Bill approves regulations on streaming services

This Wednesday (22), a bill was approved by the Senate that places streaming companies on the list of those that will have to pay Condecine, a fee linked to the incentive of the audiovisual industry. Approval remains final and needs to be voted on again in the committee, before proceeding for analysis in the Chamber.

About the new law

Approval was made by the Economic Affairs Committee (CAE), in a vote that ended with 24 votes in favor and 0 against. In addition to the fee that streaming services will have to pay to Condecine, the text also claims that there is a quota on these platforms for national content.

According to the proposal described in the text of the PL, in addition to traditional streaming companies, such as Netflix, MAX and PrimeVideo, content sharing platforms, such as Instagram, Youtube and TikTok, as well as platforms which offer television channels on their services and the so-called FAST channels, which offer free streaming services.

Payments

According to what was communicated by the project's rapporteur, senator Eduardo Gomes (PL-TO), companies that have revenues above R$96 million must pay a fee of 3% on top of the company's annual gross revenue.

If the company has annual gross revenue that varies between R$4.8 million and R$96 million, the fee charged will be 1.5% in relation to revenue. If the company receives an amount less than R$4.8 million, there will be no taxes to be paid.

_{Case rapporteur, Eduardo Gomes (Photo: reproduction/Pedro França/Agência Senado)}

Regarding payments, there is other information worth highlighting:

• According to Eduardo Gomes, companies will be able to separate the revenue obtained from journalistic content and the advertising that was sold for this type of content, not being included in the revenue that will form part of the fee.
• According to the text, Condecine's tax rate will be cut in half if the company has at least 50% of national works in its catalog.

National quotas

Regarding the quotas of national content in the catalogue, the determination in accordance with the text of the bill was as follows:

• From 2 thousand works, at least 100 Brazilian productions will be needed
• From 3 thousand works, at least 150 Brazilian productions will be needed
• From 4 thousand works, at least 200 Brazilian productions will be needed
• From 5 thousand works, at least 250 Brazilian productions will be needed
• From 7 thousand works, at least 300 Brazilian productions will be needed

There are still other issues being addressed in the text, such as the percentage of allocation of the amount received and where the investment will be directed.

Ancine itself will be responsible for monitoring compliance with the law, which will be able to impose fines if necessary, in addition to applying other sanctions such as the suspension and cancellation of the accreditation necessary to operate in Brazil.

Condecine is an acronym for “Contribution to the Development of the National Film Industry”. The MP, which regulated Condecine, took place in 2001, being charged from 2002 onwards, with Condecine payments going to Ancine's revenues. Since 2006, with the update of the law, the proceeds began to be allocated to the Audiovisual Sector Fund.

Featured Photo: Streaming services will need to pay a fee to Condecine (Reproduction/Top_CNX/Shutterstock)