Brazil approves proposal to tax VOD services

The Superior Council of Cinema (CSC in Portuguese) unanimously approved the proposal that provides a hybrid model for the collection of the Contribution to the Development of the National Film Industry (Condecine in Portuguese) on VOD services.
“The result is seen as an advance in the search for a balanced model that serves all sectors involved in the debate,” said a statement from the Ministry of Culture.
According to the council’s decision, VOD companies can choose to pay the Condecine in two ways: over the number of Brazilian titles they distribute online or through a single fee per subscriber/transaction.
Now, the approved proposal will be transformed into a draft bill, which will be reviewed by the members of the Council at the next meeting, on August 28.
In order to encourage the presence of national content on the VOD platforms, the proposal provides discounts based on the number of national titles available on the platforms. The TV Everywhere platforms of pay TV operators and broadcasters are not including in the Condecine.