated by the Globo TV Network and its subsidiaries, while in the Pay-TV sector Globosat (Globo Group’s TV programmer) competes with the major TV programmers but exercises a very significant control over content licensing, prime- time telecast grids and the theatrical-to-television release windows as well. Globofilmes (Globo›s theatrical division) is still a relevant player in the co-production of feature films and docs, of whom it retains domestic and sometimes international licensing rights for TV and video on demand (VoD).

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Cable and satellite operators are also subject to a fixed levy on foreign content and foreign advertising released on their channels and foreign ownership in media outlets is limited to 30 %, including the print and “open broadcast” (non-cable) television sectors. Law 12,485/2011, known as the “Pay-TV Law,” established quotas for Brazilian independent production in prime time on Pay-TV channels, substantially increasing the number of hours with local content. This quota only applies to productions that obtain the CPB issued by Ancine (See Section 5.1 below). In December 2017, 101 Pay-TV channels were registered with Ancine as being obliged to comply with quotas that vary from 3h30min to 12h a week. This highly favorable scenario for production and acquisition of Brazilian productions in the Pay-TV sector is expected to continue until 2021/2022, when the renewal of the obligatory quotas will be evaluated. The Brazilian independent television production landscape changed dramatically since passage of Law 12,485/2011, resulting in the marked increase of independently-produced local content and the upgrading of professional producers, yielding commercially successful fiction series and reality shows. See Appendix for a list of selected Brazilian distributors focused on content originally produced for television. International sales of audiovisual content for free-to-air or Pay-TV in other territories, as well as for in-flight entertainment, now ensure additional revenue to their producers. Animated content and productions for kids have offered significant investment opportunities by clothing, toys and school materials companies among others, in the licensing of brands and characters use in retail products. There are no restrictions for a distribution company to invest in production financing and participate as a co-producer in this segment. The Brazilian financing system also allows distribution companies to co-finance pre-sales as an investment to access FSA resources. Foreign distributors may, for example, finance pre-sales and licenses for the Pay-TV segment in Brazil, consequently leveraging FSA resources to finance the production of content.

3.2.1. Market Entry Strategies Brazilian producers and television channels are increasingly interested in coproducing with other countries, in order to create original content that can reach global audiences. Audiovisual content markets are the best place to meet these Brazilian content creators and producers. At these markets, Brazilian producers regularly offer to international producers and channels, their original content, and explain their close relationships with the production and programming network directors in Brazil.

Pay-TV channels operating in Brazil cover a wide range of genres, and there are opportunities to sell documentaries, dramas, comedies, reality shows, formats, animations and live action content for kids and preschool. To sell audiovisual products for a Brazilian programmer, it is worth attending local or international market events and meeting their acquisition executives. To sell audiovisual content to a multinational programmer, it is worth contacting the Latin American regional programming and acquisitions executives.

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Non-Brazilian productions may be acquired by Brazilian networks in markets such as NATPE, MIPCOM and RIO2C. International television networks broadcasting in Brazil acquire non-Brazilian content through their headquarters in the US, very often for exhibition in several countries of Latin America.

3.2.2. Key Decision Makers, Market Agents and Stakeholders Brazil has five national private free-to-air channel networks: Globo, Record TV, SBT, Band e Rede TV. They are present in all 26 Brazilian states and in the Federal District. There are also regional networks and several local television private free-to-air channels. TV Brasil is the federal government public channel. Some Brazilian states own television channels as well, such as TV Cultura from São Paulo and Rede Minas from Minas Gerais.

National Pay-TV main programmers include Globosat (a division of Grupo Globo), Band, Fundação Padre Anchieta (from the State of São Paulo and which owns TV Cultura). The principal international Pay-TV programmers operating in Brazil are Fox, Sony, Turner, Discovery, NBCUniversal, Viacom, Disney, A&E and HBO. Note that the list of Pay-TV channels broadcasting in Brazil is regularly updated by Ancine at https://ancine.gov.br/lei-da-television-paga/ classificacao-canais. For a complete list of channels, please see Appendix.

Ancine has authorized 82 “Qualified-Space Channels”, for which it has established a minimum quota of 3h30min of Brazilian content per week. There are 15 such “Brazilian Qualified-Space Channels” that, during prime-time, must broadcast qualified Brazilian audiovisual content. Four channels are known as “Super Brazilian Channels”, which must broadcast at least 12 hours of Brazilian independent productions daily (at least three of them during prime time).

3.2.3. Coproduction with Television channels Television networks or their owners invest in all or part of the production budget, with or without the use of tax incentives. In addition to participation in marketing revenues, the network or programmer holds rights for commercial exploitation in certain territories and, in some cases, for platforms other than Pay-TV.

The definition ofwhich projects will be financed by the network or its owner starts with the proposal from the independent producer. Projects may be submitted at the request of the network or spontaneously. The presentation is made in internal pitching sessions in the programming company or in business meetings at market events. American television networks usually submit production investment decisions to their US head offices.

The project development process is usually followed closely by television network executives, which may propose an investment contract at this stage of development, tied to its option to co-produce or acquire the content. In other cases, it is up to the independent producer to invest in the development of the project prior to signing a co-production agreement. Public resources are available for project development, both from Ancine and by state or municipal agencies.

18 Brazil Film and Television Market Report 2018

3.2.4. Production service Generally television networks or their owners contract a local company to create, develop, produce and deliver productions, without commercial exploitation rights for the production company.

3.2.5. Branded content Production of non-advertising branded audiovisual content is financed by companies holding brands aimed at reaching their audiences through fiction and non-fiction programming. The production company is often contracted by an advertising agency serving the company that owns the brand.

3.3. Online Exhibitors/ VoD Operations VoD services are currently in accelerated expansion in Brazil, and will show the most significant revenues growth for audiovisual content producers and distributors. At present, the Ministry of Culture and Ancine are leading a discussion within the national Superior Council of Cinema (CSC) on options for a regulatory approach to these services, which has stimulated heated debate regarding possible immediate taxation on streaming services, while postponing the regulatory debate regarding protection of minors, advertising and promotion of national works. The goal is to include online video providers among agents that fund the FSA through the payment of the CONDECINE levy (see Section 5.1 below).

It is generally agreed that the VoD segment presents new relevant commercial opportunities both in services operating on the SVoD and TVoD models. At least a dozen free or low-cost online platforms offer legal viewing options to Brazilian audiences. They will likely be charged with the collection of the CONDECINE and may participate as coproducers of Brazilian independent original content.

The two most relevant Brazilian TVoD platforms at present are NET Now and Looke. Although VoD players do not disclose information about revenue or number of subscribers, it is generally believed that YouTube is the market leader in terms of number of users, and that NET Now, Globo Play and Netflix are the leaders in terms of paying users. Forthcoming regulations may require disclosure of this information. Other local players are planning to enter Brazilian VoD market according to the following existing business models:

Stand-alone VoD global platforms already investing in Brazilian original productions N Amazon Prime Video

N Netflix

Other stand-alone VoD global platforms already distributing Brazilian content N iTunes Store

N Google Play

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International television programmers’ VoD platforms: N HBO Go N Fox Play N Turner’s TNT Go and Space Go N Sony’s Crackle N Esporte Interativo Plus N Watch ESPN Relevant Brazilian television networks and programmers VoD platforms: N Globo Play N Globosat Play N Telecine On User-generated content platforms: N YouTube N Vimeo

Table 6 - Official List of VoD Services Available in Brazil (Ancine, May 2017) Service Website Business model Afroflix http://www.afroflix.com.br/ Free Amazon Prime Video https://www.primevideo.com/ Subscription AXN http://br.axn.com/ For Pay-TV subscribers +Bis http://maisbis.com.br/ Subscription Babidiboo.tv http://babidiboo.tv/ Subscription Canal A&E play https://play.canalaetv.com.br/ For Pay-TV subscribers Canal Sony http://br.canalsony.com/ For Pay-TV subscribers Cinemax GO https://www.cinemaxgobr.com/ For Pay-TV subscribers Cartoon Network Go http://www.cngo.tv.br/ For Pay-TV subscribers Crackle http://www.crackle.com.br/ Free if advertising-funded CrunchyRoll http://www.crunchyroll.com/ Subscription EnterPlay http://www.enterplay.com.br/ Subscription Esporte Interativo Plus http://www.eiplus.com.br/ Subscription FishTV http://www.fishtv.com/site/home/index.php Subscription Fox Play http://www.foxplaybrasil.com.br/ For Pay-TV subscribers

Continued

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Continued Table 6 - Official List of VoD Services Available in Brazil (Ancine, May 2017) Globo Play www.globoplay.globo.com Subscription Globosat Play http://globosatplay.globo.com/ For Pay-TV subscribers Google Play https://play.google.com/store Transactional HBO GO http://www.hbogo.com.br/ For Pay-TV subscribers iTunes Store https://www.apple.com/br/itunes/video/ Transactional Looke http://www.looke.com.br Subscription / Transactional Meulifetime Play https://play.meulifetime.com/ For Pay-TV subscribers Microsoft Movies & TV https://www.microsoft.com/pt-br/store/movies-and-tv Transactional Mubi https://mubi.com/ Subscription NBA TV www.nba.com/leaguepass Subscription Netflix https://www.netflix.com/br/ Subscription NET Now http://webportal.nowonline.com.br/ For Pay-TV subscribers / Transactional Oi Play http://www.oiplay.tv/ For Pay-TV subscribers / Transactional https://itunes.apple.com/br/app/planet-kids-videos-jogos- Planet Kids Subscription e-livros/id687355465?mt=8 Philos tv http://philos.tv/ Subscription R7 Play http://www.r7.com/r7-play/ Subscription Seuhistory Play https://play.seuhistory.com/ For Pay-TV subscribers Sky Online http://www.skyonline.com.br/ For Pay-TV subscribers / Transactional SmartVoD http://smartVoD.com.br/ Transactional Sony - Video Unlimited www.sony.com.br/video-unlimited Transactional Space GO http://www.spacego.tv.br/home For Pay-TV subscribers Telecine On http://telecineon.com.br/ Transactional TNT GO http://www.tntgo.tv.br/ For Pay-TV subscribers Univer https://univerparacrer.com/ Subscription Vevo www.vevo.com/ Free if advertising-funded Subscription / free if advertising-funded / Vimeo https://vimeo.com/ondemand Transactional Vivo Play http://www.vivoplay-vivo.com.br/ For Pay-TV subscribers / Transactional WatchESPN http://watchespn.com.br/ For Pay-TV subscribers YouTube http://www.youtube.com/movies Transactional

21 4 Film and Television Project Funding

The vast majority of Brazilian audiovisual production falls within one of these categories:

(a) Branded works produced by Broadcasters or Pay-TV channels developed and produced for telecast in their own grids (not necessarily independent and, often privately-funded), and

(b) National independently-produced content, funded by federal and/or municipal or state resources, and aiming at a variety of platforms (theatrical, television, VoD).

The public funding system for the Brazilian audiovisual market is considered the backbone of the audiovisual industry’s policies. The vast majority of the national independent works is produced through public funding mechanisms, and therefore, conditioned to the production and exploitation requirements established by legislation. Brazilian independently-produced audiovisual content also benefits from some statutory advantages, such as lower tax rates and compliance with screen quota obligations. A working knowledge of Brazil’s audiovisual funding policies is essential for those interested in producing Brazilian independent film and television content, in association with local producers.

Public funding of audiovisual activities occurs through two different mechanisms: direct or indirect funding. Direct funding consists of support for audiovisual projects (production, distribution or development) with resources from Ancine’s own budget, through selective calls for proposals. These are based on commercial performance and box office results of the films, as well as previous performances of the Brazilian companies applying for the funding. Indirect funding occurs through the use of tax incentives by private market agents, who undertake investment and sponsorships decisions regarding where and how to invest the amount equivalent to the incentive. Direct funding is concentrated in the FSA, and tax incentives are provided by different laws and regulations, as described below.

4.1. Audiovisual Sectoral Fund (FSA) (Law 11,437/06) The FSA is a branch of the National Culture Fund for the development of the audiovisual industry in Brazil, which is supported by the CONDECINE tax and the Telecommunications Inspection Fund. This mechanism seeks to foster entities of the audiovisual sector engaged in the production, distribution/ commercialization and exhibition of works, and services infrastructure. It relies on a number of financial instruments like investment, financing, support operations and equalization of financial charges to develop such activities. FSA resources support the following programs:

1) Program for the development of Brazilian movie theaters (PRODECINE)

2) Program for the development of the Brazilian audiovisual production sector (PRODAV)

3) Program for the development of theater infrastructure (PRÓ-INFRA)

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PRODAV is the only production focused program that is not limited to movie theaters. In order to be eligible for investment, projects must be carried out by a Brazilian Independent Producers and belong to one of the following categories:

- Fiction or animation feature film (i.e., Audiovisual work not in series, over 70 minutes long, with initial release in movie theaters); - Fiction movie made for television (i.e., Audiovisual work not in series, from 50 to 120 minutes long, with initial release on Free-TV or Pay-TV); - Documentary film; - Documentary series; - Animated series; and - Fiction series. All Audiovisual Production Projects that are granted funding from FSA must abide by the “PRODAV’s Statute” (see Appendix), which provides a series of legal and commercial requirements regarding the commercialization of these works. These rules establish, for instance, mandatory priority returns to the Fund and limitations of exploitation by private agents.

4.2. Financing Funds in the National Film Industry (“FUNCINEs”) – MP 2,228-1/2001 FUNCINEs are investment funds typically structured as “closed-end funds” which are administered by financial institutions, agencies and development banks registered with the Central Bank of Brazil and the Securities and Exchange Commission (Comissão de Valores Mobiliários - “CVM”). This mechanism allows taxpayers to deduct from the income tax due to the government (the ‘income tax owed’) 100% of the amount invested in a FUNCINE fund, provided that it does not exceed the cap of 3% of the overall income tax owed for companies, and 6% for individuals. According to Ancine’s regulation, FUNCINE can only invest in the following projects:

(i) Production of Brazilian independently-produced audiovisual works;

(ii) Construction, renovation and restoration of movie theaters owned by Brazilian companies;

(iii) Acquisition of Brazilian companies shares for production, commercialization, distribution and exhibition of Brazilian Independent Audiovisual works, and for the provision of cinematographic and audiovisual infrastructure;

(iv) Commercialization/distribution of Brazilian Independent content by Brazilian companies; and

(v) Infrastructure works carried by Brazilian companies.

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4.3. The Audiovisual Act (Law 8,685/93) This Act is in force since 1993, and is considered a fundamental driver of the audiovisual sector’s revival (the so-called Retomada). Still today, the well-known Articles 1, 1-A, 3 and 3-A are seen as part of the most important tax incentive mechanisms available for Brazilian independent productions.

4.3.1. Article 1 N Taxpayers may deduct from the income tax owed investments made in the production of Brazilian independently-produced cinematographic films in short, medium or feature-length format. Such investments are made via the acquisition of equity rights in the picture that are offered on the capital market, subject to the appropriate regulation and authorization of the CVM.

N This mechanism is often used by companies to earn some of the proceeds from the picture. It allows investors to deduct 100% of the investment from the income tax owed, as long as such amount does not exceed the 3% cap of the overall income tax owned for companies, and 6% for individuals.

N Investments made under this section can be written off in the guise of operating expenses, reducing the taxable income (i.e. before the tax rate is applied).

N Investments made under Article 1 and Article 1-A incentive mechanisms, jointly considered, cannot exceed R$ 4 million per project.

4.3.2. Article 1-A (Sponsorship) N Taxpayers may deduct from the income tax owned amounts paid in the sponsorship of Brazilian independent films, in cinematographic and video format, as follows:

- Short (up to 15 min), medium (from 16 to 70 min) and feature length (more than 70 min) formats

- television movies

- mini-series

- audiovisual work in series

- educational or cultural television program

N Amounts to be deducted should not exceed 4% of income tax owned for companies, and 6% for individuals.

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4.3.3. Article 3 N Amounts paid, credited, used, sent or delivered to producers, distributors or intermediaries abroad, such as income derived from the exploitation of foreign audiovisual works in Brazil, or the purchase or importation of audiovisual works at a fixed price, are subject to 25% withholding income tax.

N This mechanism allows foreign producers, distributors or intermediaries to use up to 70% of the withholding income tax owed (i.e., the amount that the Brazilian entity responsible for the payment is holding on behalf of the Brazilian government) to invest in the co-production of Brazilian independent films, in cinematographic and video format, as follows:

- Short, medium and feature length formats

- Television movies

- Miniseries

N Companies using this incentive mechanism are exempted from the payment of the CONDECINE - remittance, due on international transfers.

4.3.4. Article 3-A N Amounts paid, credited, delivered, used or remitted to a foreign company for acquisition or remuneration of any audiovisual works exploitation, including transmission by radio, television or any other media, of any picture or event, even sports competitions which include Brazilian representation, are subject to a 15% withholding tax.

N The foreign company (or taxpayer) may use up to 70% of the withholding tax levied on international transfers to invest in Brazilian independently-produced films, in cinematographic and video format, as follows:

- Short, medium or feature length films

- Documentaries

- Television movies

- Mini-series

- This tax incentive may also be used to fund the development of cinematographic production projects.

N The following persons and/ or companies are eligible to claim this incentive: income taxpayers, beneficiaries of royalties related to the transmission through broadcasting sounds and images and service companies of electronic mass communication of any audiovisual work or event.

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N Companies opting for this incentive are not exempt from payment of the 11% CONDECINE- remittance. However, if this mechanism is combined with the “Tax Benefits for Pay Television Programmers” (Article 39, X, of MP 2,228/2001) referred to below, the company willbe exempted from the CONDECINE remittance.

4.4. Article 39, X, of MP 2,228/2001 N This mechanism exempts international Pay-TV programmers from the payment of the CONDECINE-remittance provided that they invest 3% of the amount being remitted abroad in the co-production of Brazilian independently-produced audiovisual works, as follows:

- Short, medium or feature length formats

- Television movies

- Mini-series

- Documentaries

- Television programs of educational and cultural character

N Exploitation limits to television productions: It is important to notice that Ancine’s Deliberation n. 95/2010 establishes limits to the commercial exploitation of films produced through the tax incentive mechanisms of Art. 3-A of the Audiovisual Law and Art. 39, X of Provisory Measure n. 2-228-1, that are destined primarily to the television market. Such limitations include a mandatory requirement that the producer’s equity be proportional to its share of copyrights in the film and a 5-year time limitation applicable to the programming company in relation to its rights to commercially exploit and publicly exhibit the work starting as of the date of emission of the Certificate of Brazilian Product (CPB).

4.5. Law 8,313/91 (“Rouanet Act”) This incentive mechanism seeks to increase participation of taxpayers in national culture initiatives that are not limited to the audiovisual sector, but also includes a number of other cultural events relating to musical, theatrical, and dance arts. In addition, investments made under the Rouanet Act amount to sponsorship.

Investors do not acquire any equity share in connection with the exploitation of the work. The Rouanet Act also allows that investments be made as donations. In this case, the donor cannot display its brand or to receive any compensation for the investment that has been made.

26 Brazil Film and Television Market Report 2018

4.5.1. Article 18 N This mechanism allows taxpayers to deduct amounts given as sponsorship for or donation to the production of Brazilian independently-produced films, in cinematographic and video format, of short or medium length, from the income tax owed.

N The deduction is limited to 4% of income tax owed for companies and 6% of income tax owed for individuals.

4.5.2. Article 26 N This mechanism allows taxpayers to deduct amounts given as sponsorship for or as donation to the production of the Brazilian independently-produced audiovisual works described below, from the income tax owed.

- Television movies

- Mini-series

- Audiovisual work in series

- Educative and cultural television programs

N In the case of sponsorships, the deduction corresponds to 60% of the investment made by individuals, and 30% of the investment made by companies. In the case of donations, the deduction corresponds to 80% of the investment made by individuals and 40% of the investment made by companies. In both cases, the overall deduction is limited to 4% of income tax owed for companies and 6% of income tax owed for individuals. Like in Article 1 of the Audiovisual Act, this mechanism also allows the investment to be written off as operating expenses, reducing the taxable income.

27 5 Key Legal and Regulatory Concepts

In the face of a highly regulated market, foreign producers seeking to develop projects in Brazil should be aware of general legal and regulatory concepts. While some of them are of copyright nature (and illustrate the main characteristics of Brazil’s author protection system and how they can affect negotiations), most are related to the legal and regulatory implications of the public funding system and are a reflection of national content protectionist measures. This section of the Report focuses on key concepts for understanding the system and operating through it as a foreign agent.

5.1. Copyrights and Regulation Audiovisual works protection:

N The Brazilian Copyright Act (Law 9,610/1998) protects audiovisual works, such as a film or a television production, even if they are not registered. The term of protection is 70 years calculated starting as of January 1st of the year after the year of commercial release. As audiovisual works are considered collective works, the production company is the copyright owner, while the director and the screenplay or treatment writer are the original authors.

Author-oriented system:

N It is crucial to provide accurate language in all agreements dealing with film and television productions due to the author-oriented legal system, according to which the author is always the individual who created the work, and also to several limitations provided by the copyright law, such as the extension of moral rights and the restrictive interpretation required for licensing and assignment of copyrights.

Transactions general requirements:

N (i) Legal transactions relating to copyright shall be interpreted restrictively; (ii) Prior authorization of the author of a literary, artistic or scientific work shall be required for any kind of use; (iii) Each mode of exploitation should be expressly and independently authorized/ licensed; (iv) Copyrights may be wholly or partly transferred to third parties subject to certain limitations.

Brazilian audiovisual work:

N An audiovisual work is considered Brazilian when it fulfills one of the following sets of requirements:

28 Brazil Film and Television Market Report 2018

(a) it is produced by a Brazilian company (as defined below) registered before Ancine; directed by a Brazilian citizen or a foreigner living in Brazil for more than 3 years; and at least 2/3 of the artists and technicians are Brazilians or have been residing in Brazil for more than 5 years;

(b) it is produced by a Brazilian company (as defined below) registered before Ancine, in association with producers of other countries that have co-production treaties with Brazil, according to the terms of such treaties; or

(c) it is coproduced by a Brazilian company (as defined below) registered before Ancine, in association with companies from other countries that do not have co-production treaties with Brazil, as long as the Brazilian producer is the owner of, at least, 40% of the economic rights over the work, and, at least, 2/3 of the artists and technicians are Brazilians or have been residing in Brazil for more than 3 years.

N The following artists and technicians shall be taken in consideration for the purposes of assessing the number of Brazilians working in projects according to situations “a” and “c” above: author of the screenplay treatment; author of the full screenplay; director or animation director; photography director; art director, even in animation films; direct sound technician; image editor/assembler; musical director/ original soundtrack composer; main actors and actresses or dubbing artists in animation films; executive producer; main sound editor or sound designer; and sound mixer.

Brazilian independently-produced audiovisual work: N A Brazilian independently-produced audiovisual work is defined as one whose majority of patrimonial rights is owned by a company that has no direct or indirect association, or any sort of corporate liaison with broadcast, Pay-TV, electronic communications or telecommunications companies.

N Considering that the Brazilian audiovisual public policy is centered on developing local independent companies, only Brazilian independent works are eligible to receive financial resources from public funding mechanisms.

Brazilian company: N To be characterized as a Brazilian company under MP 2,228-1/2001, the production company must be (i) incorporated under Brazilian laws, (ii) headquartered and administered in Brazil, (iii) have the majority of its total and voting stock capital owned, directly or indirectly by Brazilians (born or naturalized for more than 10 years), (iv) which must detain actual power to decide for the company. (MP 2,281-1, Art. 1, §1o).

N All production companies with activities in the Brazilian territory must be registered with Ancine, according to the procedure provided by IN 91/2010. This registration process includes full disclosure of corporate structure, allowing the agency to classify the company as foreign, Brazilian or Brazilian and independent.

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CONDECINE:

N The Contribution for the Development of the National Cinematographic Industry (CONDECINE) is a form of levy on the transmission, production, licensing and distribution of cinematographic and video-phonographic works for commercial purposes, instituted by MP 2,228-1/2001.

N It is also due on payment, credit, employment, remittance or delivery of audiovisual works royalties related to producers, distributors or intermediaries located abroad. Since Law 12,485/2011 entered into force (which establishes a regulatory framework for the Brazilian Pay-TV market), CONDECINE is also due by telecommunications services providers, whose infrastructure can effectively or potentially distribute audiovisual content.

N The amounts collected through CONDECINE are directly reverted to the promotion of the national sector, funding the FSA. With the increase in the volume of resources, the FSA has become the largest mechanism to encourage the Brazilian audiovisual sector, making investments in all segments of the productive chain of the sector. The modalities of CONDECINE are described below:

M CONDECINE Title: Due on commercial exploitation of audiovisual works in each market segment: movie theaters, home video, pay TV, open television and other markets). The value of the contribution varies according to the type of work (advertising or other), the market segment and, in the case of non-advertising works, the duration (short, medium or long-length). For works organized in series, the levy bears on chapters or episodes. It is due every five years for non-advertising works and every 12 months in the case of advertising works.

M CONDECINE Teles: Established by Law 12,485/2011, it is due by concessionaires, licensees and authorized telecommunications services providers, whose infrastructure is or can be used for the distribution of audiovisual content. The contribution must be collected annually, by March 31, for the services licensed, through December 31 of the previous year. M CONDECINE Remittance: It is an 11% rate over the remittance abroad of amounts related to audiovisual works exploitation royalties. It is essentially connected to the incentive mechanism according to which taxpayers can opt to, instead of paying the CONDECINE, apply 3% of the income tax due on the remittance in independently- produced audiovisual content projects, approved by Ancine, which will be exempt from the payment of CONDECINE.

Certificate of Brazilian Product (CPB): N This is the certificate received by a Brazilian audiovisual work, in order to certify its nationality and its independent status (or not). This document is mandatory for all Brazilian audiovisual works, independent or not, since it allows the works to be treated according to the legal regime reserved for national works.

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N Favorable treatment conferred by this certificate and the relevant implications are described along this report, according to the public policy to which they relate. For example, Brazilian works pay a reasonably smaller amount of tax (CONDECINE, Section 5.1), and are eligible for compliance to screen quota obligations (as described below).

Certificate of Registered Title (CRT): N This is the certificate received by any work to be commercialized in Brazil, regardless of nationality, type, length or purpose.

N The payment of the applicable tax, CONDECINE, is one of the requirements of the registration process for any audiovisual work, whose procedures are provided by Ancine’s IN 95 (for advertising content) and INs 104 and 105 (for non-advertising works).

Audiovisual Work Project: N This is the overall production plan to be presented and approved by Ancine, in accordance with the provisions of IN 125. Once the Project is approved, it is eligible to receive public funding from various mechanisms as discussed herein.

Managing power over the film: N It is the power to control the work’s patrimony, which means that the producer must be the owner of the majority of the copyrights over the film, and possess all prerogatives of use and exploitation of the work directly or grant rights to third parties to do so.

N In order for the producer’s managing power and ownership of rights to be preserved, the assignment of copyrights over the film must be for a limited term and under no circumstances can it exclude the producer’s prerogatives over the work indefinitely.

Accounting for the Audiovisual Work Project: N Once the Audiovisual Work Project is concluded, the Brazilian producer is accountable to Ancine regarding the production of the film and the use of public funding. Civil, criminal and administrative liability provisions are applicable for any violations of laws or Ancine’s regulations in this respect. N Accountability to Ancine implies providing the Agency (physically or electronically) with a series of fiscal and contractual documents that certify that public funding was spent accordingly to the previously approved project. Ancine also requires the filing of reports concerning the accomplishment of the project, financial analysis, a budget analysis, proof of payments for services and staff, invoices and the history of the bank accounts related to the project, among others. N In case the accountability reports are not approved by Ancine or in case the Agency identifies violations of its norms, the producer will be subject to different penalties, depending on the violation, such as being prohibited to receive incentive funds or present new projects for Ancine’s approval, or required to return the incentive amounts received for the project, plus a 50% fine.

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“Screen quotas”: N Cinematographic exhibition companies are obliged to include in their programming a given number of Brazilian cinematographic feature-length films. The number of days to comply with the quota, the diversity of titles to be displayed, and the limit of maximum occupancy of cinemas of the same complex by the same work are established annually by Presidential Decree. N Other requirements and conditions for the fulfillment and measurement of the quota are regulated by Ancine, through Normative Instruction No. 88/2010. N The required number of days is proportional to the number of screens in the theater complex. N In order to comply with screen quota obligations, full-length works must meet the following requirements: (i) have a valid CPB; (ii) have a CRT valid for the exhibition market segment, and (iii) be released theatrically prior to any other electronic media segments. N There are no quotas for free-to-air channels. The local content quota for Pay-TV is described in Section 3.2 of the Report. International coproduction under treaty: N An audiovisual work produced under an international coproduction agreement is one produced by a Brazilian producer in association with producers from foreign countries. In practical terms, this means that such works will be treated as national work both in Brazil and in the foreign co-producers’ countries of origin, and consequently, will be entitled to the benefits granted to national works in these countries (such as tax benefits, access to public funding and content quotas). N Hence, works merely produced with foreign investment (through Brazilian tax incentive mechanisms or not) are not considered international co-productions. N In order to be granted Brazilian nationality and enjoy the legal prerogatives related thereto, a work produced under an international coproduction agreement must be performed under two circumstances: (i) If the foreign co-producer is from a country with whom Brazil has celebrated an international co-production agreement, the work will be recognized as Brazilian as long as it is accordance with the specific treaty. - In this case, all specific aspects of the co-production (such as minimum investment percentages, economic rights distribution, types of work and market segments, commercialization aspects etc.) must abide by the Agreement’s requirements. - At the time of conclusion of this report, Brazil maintains coproduction agreements with: Germany, Argentina, Canada, Chile, Spain, France, India, Israel, Italy, Portugal, United Kingdom and Venezuela. Brazil also maintains multilateral agreements with Ibero-American countries (Argentina, Chile, Colombia, Bolivia, Ecuador, Cuba, Spain, Mexico, Nicaragua, Panama, Paraguay, Peru, Spain, Dominican Republic Uruguay and Venezuela).

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(ii) If the foreign co-producer is from a country with which Brazil has not celebrated an international co-production agreement, the work will be recognized as Brazilian as long as it follows the requirements provided by article art.1°, V, b e c, MP 2,228-1/2001.

- According to this section, (i) at least 2/3 of the artists and technicians enrolled in production must be Brazil or resident in Brazil for at least 3 years, and (ii) at least 40% of the work’s economic rights must be held by the Brazilian co-producer. Requirements to meet the minimum Brazilian participation have already been described in herein above.

N Legislation does not require presentation of international coproduction projects before Ancine, unless the production is financed (in its majority or not) by Brazilian federal public resources. Presentation before Ancine is only necessary in order to assure recognition of the work as Brazilian.

N For works produced with public funds, distribution limits and requirements vary according to the funding mechanisms that financed the film.

5.2. Coproductions under the Brazil-Canada Treaty The Coproduction Agreement Brazil-Canada was signed in January 27th, 1995 and ratified by Decree Nº 2,976/1999. Its goal is to establish a framework for the development of audiovisual relations between both countries, particularly for film, television and video co-productions.

Its scope encompasses projects, regardless of length, including animation and documentary productions, produced either on film, videotape or videodisc, or in any other format hitherto unknown, for exploitation in theatres, on television, videocassette, and videodisc or by any other form of distribution (including new forms of audio-visual production and distribution). However, it does not include new media and technologies, such as games.

The proportion of the respective contributions of the co-producers of the contracting parties may vary from 20% to 80% of the budget for each co-producer. Each co-producer shall be required to make an effective technical and creative contribution. In principle, this contribution shall be in proportion to his or her investment. Patrimonial rights and revenue share shall be proportional to the respective contributions to the production financing, and be subject to approval by the competent authorities of both countries.

As per technical staff requirements, the Agreement establishes that producers, writers and directors of co-productions, as well as the technicians, performers and other production personnel participating in such co-productions, must be Canadian or Brazilian citizens, or permanent residents of Canada or Brazil. Exceptions must be subject to approval by the competent authorities of both countries. Please refer to the list of Brazil-Canada productions provided by Ancine found in the Appendix.

33 6 Education and Training

The Appendix includes a comprehensive list of educational and training programs for the Audiovisual industry in Brazil, including technical and specialized. Also included is the list of film courses and programs represented by FORCINE - The Brazilian Forum for the teaching of Film and Audiovisual Subjects.

34 7 Key Theatrical and Television Industry Sectoral Events

7.1. Market Events in Brazil N RIO2C - RIO CREATIVE CONFERENCE (formerly RioContentMarket): takes place in Rio de Janeiro in April, bringing together more than 300 players and 3000 delegates, focusing on content for television, VoD and new digital media. www.rio2c.com

N RIOMARKET (under Rio de Janeiro Int’l Film Festival): takes place in Rio de Janeiro in October, associated with the city’s major film festival, focusing on production and distribution for cinema and television. www.riomarket.com.br

N MAX - MINAS AUDIOVISUAL EXPO: takes place in the city of Belo Horizonte, state of Minas Gerais, in August, with a focus on television content production and gathering much many producers from outside the states of Rio de Janeiro and São Paulo.

For additional information, visit: www.minasgeraisaudiovisualexpo.com.br

7.2. Film Markets with Brazilian Booth or Delegation N Sundance Film Festival, Park City, Utah – US - January

N European Film Market, Berlin - Germany – February

N Marché du Film, Cannes- France - May

N Paris Coproduction Village, Paris- France – June

N Locarno Festival, Locarno- Switzerland – August

N Venice international Film Festival, Venice - August

N San Sebastian International Film Festival, San Sebastian - Spain – September

N Ventana Sur, Buenos Aires – Argentina - November

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7.3. TV/VoD Content Markets with Brazilian Stand or Delegation N NATPE, Miami – US, January

N KIDSCREEN, Miami – US, February

N SXSW, Austin – US, March

N Annecy Festival/Mifa, Annecy – France – June

N Sunny Side of the Doc, La Rochelle – France – June

N Mediamorfosis Brasil, São Paulo – Brazil – September

N MIPJunior, Cannes – France – October

N MIPCOM, Cannes – France – October

N IDFA, Amsterdam - Netherlands – November

N Content London, London – UK – November

N Ventana Sur, Buenos Aires – Argentina – November/December

N Asia TV Forum, Singapore – December

N Chile Doc, Santiago – Chile – December

36 8 Appendix

List of Appendix Contents:

8.1. List of Acronyms 8.2. Government Organizations 8.3. Industry Organizations 8.4. Private Sector Associations 8.5. Key Publishing and Distribution Companies 8.6. Studio Facilities, Special Effects, Post-production Houses and Laboratories 8.7. Film Commissions 8.8. List of Educational Programs 8.9. List of Channels 8.10. Brazil-Canada Productions 8.11. List of Relevant Legislation 8.12. Industry Data and Graphs

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8.1. List of Acronyms

8.1.1. Technical terms, definitions, sectorial programs and mechanisms AV – Audiovisual CONDECINE – Contribution to the Development of a National Film Industry CAGR – Compound Annual Growth Rate CPB – Brazilian Product Certificate CRT – Certificate of Registered Title FSA – Audiovisual Sectoral Fund FUNCINE – Financing Funds NGO – Non-government Organizations OTT – Over-the-top (streaming services) P2P – Peer-to-Peer PRODAV – Program for the Development of the Brazilian Audiovisual Production Sector PRODECINE – Program for the Development of Brazilian Movie Theaters PRÓ-INFRA – Program for the Development of Cinema Infrastructure SCB – Box Office Control System SVoD – Subscription Video on Demand TVoD – Transactional Video on Demand VoD – Video on Demand

8.1.2. Audiovisual sector organizations, related institutions Ancine – Brazilian National Film Agency APEX – Brazilian Trade and Investment Promotion Agency APRO – Brazilian Association of Production of Audiovisual Works BNDES – National Development Bank BRAVI – Brazil Audiovisual Independent CSC – Superior Council of Cinema CVM – Securities and Exchange Commission FORCINE – Brazilian Forum for the Teaching of Film and Audiovisual Subjects LATC – Latin America Training Center MPAA – Motion Pictures Association America

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REBRAFIC – Brazilian Film Commission Network SATED – Union of Artists and Technicians at Fun Shows in the State of Rio de Janeiro SEBRAE – Brazilian Small and Medium Business Administration SEDCMRJ – Union of Cinematographic Distribution Companies of the Municipality of Rio de Janeiro SIAESP – Union of the Audiovisual Industry of the State of São Paulo SICAV – Interstate Union of the Audiovisual Industry STIC – Interstate Union of Workers in the Cinematographic and Audiovisual Industry

8.1.3. Universities and technical training institutions AIC – International Film Academy CEUNSP – Nossa Senhora do Patrocínio University Center FAAP – Armando Álvares Penteado Foundation FTC – Technology and Sciences Faculty PUC - Pontifical Catholic University UAM – Anhembi Morumbi University UEG – Goias State University UFF – Fluminense Federal University UFJF – Juiz de Fora Federal University UFMG – Minas Gerais Federal University UFPA – Pará Federal University UFPEL – Pelotas Federal University UFRB – Recôncavo da Bahia Federal University UFRJ – Rio de Janeiro Federal University UFSC – Santa Catarina Federal University UFSCAR – São Carlos Federal University UNB – University of Brasilia UNICAMP – Campinas State University UNILA – Integração Latino-America Federal University UNISUL – University of Southern Santa Catarina UNP – University of Potiguar USP – São Paulo University

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8.2. Government Organizations

N Ancine – Brazilian National Film Agency Brief description: Ancine – Brazilian National Film Agency – is the regulatory office responsible for the development, regulation, and oversight of the cinema and audiovisual market in Brazil.

Contact name: Christian de Castro – President or Gustavo Ferreira Rolla – International advisory Email: [email protected] Phone: +55 (21) 3037-6344 / (21) 3037-6313 Website: https://www.ancine.gov.br/ Address: Avenida Graça Aranha, 35 – Centro - CEP: 20030-002 - Rio de Janeiro, RJ – Brazil

N SpCine Brief description: Spcine is the São Paulo film and audiovisual company. It acts as an office of development, financing, and implementation of programs and policies for the film, television, games and new media sectors. The objective is to recognize and stimulate the economic and creative potential of the São Paulo city’s audiovisual and its impact in cultural and social spheres.

Contact name: Mauricio Andrade Ramos – President Email: [email protected] Phone: +55 (11) 4571-0559 Website: http://spcine.com.br/ Address: Avenida São João, nº 281 – 6º andar - Centro – São Paulo - SP – Brazil

N BNDES – Brazilian Development Bank Brief description: The Brazilian Development Bank (BNDES) is the main financing agent for development in Brazil. Since its foundation, in 1952, the BNDES has played a fundamental role in stimulating the expansion of industry and infrastructure in the country. The Bank offers several financial support mechanisms to Brazilian companies of all sizes as well as public administration entities, enabling investments in all economic sectors. Contact name: Claudia Pimentel Trindade Prates - Director Email: [email protected]

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Phone: +55 (21) 2052-6659 | 3747-6659 Website: https://www.bndes.gov.br/SiteBNDES/bndes/bndes_en Address: Av. República do Chile, 100 – Centro, CEP: 20031-917 - Rio de Janeiro – RJ, Brazil

N RioFilme Brief description: RioFilme is a company of the Municipality of Rio de Janeiro linked to the Municipal Secretary of Culture and works in the areas of distribution, support for the expansion of the exhibition market, stimulation of the formation of the public and promotion of audiovisual production, aiming at the effective development of the audiovisual industry in Rio de Janeiro.

Contact name: Marco Aurélio Marcondes – President Email: [email protected] Phone: +55 (21) 2225-7082 Website: http://www.rio.rj.gov.br/web/riofilme/ Address: Rua das Laranjeiras 307, Laranjeiras, CEP: 22240-004, Rio de Janeiro - RJ, Brazil

N APEX – The Brazilian Trade and Investment Promotion Agency Brief description: The Brazilian Trade and Investment Promotion Agency (Apex-Brasil) works to promote Brazilian products and services abroad, and to attract foreign investment to strategic sectors of the Brazilian economy. Apex-Brasil organizes several initiatives aiming to promote Brazilian exports abroad. The Agency´s efforts comprise trade and prospective missions, business rounds, support for the participation of Brazilian companies in major international trade fairs, arrangement of technical visits of foreign buyers and opinion makers to learn about the Brazilian productive structure, and other select activities designed to strengthen the country’s branding abroad. Apex-Brasil also plays a leading role in attracting foreign direct investment (FDI) to Brazil, by working to identify business opportunities, promoting strategic events and lending support to foreign investors willing to allocate resources in Brazil.

Contact name: Roberto Jaguaribe Gomes de Mattos – President Email: [email protected] Phone: +55 (11) 4130-1830 Website: http://www.apexbrasil.com.br/en/home Address: Avenida Presidente Juscelino Kubitscheck, 28, Vila Nova Conceição 3º andar - CEP 04543-000 - São Paulo - Brazil

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8.3. Industry Organizations

N BRAVI – Brazil Audiovisual Independent Brief description: BRAVI – Brazil Audiovisual Independent – is a non-profit organization founded in 1999, with the purpose of gathering and strengthening companies, focused on the production of television content and digital media in the national and international market.

Contact name: Mauro Garcia – Executive President Email: [email protected] Phone: +55 (11) 3071-2867 Website: http://bravi.tv/ Address: Alameda Santos, 1773, sala 1207 - Bairro Jardim Paulista CEP 01419-002 - São Paulo - SP, Brazil

N Brazilian Content Brief description: The Brazilian Content is an audiovisual content export program created by the Brazil Independent Audiovisual (BRAVI) in partnership with Apex-Brasil and Ministry of Culture. It has been promoting the independent audiovisual production abroad, enabling partnerships between Brazilian and foreign companies. Our goals are to promote new co- production opportunities and develop international partnerships for television and digital media producers.

Contact name: Rachel do Valle - Executive Manager Brazilian Content Email: [email protected] Phone: +55 (21) 3268–0877 / (11) 3071-3865 Website: http://www.braziliancontent.com/# Address: Rua da Glória, 344, sala 703, CEP 20241-180, Rio de Janeiro – RJ, Brazil

N SIAESP – Union of the Audiovisual Industry of the State of São Paulo Brief description: SIAESP - Union of the Audiovisual Industry of the State of São Paulo and represents the production segment in the areas of advertising, television content, cinema, games, and infrastructure. The Union acts in defense of the sector in different instances maintaining interlocution with the executive and legislative branches.

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Contact name: João Daniel Tikhomiroff – President Email: [email protected] Phone: +55 (11) 3145-0875 / (11) 3145-0872 Website: http://www.siaesp.org.br/ Address: Av. Paulista, 1313 - 9º andar - Cj. 901 CEP: 01311-200 - São Paulo – Brazil

N APRO – Brazilian Association of Production of Audiovisual Works (advertising) Brief description: APRO - Brazilian Association of Production of Audiovisual Works isa non-profit organization that represents the interests of producers of audiovisual works (advertising and content) for more than 40 years. It actively participates in the development of this market in defense of common interests. It is present in discussions on new laws, category agreements, and proposals for market self-regulation and mechanisms to facilitate and minimize production costs. Currently, APRO has more than 80 members, who are linked to the Institutional category. In addition, it also has exclusive members of the FilmBrazil (internationalization) and Objetiva (training and brand content) platforms.

Contact name: Sonia Regina Piassa – Executive Director Email: [email protected] Phone: +55 (11) 3089-9606 Website: http://www.apro.org.br/ Address: R. dos Pinheiros, 870 - Pinheiros - São Paulo, SP - CEP: 05422-001 – Brazil

N FilmBrazil Brief description: Founded in 2003, FilmBrazil, is the international division of APRO(see above) aimed at promotion of Brazilian talent and producers and, to strengthening the country’s overall position as a global advertising production hub. It is supported bythe Brazilian Trade and Investment Promotion Agency - Apex-Brasil.

Contact name: Marianna Souza – Executive Manager Email: [email protected] Phone: +55 (11) 3089-9606 Website: http://www.filmbrazil.com/?lang=en#about Address: Rua dos Pinheiros, 870 - Cj. 161 - São Paulo - SP - CEP: 05422-001 – Brazil

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N Interstate Union of the Audiovisual Industry Brief description: The SICAV is the union representing businesspersons of the audiovisual industry, defending the interests of the audiovisual industry in the governmental and private spheres. Its actions aim at the consolidation of a sustainable model for the Brazilian audiovisual industry. The SICAV is comprised of studios, television, film and video producers, cinematographic laboratories, game producers, dubbing, finishing and leasing companies for cinematographic equipment.

Contact name: Leo Edde – President Email: [email protected] Phone: +55 (21) 2513-4555 Website: http://www.sicavrj.org.br/ Address: Rua Santa Luzia nº 685, Sala 812 – CEP: 20.030-041 - Rio de Janeiro, RJ - Brazil

8.4. Private Sector Associations

N SEBRAE – Brazilian Small and Medium Business Administration Brief description: The Brazilian Small and Medium Businesss Administratione (Sebrae) is a private non-profit entity. It is a training and development promotion agent, created to support small businesses across the country. Since 1972, it has worked to stimulate entrepreneurship and enable the competitiveness and sustainability of micro and small enterprises. The National Sebrae is responsible for the strategic direction of the system, defining guidelines and priorities for action. The state units develop actions according to the regional reality and the national guidelines. Sebrae is a training and development promotion agent, but it is not a financial institution, so it does not lend money. It articulates (together with banks, credit unions, and microcredit institutions) the creation of financial products adapted to the needs of the segment. It also guides entrepreneurs so that access to credit is, in fact, an instrument of business improvement.

Contact name: Lara Franco – Sebrae National Coordinator, National Commercial Services Sector, Sebrae Brasília Email: [email protected] Phone: +55 (61) 3348-7788 Website: http://www.sebrae.com.br/ Address: Sebrae Nacional – SGAS Quadra 605 Conjunto A – Brasília/DF – CEP 70200-904

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N Rio Negócios Brief description: The official investment promotion agency in the city of Rio de Janeiro aims at encouraging and supporting new projects on four fronts: business promotion through an internet investor portal as a fundraising and information tool for investors; identification of investment opportunities through commercial and promotional campaigns; facilitation, through follow-up on the stages of implementation of the business. Rio Negócios provides support for institutional relationship with authorities and public administration as well as advice for financial, legal, real estate ad relevant information in the strategic sectors and development of customized sector diagnostics.

Contact name: Marcelo Haddad – President Email: [email protected] Phone: +55 (21) 3031-4001 Website: http://rio-negocios.com/home/ Address: Rua Candelária, nº 9, 10º andar, Centro, CEP: 20091-904 - Rio de Janeiro, RJ – Brazil

N SEDCMRJ – Union of Cinematographic Distribution Companies of the Municipality of Rio de Janeiro Brief description: SEDCMRJ - Union of Cinematographic Distribution Companies of the Municipality of Rio de Janeiro is an Employers’ Union founded on June 1, 1965, and constituted for the purpose of study, coordination, protection and legal representation of the category of cinematographic film distributors.

Contact name: Cesar Silva – General Director Paramount Pictures of Brasil Email: [email protected] Phone: +55 (21) 2210-2400 Website: http://www.sedcmrj.com.br/ Address: Av. Rio Branco 311/11, CEP: 20046-900 - Rio de Janeiro – Brazil

N ABTA – Brazilian Pay-TV/Telecom Association Brief description: The Brazilian Pay-TV / Telecom Association, is a nationwide, non- profit organization, constituted by legal entities and other employers’ associations, with activities directly or indirectly related to services of video and audio signals broadcast, telecommunications and those of added value to subscribers. Its associates represent Pay-TV services operators (distributors), programmers, equipment suppliers and services providers (who provide equipment, installation material, accessories, parts and maintenance materials and related services).

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Contact name: Oscar Vicente Simões de Oliveira – Executive President Email: [email protected] Phone: +55 (11) 3078-9307 / (61) 3322-0066 Website: http://www.abta.org.br/overview.asp Address: Rua Paes de Araújo, 29 - cjs 181/182 - Itaim Bibi – São Paulo – SP, Brazil

N Associação NeoTV Brief description: Founded in August 1999, the NEOTV Association brings together about 130 companies among Subscription TV Operators, Internet service providers, solution and service providers, manufacturers / distributors of equipment and content distributors. Associates in the category of Pay-TV and broadband Internet operators operate in more than 2,000 cities, covering about 68% of households in Brazil, giving NEOTV a national coverage. The Association is responsible for negotiating content for independent Signature and Internet TV operators, helping them in formatting products. The entity also exercises an important institutional role in the telecommunications sector by representing the interests of its associates, seeking free competition and competitiveness in the market.

Contact name: Alex Jucius – General Director Email: [email protected] Phone: +55 (11) 2506-6599 Website: http://www.neotv.com.br/ Address: Rua Samuel Morse, nº 74, Edif. Igaratá, cj. 82, Brooklin Novo, São Paulo, SP - CEP 04576-060, Brazil

N Cinema do Brasil Brief description: Cinema do Brasil is the official government film export program operated by SIAESP (see above) with support by the federal export promotion agency, APEX. The mission of Cinema do Brasil program is to increase participation of the national film industry in international overseas markets. It provides financial support for producers to participate in major markets such as the Marché du Film in Cannes, the European Film Market in Berlin among others,

Contact name: Leila Bourdoukan – Executive Manager Email: [email protected] Phone: +55 (11) 3145-0875 Website: http://www.cinemadobrasil.org.br/en/ Address: Avenida Paulista, 1313 Conj. 901 - CEP: 01311-923 - São Paulo, SP – Brazil

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N FUNDACINE – Cinema Foundation Brief description: FUNDACINE was created in 1998 with the mission of boosting the development of the cinematographic and audiovisual industry in Rio Grande do Sul. The Cinema Foundation RS - FUNDACINE is a private, non-profit institution that aims to analyze, organize and develop the sector, as well as the diffusion of the cinema realized in the State, in national and international scale.

Contact name: Luiz Alberto Rodrigues – President Email: [email protected] Phone: +55 (51) 3226-3311 Website: www.fundacine.org.br/ Address: Rua dos Andradas, 1234 / 1006 - Bairro Centro - Porto Alegre - RS – Brazil

N Sistema Firjan Brief description: The mission of the FIRJAN System, that represents all the industries of the state of Rio, is to ensure sustainable growth considering the 104 Unions. With its five organizations (SESI (Industry Social Service of the state of Rio de Janeiro), SENAI (National Service for Industrial Learning of the state of Rio de Janeiro), IEL (Euvaldo Lodi Institute of the state of Rio de Janeiro), FIRJAN and CIRJ( Industrial Center of the state of Rio de Janeiro), the FIRJAN System works in areas such as entrepreneurial competitiveness, education and quality of life for the Brazilian worker and family. The integrated work of these organizations provides a one-stop place for support, incentives, information and solutions to stimulate the development of the industry of the State of Rio de Janeiro.

Contact name: Alessandra Cabral – Head of Audiovisual Services Email: [email protected] Phone: +55 (21) 4002-0231 Website: http://www.firjan.com.br/english/who-we-are/default.htm Address: Av. Graça Aranha, 1 - Centro – Rio de Janeiro - RJ - CEP: 20.030-002 – Brazil

N SATED – Union of Artists and Technicians at Fun Shows in the State of Rio de Janeiro Brief description: The Union of the House of Artists was founded on August 19, 1918. Created to defend the interests of the artistic class at the time, the entity received in 1931 its Trade Union Charter from the created Ministry of Labor, becoming officially representative of the artists. Until 1964, the House of Artists was divided into care and union assistance. Since the founding of the Union of Artists and Technicians at Fun Shows in the State of Rio de Janeiro (SATED-RJ), the House of Artists has assumed its exclusive assistance.

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Contact name: Jorge Coutinho – President Email: [email protected] Phone: +55 (21) 2220-8147 / (21) 2262-0395 Website: http://www.satedrj.org.br/ Address: Rua Alcindo Guanabara, nº 17 - 18º andar - Centro Rio de Janeiro - CEP: 20031-130, Brazil

N STIC – Interstate Union of Workers in the Cinematographic and Audiovisual Industry Brief description: The Interstate Union of Workers in the Cinematographic and Audiovisual Industry, is an Interstate entity that covers the territorial base of the northern, northeastern and southeastern states, Espírito Santo, Minas Gerais and Rio de Janeiro. The STIC also represents all the professionals performing the functions listed under titles II and IIIof the audiovisual area in the annexed table referred to in the statutes of the entity and all employees of companies in the audiovisual and video industry (video cassette and video- tape), raw material processing laboratories used in film and video production, sub-filming laboratories, sound and post-production studio, industry service providers, film advertising, producers, programmers and producers of audiovisual pieces, and other companies in related or related areas, according to the statute.

Contact name: Luiz Antônio Gerace da Rocha e Silva – President Email: [email protected] Phone: +55 (21) 2221-9473 / (21) 2242-6611 / (21) 2232-5697 Website: http://stic.com.br/plus/ Address: Rua do Teatro, 07 - Largo de São Francisco, Rio de Janeiro - RJ, Cep: 20.010-190, Brazil

8.5. Key Publishing and Distribution Companies

N DOWNTOWN FILMES Contact name: Bruno Wainer – Executive Director Email: [email protected] Phone: +55 (21) 3613-2600 / (21) 3613-2612 Website: www.downtownfilmes.com.br Address: Avenida das Américas, 500 Bloco 16, portaria B, Sala 313 Condomínio Downtown – Barra - CEP: 22640-100 – Rio de Janeiro – RJ, Brazil

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N DIAMOND FILMS BRASIL Contact name: Luis Calil - General Director Email: [email protected] Phone: +55 (21) 2283-6080 Website: www.diamondfilms.com/br Address: Rua da Alfândega, 100 – 3º Andar / Centro - CEP: 20.070-004 – Rio de Janeiro – RJ, Brazil

N ELO COMPANY Contact name: Sabrina Nudeliman - Director Email: [email protected] Phone: +55 (11) 3023-0173 Website: www.elocompany.com.br Address: Av Brigadeiro Faria Lima, 1903, cj 111, 11º andar - Jardim Paulistano - São Paulo/SP - CEP 01452-001, Brazil

N H2O FILMS Contact name: Sandro Rodrigues - Director Email: [email protected] Phone: + 55 (21) 2205-6760 / (21) 3251-3280 Website: www.h2ofilms.com.br Address: Av. das Américas 500 - Bloco 3 - Entrada C - Sala 304 - CEP: 22640-100 – Rio de Janeiro – RJ, Brazil

N IMAGEM FILMES Contact name: Marcos Scherer – Director Email: [email protected] Phone: +55 (11) 4052-2500 Website: www.imagemfilmes.com.br Address: Av. Andrômeda, 2000, Bloco 26 - Alphaville, Barueri – SP - CEP 06473-900, Brazil

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N IMOVISION Contact name: Jean Thomas Bernardini - Director Email: rb.moc.noisivomi@samohtnaej / [email protected] Phone: +55 (11) 3294-0720 / 3294-0721 / 3294-0722 / (11) 3051-5512 Website: www.imovision.com.br Address: Rua Tumiarú, 138 – Vila Mariana - CEP: 04008-030 – São Paulo – SP, Brazil

N PARAMOUNT PICTURES BRASIL Contact name: César Silva – Vice-President and Director Email: [email protected] Phone: +55 (21) 2210-2400 Website: www.paramountpictures.com.br Address: Av. Rio Branco, 311/11º andar – Centro - CEP: 20046-900 – Rio de Janeiro – RJ - Brazil

N PARIS FILMES Contact name: Marcio Fraccaroli – Director Email: [email protected] Phone: +55 (11) 3879-9799 Webite: www.parisfilmes.com.br Address: Av. Pacaembu, 1.702 - CEP: 01234-000 – São Paulo – SP, Brazil

N SONY PICTURES Contact name: Rodrigo Saturnino Braga – President-director Email: [email protected] Phone: +55 (11) 3584-9900 / (11) 3584-7098 Website: www.sonypictures.com.br Address: Av. das Nações Unidas, 12.995 / 12° andar Brooklin Novo - CEP: 04578-000 – São Paulo – SP, Brazil

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N UNIVERSAL PICTURES Contact name: Marcos Oliveira – Director Email: [email protected] Phone: +55 (11) 3047-3315 / (11) 98988-7596 Website: www.universal.globo.com Address: Rua das Olimpiadas, 134, 6º andar Vila Olimpia - São Paulo CEP: 04551-000, Brazil

N VITRINE FILMES Contact name: Silvia Cruz – Director Email: [email protected] Phone: +55 (11) 3081-0968 / (11) 3455-8039 Website: www.vitrinefilmes.com.br Address: Av. Dr. Arnaldo, 2417 - Perdizes, São Paulo - SP, 01255-090 - Brazil

N WARNER BROS and FOX FILM DO BRASIL Contact name: Patricia Kamitsuji - Director Email: [email protected] Phone: +55 (11) 2133-2900 Website: https://www.warnerbros.com.br/ http://www.foxfilm.com.br/ Address: Alameda Rio Negro, 585 / Bloco B – 8º e 9º andares Alphaville - CEP: 06454-000 – Barueri – São Paulo, Brazil

N SYNAPSE DISTRIBUIDORA Contact name: João Worcman – General Director Email: [email protected] Phone: +55 (21) 2537-1211 Website: http://www.synapse.com.br/ Address: Rua Benjamim Batista, 34 - Jardim Botânico, Rio de Janeiro - RJ, 22461-120

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N SATO COMPANY Contact name: Nelson Sato – General Director Email: [email protected] Phone: +55 (11) 4134-4455 Website: www.sato.television.br Address: Alameda Rio Negro, 585 - cj 152 Edificio Jacari – Alphavillle CEP: 06454-000 Barueri/SP - Brazil

8.6. Studio Facilities, Special Effects, Post-production Houses and Laboratories

N Globo Filmes Contact Name: Edson Pimentel – Executive Director Email: [email protected] Phone: +55 (21) 2540-1545 Website: http://globofilmes.globo.com Address: Avenida das Américas, 700, bloco 2, sala 301 - Barra da Tijuca, CEP: 22640-100, Rio de Janeiro, RJ – Brazil

N Polo Rio Cine Vídeo Contact Name: Neli Marinho – Coordinator Email: [email protected] Phone: +55 (21) 2421-1650 Website: http://www.polorio.com.br/ Address: Avenida Embaixador Abelardo Bueno - Pista Lateral, 2001 - Jacarepagua, Rio de Janeiro - RJ, 22775-039 – Brazil

N Estúdio O2 Filmes Contact name: Bel Berlinck - Producer Email: [email protected] Phone: 55 (11) 3644-8040 Website: http://www.o2filmes.com/ Address: Estrada Aldeia Carapicuiba, 338/02 – CEP:06709-300 – Cotia, São Paulo – SP, Brazil

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N O2 Filmes Post-Production Contact name: Igor Kupstas - Director Email: [email protected] Phone: +55 (11) 3839-9400 Website: http://www.o2filmes.com/ Address: Rua Baumann, 930 - Vila Leoopldina, CEP 05318-000 – São Paulo - SP, Brazil

N cTAV - Audiovisual technical center Contact name: Daniela Pfeiffer – General Coordinator Email: [email protected] / [email protected]. Phone: +55 (21) 3501-7821 Website: http://ctav.gov.br/ Address: Av. Brasil, 2482, Benfica - Rio de Janeiro, RJ - CEP: 20930-040, Brazil

N Casablanca Filmes Contact name: Patrick Siaretta - Producer Email: [email protected] Phone: +55 (11) 3889-2660 / (11) 3889-2610 Website: http://www.casablancafilmes.com.br/versionFlash.html Address: Avenida República do Líbano, 379 - Ibirapuera CEP: 04501-000 – São Paulo – SP, Brazil

N Mistika Post Contact name: Marcelo Siqueira - Director Email: [email protected] Phone: +55 (11) 3074-3191 Website: http://mistika.com.br/ Address: Rua Tabapua, 81 ,13 andar CEP: 04.533-010 São Paulo / SP – Brazil

N Afinal Filmes Contact name: Alexandre Rocha – Director Email: [email protected] Phone: +55 (21) 2527-0553 Website: www.afinalfilmes.com Address: Rua Conde de Irajá, 641, Botafogo, CEP: 22.271-020 – Rio de Janeiro, Brazil

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N Target Filmes Contact name: Rafael D’Oran - Director Email: [email protected] Phone: +55 (21) 2210-6419 Website: http://targetfilmes.com.br/ Address: Rua Barão do Flamengo, 22/904, Flamengo Rio de Janeiro, Brazil

8.7. Film Commissions

N REBRAFIC Brief description: Brazilian Film Commission Network – REBRAFIC is a new national non-profit Film Commission association whose objectives include: ensuring a standardized, high level of support for national and international producers, promoting all regions of Brazil as premier locations for national and international productions, and organizing and making available information on film commissions from all regions of the country. The members of REBRAFIC include 9 existing, legally-established film commissions, as well 16 film commissions in the process of formation in 14 states and the federal district.

Contact name: Steve Solot - Executive Director Email: [email protected] Phone: +55 (21) 2557-9219 Website: http://www.rebrafic.net/en/ Address: Rua da Glória, 344/703, CEP: 20241-180 – Rio de Janeiro, Brazil

Below is a list of all film commissions in Brazil provided by REBRAFIC. Some of them are still in development.

Operational Film Commissions: Amazonas Film Commission (Amazonas State) Bento FC - Bento Gonçalves (Rio Grande do Sul State) Bahia Film Commission (Bahia State) BC FILME - Balneário Camboriú Film Commission (Santa Catarina State) Garibaldi Film Commission (Rio Grande do Sul State)

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Minas Film Commission (Minas Gerais State) Santos Film Commission (São Paulo State) São Paulo Film Commission (São Paulo State) Ribeirão Preto Film Commission (São Paulo State) Rio Film Commission (Rio de Janeiro State)

Film Commissions in development: Armação de Búzios (Rio de Janeiro State) Barra do Piraí (Rio de Janeiro State) Belém (Pará State) Brasília (Federal District) Curitiba (Paraná State) Florianópolis (Santa Catarina State) Fortaleza (Ceará State) Maranhã o (Maranhão State) Mato Grosso do Sul (Mato Grosso do Sul State) Nova Friburgo (Rio de Janeiro State) Petrópolis (Rio de Janeiro State) Porto Alegre (Rio Grande do Sul State) Recife (Pernambuco State) Rede Catarinense de Film Commissions Santa Maria (Rio Grande do Sul State) Vitória (Espírito Santo State)

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8.8. List of Educational Programs

Rio de Janeiro Technical courses

NN SENAI RJ (Preferably Senai Laranjeiras branch) NN https://www.cursosenairio.com.br/cursorio/portal/lista_cursos NN SENAC – https://www.rj.senac.br/cursos/audiovisual NN Escola de Cinema Darcy Ribeiro – http://www.escoladarcyribeiro.org.br NN Academia Internacional de Cinema – https://www.aicinema.com.br NN Telezoom – http://www.telezoom.com.br/espaco/ NN A Roteiraria – Screenwriting courseswww.roteiraria.com.br/roteiraria-escola/a-escola

Graduate Programs

NN Escola Superior de Propaganda e Marketing – www2.espm.br/cursos/espm-rio/cinema-e- audiovisual NN FACHA – www.facha.edu.br/cinema NN Universidade Federal Fluminense – www.uff.br/?q=curso/cinema-e-audiovisual/108646/ bacharelado/niteroi NN PUC - www.puc – rio.br/ensinopesq/ccg/comunicacao_cinema.html NN Escola de Comunicação da UFRJ – www.eco.ufrj.br

São Paulo Technical courses

NN b_arco – http://barco.art.br NN Academia Internacional de Cinema - https://www.aicinema.com.br NN Belas Artes - http://www.belasartes.br NN Instituto de Cinema - https://www.institutodecinema.com.br

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Graduate programs

NN FAAP - http://www.faap.br/ NN Casper Líbero - https://casperlibero.edu.br/graduacao/radio-television-internet/ NN Anhembi Morumbi - http://portal.anhembi.br/graduacao/cursos/cinema-e-audiovisual/#sobre NN Escola de Comunicações e Artes from USP - http://www3.eca.usp.br/ NN Universidade Metodista de São Paulo - http://portal.metodista.br/

FORCINE - The Brazilian Forum for the teaching of Film and Audiovisual Subjects Brief description: The Brazilian Forum for the teaching of Film and Audiovisual Subjects is a non- profit association which represents on a permanent basis the institutions and Brazilian professionals dedicated to the teaching of film and audiovisual subjects, and continuously seeking the development and strengthening of that activity. http://forcine.org.br/site/quem-somos

FORCINE represents the following film schools and audiovisual training centers:

1) Latin American Training Center – LATC http://latamtrainingcenter.com/ 2) Cinema e Audiovisual – Universidade Federal de Juiz de Fora UFJF – http://www.ufjf.br/cinema/ 3) Cinema – Centro Universitário Nossa Senhora do Patrocínio CEUNSP – http://www.ceunsp.edu.br/graduacao/curso/cinema/ 4) Cinema e Audiovisual – Universidade Estadual de Goiás UEG – http://www.ueg.br/conteudo/1604_graduacao?aplicativo=consulta_ cursos&funcao=dados&variavel=80 5) Cinema e Audiovisual – Universidade Federal da Integração Latino-Americana UNILA- https://www.unila.edu.br/cursos/cinema-e-audiovisual 6) Cinema e Audiovisual e Cinema de Animação – Centro de Artes UFPEL - Universidade Federal de Pelotas - http://ca.ufpel.edu.br/cinema 7) Audiovisual e Publicidade – Faculdade de Comunicação Social UnB - Universidade de Brasília http://www.fac.unb.br/site/index.php?option=com_content&view=article&id=48&Itemid=59 8) Cinema -Comunicação Social – UNP - Universidade Potiguar - http://www.unp.br/ 9) Cinema de Animação e Artes Digitais- Escola de Belas Artes – UFMG - Universidade Federal de Minas Gerais http://www.ufmg.br/diversa/15/index.php?option=com_content&view=article&id=83%3Acine ma-de-animacao-e-artes-digitais&Itemid=35

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10) Cinema e Audiovisual – UAM - Universidade Anhembi Morumbi http://portal.anhembi.br/publique/Estude-aqui/Graduacao/Cursos/Graduacao/Cinema-e- Audiovisual-126.html 11) Cinema e Audiovisual – Instituto de Artes e Comunicação Social – UFF – Universidade Federal Fluminense - http://www.uff.br/cinevideo/ 12) Cinema e Audiovisual – UFRB – Universidade Federal do Recôncavo da Bahia - http://www.ufrb.edu.br/cinema/ 13) Cinema e Realização Audiovisual – UNISUL - Universidade do Sul de Santa Catarina http://portal2.unisul.br/content/paginadoscursos/cscinemaevideo/ 14) Cinema e Vídeo – Curso de Comunicação Social – FTC - Faculdade de Tecnologia e Ciências http://portal.ftc.br/index.php?option=com_content&task=view&id=2856 15) Cinema- Comunicação Social – PUC-RIO - Pontifícia Universidade Católica do Rio de Janeiro http://www.puc-rio.br/ensinopesq/ccg/comunicacao_cinema.html 16) Cinema- cursos de curta duração – AIC - Academia Internacional de Cinema - http://aicinema.com.br/ 17) Cinema- Faculdade de Comunicação – Fundação Armando Álvares Penteado - FAAP http://www.faap.br/faculdades/comunicacao/cinema/ 18) Cinema – UFSC - Universidade Federal de Santa Catarina http://www.cinema.ufsc.br/ 19) Comunicação (habilitações) – Escola de Comunicação UFRJ - Universidade Federal do Rio de Janeiro http://www.eco.ufrj.br/index.php/graduacao 20) Imagem e Som – Departamento de Artes – UFSCAR - Universidade Federal de São Carlos http://www.ufscar.br/~imgsom/ 21) Midialogia - Instituto de Artes – UNICAMP - Universidade Estadual de Campinas http://www.iar.unicamp.br/midialogia/index.php 22) Superior do Audiovisual- Escola de Comunicações e Artes – USP – Universidade de São Paulo http://www3.eca.usp.br/ctr 23) Tecnologia em Produção Audiovisual – PUCRS - Pontifícia Universidade Católica do Rio Grande do Sul http://www3.pucrs.br/portal/page/portal/pucrs/Capa/Graduacao/cinema 24) Cinema e Audiovisual – Universidade Federal do Pará - http://www.cinema.ufpa.br/

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8.9. List of Channels

Free-to air channels

Globo

Contact name: Gustavo Gontijo - Series Development Manager Email: [email protected]

Rede TV

Contact name: Rafael Ariais Bezerra – Acquisition Manager Email: [email protected]

SBT

Contact name: Fernando Pelegio – Artistic Director Email: [email protected]

Band

Contact name: João Jorge Saad – President Email: http://www.band.uol.com.br/tv/fale-conosco.asp

TV Cultura

Contact name: Ana Ligia de Carlos – Coproduction Coordinator Email: [email protected]

Record

Contact name: Alessandro Malerba – Productions Manager Email: amalerba@recordtv.com.br

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Pay-TV channels

Animal Planet, Discovery Home & Health, Discovery Turbo, ID, TLC, Discovery Channel

Contact name: Adriana Cechetti – Productions Director Email: [email protected]

Arte1

Contact name: Janaina Tadeu – Acquisition Coordinator Email: [email protected]

Cartoon Network

Contact name: Adriana Alcântara – Content Director Email: [email protected]

Crackle, Sony, AXN

Contact name: Barbara Teixeira – Content Developer Email: [email protected]

Discovery Kids

Contact name: Flavio Medeiros – Programming and Acquisitions Director Email: [email protected]

Disney

Contact name: Gérman Groba – Programming and Strategy Director Email: [email protected]

E! Entertainment

Contact name: Glauco José Sabino – Original Productions Manager Email: [email protected]

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ESPN

Contact name: Regiane Wohnrath – Productions Supervisor Email: [email protected]

Esporte Interativo

Contact name: Fabio Medeiros – Content Director Email: [email protected]

Fox Premium Latin America

Contact name: Jerome Merle – Original LATAM Productions VP Email: [email protected]

Globo News

Contact name: Renée Castelo Branco – Programs Supervisor Email: [email protected]

Gloob

Contact name: Paula Taborda – Content and Programming Director Email: [email protected]

GNT, +Globosat, Viva

Contact name: Suely Weller – Content Manager Email: [email protected]

HBO

Contact name: Paula Belchior – Original Productions Manager Email: pbelchior@hbo-la.com

MTV

Contact name: Roger Carlomagno – Content and Production Manager Email: [email protected]

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Multishow

Contact name: Denise Figueiredo – Content Coordinator Email: [email protected]

Nat Geo, Nat Geo Wild

Contact name: Carlos Queiroz – Original Content Senior Manager Email: [email protected]

Nat Geo Kids Latin America

Contact name: Kiko Ribeiro – Content Manager Email: [email protected]

Universal Channel, Syfy, Studio Universal

Contact name: Ana Cristina Paixão – Content Manager Email: [email protected]

Nick Jr, Nickelodeon

Contact name: Jimmy Leroy – Content and Creative VP Email: [email protected]

Off

Contact name: Leonardo Campos – Content Coordinator Email: [email protected]

Paramount Channel, Comedy Central, MTV

Contact name: Elisa Chalfon – Productions Director Email: [email protected]

Telecine

Contact name: Gabriel Cohen – Acquisitions and Coproductions Specialist Email: [email protected]

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TNT

Contact name: Carolina Marcondes – Programming Manager Email: [email protected]

Warner Channel, Space, TNT, TBS

Contact name: Silvia Elias – Content Director Email: [email protected]

Woohoo

Contact name: Pedro de Paoli Zander – Programming Manager Email: [email protected]

Zoomoo

Contact name: Rosa Crescente – Programming Director Email: [email protected]

“Super Brazilian” channels

Canal Brasil

Contact name: André Saddy – Content Director Email: [email protected]

Curta!

Contact name: Bibiana Sá - Curator and Director of Programming Email: [email protected]

Cinebrasil TV

Contact name: Maria Rita Aguilar Nepomuceno de Oliveira – Content Curator Email: [email protected]

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Prime Box Brazil

Contact name: Ramiro Azevedo – General Coordinator Email: [email protected]

8.10. Brazil-Canada Productions

Original title: AS NOVAS MISSÕES DO PEIXONAUTA

English title: Fishtronaut Type/Genre: Animation Format (Series or Film): Series Year of Production: 2013 Producers: 6935893 CANADA INC; PG - PRODUÇÕES DE CINEMA VÍDEO E TV LTDA

Original title: BRASIL SELVAGEM: PANTANAL

English title: Brazil Untamed: The Pantanal Type/Genre: Documentary Format (Series or Film): Series Year of Production: 2015, 2016 Producers: HANDEL PRODUCTIONS (EFS) INC; CRISTIAN DIMITRIUS PRODUÇÕES LTDA

Original title: ENSAIO SOBRE A CEGUEIRA

English title: Blindness Type/Genre: Fiction Format (Series or Film): Film Year of Production: 2008 Producers: TCF HUNGARY FILM RIGHTS EXPLOITATION LIABILITY COMPANY; O2 PRODUÇÕES ARTÍSTICAS E CINEMATOGRÁFICAS LTDA; RHOMBUS MEDIA INC.; BEE VINE PICTURES INC.

Original title: MEU AMIGÃOZÃO - SEGUNDA TEMPORADA

English title: My Big, Big Friend – Season Two Type/Genre: Animation Format (Series or Film): Series Year of Production: 2014, 2015 Producers: LD LABORATÓRIO DE DESENHOS LTDA; BREAKTHROUGH ENTERTAINMENT INC.

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Original title: VERMELHO BRASIL – FILME English title: Red Brazil Type/Genre: Fiction Format (Series or Film): Film Year of Production: 2014 Producers: CONSPIRAÇÃO FILMES S/A; PAMPA PRODUCTION; CD FILMS; CONSPIRAÇÃO FILMES ENTRETENIMENTO 3º MILÊNIO LTDA.

Original title: VERMELHO BRASIL – SÉRIE English title: Red Brazil Type/Genre: Fiction Format (Series or Film): Series Year of Production: 2014 Producers: CONSPIRAÇÃO FILMES S/A; PAMPA PRODUCTION; CD FILMS; CONSPIRAÇÃO FILMES ENTRETENIMENTO 3º MILÊNIO LTDA.

Original title: ZOOM English title: ZOOM Type/Genre: Fiction Format (Series or Film): Film Year of Production: 2015 Producers: O2 CINEMA LTDA; RHOMBUS MEDIA INC.

Original title: AMAZON ADVENTURE English title: Amazon Adventure Type/Genre: Drama Format (Series or Film): Film Year of Production: 2015 Producers: SK FILMS INC.

Original title: CUPCAKE AND DINOSAUR English title: Cupcake and Dinosaur Type/Genre: Animation Format (Series or Film): Series Year of Production: 2017 Producers: ENTERTAINMENT ONE LTD.

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Original title: PING AND PONG English title: Ping and Pong Type/Genre: Animation Format (Series or Film): Series Year of Production: 2016 Producers: GESTION ANNICK DE VRIES INC.

Original title: RIO HEAT (7-11) English title: Rio Heat Type/Genre: Drama Format (Series or Film): Series Year of Production: 2014 Producers: CANAZIL ENTERTAINMENT GROUP INC.

Original title: RIO HEAT (1-6) English title: Rio Heat Type/Genre: Drama Format (Series or Film): Series Year of Production: 2014 Producers: CANAZIL ENTERTAINMENT GROUP INC.

Original title: RIO HEAT (Pilot)

English title: Rio Heat Type/Genre: Drama Format (Series or Film): Film Year of Production: 2014 Producers: CANAZIL ENTERTAINMENT GROUP INC.

8.11. List of Relevant Legislation MP 2,228-1/2001:

Creates the National Cinema Agency – Ancine; establishes companies’ and audiovisual works’ registration obligations; authorizes the creation of Financing Funds of the National Film Industry – FUNCINES; creates the Contribution for the Development of the National Film Industry – CONDECINE and provides the incentive mechanism of article 39, X.

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Law 8,685/1993:

Creates incentive mechanisms for the audiovisual market, as provided by articles 1, 1-A, 3 and 3-A.

Law 12,485/2011:

Regulates the Pay-TV market, establishing Brazilian and Brazilian independent content quotas obligations, among others.

Ancine’s Deliberation n. 95/2010:

Establishes limits to the commercial exploitation of films produced through the tax incentive mechanisms of Art. 3-A of the Audiovisual Law and Art. 39, X of Provisory Measure n. 2-228-1, that are destined primarily to the TV market.

IN Ancine 106:

Provides the regulatory framework for recognition of Brazilian nationality of audiovisual works produced under international coproduction agreements. IN Ancine 123

PRODAV’s Statute (“Regulamento Geral do PRODAV”):

Provides legal and commercial requirements regarding the commercialization of works funded by the FSA.

Coproduction Agreement Brazil-Canada (27/01/1995), Decree Nº 2,976 01/03/1999:

International agreements between Brazil and Canada establishing legal guidelines for the coproduction of audiovisual works.

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8.12. Industry Data and Graphs 8.12.1. Value of Brazil Media and Entertainment Market by Sector (in U$

Filmed ntertainment

usi

ideo ames

ublisin

Source: ITA Report 2016

8.12.2. Distributors Market Share in 2016 – Admissions and Box Office Admissions by Distributor (in 2016) Box office by distributor (in US Dollar) Disney 39,870,812 169,179,215 Warner 36,596,968 154,669,729 Fox 31,031,082 125,598,017 DTF/Paris 24,387,819 81,967,817 Universal 14,134,164 59,058,978 Sony 12,275,571 51,187,835 Paris 8,232,743 32,629,802 Paramount 6,417,917 27,470,834 Imagem 6,113,079 24,053,506 Diamond Films 2,358,258 10,124,842 California 750,962 2,960,731 Playarte 476,155 1,957,462 Vitrine 452,266 1,865,068 Mares Filmes 409,640 1,794,252 Imovision 348,426 1,518,249 Others 2,008,456 8,106,160 Total 185,864,318 754,142,498 Source: FilmeB

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8.12.2.1. Box office by distributor (in USD)

Source: FilmeB

8.12.2.2. Admissions by distributor (in USD)

Source: FilmeB

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8.12.3. Brazil Exhibitor Sector # Exhibitor Number of Cinemas Number of screens Market share by number of screens 1 CINEMARK 82 610 0.196 2 CINÉPOLIS 47 359 0.115 3 KINOPLEX SEVERIANO RIBEIRO 34 198 0.064 4 UCI * 24 195 0.063 5 ARAUJO 30 143 0.046 6 CINESYSTEM 25 142 0.046 7 MOVIECOM 22 108 0.035 8 ESPAÇO DE CINEMA 18 96 0.031 9 ARCOPLEX 27 88 0.028 10 CINEFLIX 15 78 0.025 11 SERCLA 16 70 0.022 12 CINEART 12 67 0.021 13 CENTERPLEX CINEMAS 18 64 0.021 14 UCI / RIBEIRO 8 62 0.02 15 GNC 10 53 0.017 16 PLAYARTE 9 51 0.016 17 LUMIERE 12 48 0.015 18 CINEMAIS 10 45 0.014 19 MULTICINE CINEMAS 11 43 0.014 20 AFA 17 36 0.012 21 GRUPOCINE 13 33 0.011 22 CINE SHOW 11 32 0.01 23 CINE A 15 28 0.009 24 UCI / ORIENT 3 26 0.008 25 CIRCUITO CINEMAS 6 23 0.007 26 ORIENT 5 18 0.006 27 CINEPLUS 6 17 0.005 28 GRUPO ESTAÇÃO 5 17 0.005 29 ROXY CINEMAS 4 17 0.005 30 CINE LASER 5 12 0.004

Continued

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Continued 8.12.3. Brazil Exhibitor Sector 31 MOBI CINE 5 12 0.004 32 GRACHER 4 12 0.004 33 M.M.C. CINEMAS 9 11 0.004 34 CINEMAXX 6 10 0.003 35 CINEMAGIC 4 10 0.003 Source: Filme B Box Office/Exibidores - Pesquisa: Filme B Observations: It was considered exhibitors with more than 10 rooms. Market share was calculated on a 3118 room total basis. * Partnerships included

8.12.4. Brazil Exhibitor Park Figures 2012-2016 Indicator 2012 2013 2014 2015 2016 Number of screens 2,517 2,678 2,833 3,005 3,160 Number of digital screens (DCI pattern) 784 1,353 1,770 2,874 3,148 Number of 3D screens 617 854 1.039 1.190 1.280 Number of multiplexes 701 721 746 742 771 Admissions per room 77,067 75,068 71,585 68,037 65,216 Source: from 2002 to 2005: Filme B - from 2006 to 2015: Sistema Ancine Digital - SAD, SADIS, IBGE, Filme B.

8.12.5. Total Theatrical Admissions 200-2017 (in millions)

Source: OCA - ANCINE 2017

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8.12.6. Admissions and Box Office for Films Exhibited 2017

Admission Box Office Average admission Titles Released Titles Admissions Box Office (R$) share share price(R$) exhibited titles

Brazilian 17,410,142 241,406,198.70 9.60% 8.90% 13.87 223 158

Foreign 163,758,297 2,475,236,044.45 90.40% 91.10% 15.12 470 302

Total 181,168,439 2,716,642,243 100% 100% 15.00 693 460

Source: OCA – Ancine 2017

8.12.7. Admissions and Box Office for Films Exhibited 2016 Average Admission Box Office Titles Released Titles Admissions Box Office (R$) admission share share exhibited titles price(R$) Brazilian 30,413,839 362,780,504.93 16.50% 14.00% 11.93 217 142 Foreign 153,913,521 2,236,547,122.71 83.50% 86.00% 14.53 549 316 Total 184,327,360 2,599,327,628 100% 100% 14.10 766 458 Source: OCA – Ancine2017

8.12.8. Braziliam Film Releases 2009-2017

Source: OCA - ANCINE 2017

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8.12.9. Braziliam Film Releases by Genre 2009-2017

Fi�on oumentar Anima�on Source: OCA – Ancine 2017

8.12.10. Box Office Breakdown by Distributor 2009-2017

Source: OCA – Ancine 2017

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8.12.11. Box Office Breakdown of Braziliam Films by Distributor 2009-2017

20 ilms itrine ilmes Warner 4 4 3

Imaem 5

ters 8

Downtownaris 76

Source: OCA – Ancine 2017

8.12.10. Production and Post-Production Segment Companies

Source: Sebrae 2016 Sebrae’s Impact Study (2016) is available at (in Portuguese): http://www.bibliotecas.sebrae.com.br/chronus/ARQUIVOS_CHRONUS/bds/bds.nsf/ b09ddeb1b21ee94db5de582a7f813eb4/$File/7471.pdf

74 Global Affairs Canada Trade Commissioner Service Affaires mondiales Canada Service des délégués commerciaux

For more information The Canadian Trade Commissioner Service (TCS) In 161 offices around the world and across Canada, our trade commissioners provide expert advice and problem-solving skills—whether you export, partner, invest abroad or are looking to make Canada your next investment destination. For more information, contact a Trade Commissioner in one of our five Regional Offices hubs. In Canada Five offices across Canada, learn more at www.tradecommissioner.gc.ca In Brazil

Six offices across Brazil (Embassy of Canada in Brasilia, Consulate General of Canada in São Paulo, Consulate General of Canada in Rio de Janeiro, Trade Office of Canada in Belo Horizonte, Trade Office of Canada in Recife, Trade Office of Canada in Porto Alegre. Learn more at www.tradecommissioner.gc.ca

Commissioned by

Consulate General of Canada in Rio de Janeiro Av. Atlântica, 1130 - 13th floor Rio de Janeiro - RJ Brazil, 22021-000 Telephone: (55 21) 2543-3004 Fax: (55 21) 3444-0319 E-mail: [email protected]