On October 18, 2017 a bill of law intended to
regulate video on demand business was introduced in Congress by the
congressman Paulo Teixeira (PT). The matter has been debated inside the National
Films Agency (ANCINE) and the Minister of Culture for a long time and was
subject to a public consultation in the beginning of 2017.
As drafted, the bill of law applies to “Audiovisual Communication on Demand”
(CAvD) activities, defined as the activities aimed at offering audiovisual
content for single acquisitions, to be retained (download) or accessed
(streaming) by users, on the users’ demand and at the time they wish, using
telecommunication resources as support.
Under the bill of law, CAvD providers are (a) programmers of channels available
for individual acquisition in the pay-TV services; (b) internet application
providers that offer audiovisual content on demand; or (c) companies that
provide audiovisual content on demand to a select audience on top of any
telecommunication service; in any case (a, b or c), whenever the content is
offered to a Brazilian resident audience, regardless of the location of the
CAvD provider’s headquarters or infra-structure.
The bill of law expressly excludes from the concept of CAvD providers any
individuals and any internet application providers that provide content on a
free-of-charge basis, including social medias and social networks, and also
excludes from its scope the offering of journalistic content, services that
have audiovisual content ancillary to literature or musical content, and public
According to the bill of law, ANCINE would have authority to regulate and
supervise CAvD activities and all CAvD providers would be subject to prior mandatory
registration with that Agency, as a condition for running their business.
Companies that currently provide CAvD services and are not registered would
have 180 days to conform.
The bill of law also sets forth several regulatory obligations to CAvD providers,
such as obligation to disclose business information to ANCINE (e.g.
revenues and content offering and consumption data), minimum quotas
of national content and national independent content, obligation to give
prominent position to Brazilian content in their catalogues, obligation to
inform parental ratings, among others.
Finally, the bill of law amends the Provisional Measure 2,228-1 to impose
the payment of the Contribution for the Development of the National
Cinematographic Industry (CONDECINE) on CAvD providers with revenues higher
than BRL 3.6 million.
The bill is currently at a very preliminary stage and has still to be reviewed
and voted by the House of Representatives and the Senate, which are the two
houses of the Brazilian Congress and, afterwards, needs to be sanctioned by the
Brazilian President. During the applicable legislative procedure, amendments to
the original text may be proposed. Given the current political
instability in Brazil, it is not possible to estimate a processing time or the
likelihood of the bill being passed.