Public Consultation – Regulatory Framework for Video on Demand Services in Brazil
Dear friends and colleagues
On December 23, the Brazilian National Cinema Agency (ANCINE) launched a public consultation on the Regulatory Notice on the Offer of Audiovisual Content on Demand, with the purpose of promoting a debate on the regulation on the offering of audiovisual content on demand (VoD) to Brazilian consumers.
The document under discussion derived from the report published in 2015 by the Superior Council of Cinema (advisory council responsible for audiovisual public policies, comprised of members from the government, associations and private sector), entitled “Consolidation of the Superior Council of Cinema’s Vision on the Making of a Regulatory Framework to Video on Demand Service”.
The deadline for submitting comments is March 22, 2017.
The CAvD market
The document under public consultation presents a definition for the “Audiovisual Communication on Demand (CAvD) market”. According to the Regulatory Notice, this is “a specific segment in the audiovisual market and its main characteristic is the offer to users of audiovisual content previously selected or organized in catalogs, by means of electronic communication networks, for fruition as per the users’ request and timing”.
According to ANCINE, the CAvD market is a set of activities, systems, platforms and interfaces, where two activities stand out:
(i) Video on Demand Services, services that select and organize in catalog audiovisual content to users; and
(ii) Audiovisual Content Sharing Platforms, interfaces and systems that store, provide and organize in a catalog audiovisual content produced or selected by users, for commercial purposes.
Obligations that should be in the Regulatory Framework
The Regulatory Notice presents some obligations that, according to ANCINE, should be present in the new Regulatory Framework, such as:
(i) mandatory registry with the Agency;
(ii) provision of a minimum amount of Brazilian audiovisual titles;
(iii) investments in Brazilian productions;
(iv) imposition of taxes on the CAvD segment (such as CONDECINE); and
(v) access to information related to revenues, professionals and titles.
Specific questions
ANCINE also expects to receive answers to the six (6) questions below:
(i) How should the regulation address the extraterritorial provision of CAvD activities in order to avoid competition asymmetries between Brazilian and foreign companies?
(ii) In case there is an obligation to make Brazilian audiovisual content available in catalogs, how can the regulation make this obligation effective without compromising the increase in diversity of foreign titles?
(iii) In case there is an obligation to directly invest in Brazilian productions and/or license Brazilian titles imposed to Video on Demand Service providers, how can the regulation make this obligation effective?
(iv) How can the regulation assure equal treatment in the advertisement of Brazilian audiovisual titles in catalogs?
(v) In case companies that operate in the CAvD market are charged with taxes, which percentage should be applicable?
(vi) Should the regulation set forth asymmetric obligations on market entrants (progressive tax rates, for example) in order to increase the number of players and foster competition?
***
The Digital and Regulation Law Practice Group of Mundie e Advogados remains at your disposal for further clarification.
Yours sincerely,
Mundie e Advogados
Partners:
Ana Claudia Beppu (acb@mundie.com.br)
Elinor Cotait (ecc@mundie.com.br)
Guilherme Ribas (gfr@mundie.com.br)
Kevin Mundie (klm@mundie.com.br)
On December 23, the Brazilian National Cinema Agency (ANCINE) launched a public consultation on the Regulatory Notice on the Offer of Audiovisual Content on Demand, with the purpose of promoting a debate on the regulation on the offering of audiovisual content on demand (VoD) to Brazilian consumers.
The document under discussion derived from the report published in 2015 by the Superior Council of Cinema (advisory council responsible for audiovisual public policies, comprised of members from the government, associations and private sector), entitled “Consolidation of the Superior Council of Cinema’s Vision on the Making of a Regulatory Framework to Video on Demand Service”.
The deadline for submitting comments is March 22, 2017.
The CAvD market
The document under public consultation presents a definition for the “Audiovisual Communication on Demand (CAvD) market”. According to the Regulatory Notice, this is “a specific segment in the audiovisual market and its main characteristic is the offer to users of audiovisual content previously selected or organized in catalogs, by means of electronic communication networks, for fruition as per the users’ request and timing”.
According to ANCINE, the CAvD market is a set of activities, systems, platforms and interfaces, where two activities stand out:
(i) Video on Demand Services, services that select and organize in catalog audiovisual content to users; and
(ii) Audiovisual Content Sharing Platforms, interfaces and systems that store, provide and organize in a catalog audiovisual content produced or selected by users, for commercial purposes.
Obligations that should be in the Regulatory Framework
The Regulatory Notice presents some obligations that, according to ANCINE, should be present in the new Regulatory Framework, such as:
(i) mandatory registry with the Agency;
(ii) provision of a minimum amount of Brazilian audiovisual titles;
(iii) investments in Brazilian productions;
(iv) imposition of taxes on the CAvD segment (such as CONDECINE); and
(v) access to information related to revenues, professionals and titles.
Specific questions
ANCINE also expects to receive answers to the six (6) questions below:
(i) How should the regulation address the extraterritorial provision of CAvD activities in order to avoid competition asymmetries between Brazilian and foreign companies?
(ii) In case there is an obligation to make Brazilian audiovisual content available in catalogs, how can the regulation make this obligation effective without compromising the increase in diversity of foreign titles?
(iii) In case there is an obligation to directly invest in Brazilian productions and/or license Brazilian titles imposed to Video on Demand Service providers, how can the regulation make this obligation effective?
(iv) How can the regulation assure equal treatment in the advertisement of Brazilian audiovisual titles in catalogs?
(v) In case companies that operate in the CAvD market are charged with taxes, which percentage should be applicable?
(vi) Should the regulation set forth asymmetric obligations on market entrants (progressive tax rates, for example) in order to increase the number of players and foster competition?
***
The Digital and Regulation Law Practice Group of Mundie e Advogados remains at your disposal for further clarification.
Yours sincerely,
Mundie e Advogados
Partners:
Ana Claudia Beppu (acb@mundie.com.br)
Elinor Cotait (ecc@mundie.com.br)
Guilherme Ribas (gfr@mundie.com.br)
Kevin Mundie (klm@mundie.com.br)
