The National Cinema Agency (“ANCINE”) published on October 15, 2020 the new public consultation for Regulatory Notice nº 11-E / 2020 for the “other markets” and “Home-video business” segments, as provided for in Article 1, VI of Provisional Executive Order No. 2,228/01 (“MP”).
The object of such consultation is the study of “the regulatory convenience, the risks involved, how it can affect the audiovisual sector, and the rate of the Contribution for the Development of the National Film Industry (“CONDECINE”)”[1]. Several players were invited to give their inputs until the closing of the consultation on December 16, 2020.
/ Other markets
As already mentioned in our previous publications, the collection of CONDECINE contribution on the “other markets” is controversial. The term, which is extremely comprehensive, was finally detailed in Normative Instructions issued by the Agency, such as NI No. 105/2012 that provides in its Article 21, paragraph 2:
“Art. 21: (…)
- 2º The Other Markets enclose the following segments:
- Video on demand;
- Audiovisual broadcasted in public transportation; and
- Audiovisual broadcasted in restricted circuit ”
The above Article entitles ANCINE to collect the contribution on Video on Demand (“VoD”) services, for example. However, the inspected subjects started questioning the enforceability of such duty, as it lacked a specific legal provision regarding the taxable event, only foreseen in the NI. Therefore, ANCINE decided to submit a legislative proposal for regulating the collection of CONDECINE from the sector.
The same conclusion was arrived from the analysis of the distribution services of linear channels on the internet, as discussed in another article of this publication. The discussion also flourished within the scope of internet advertising services, as ANCINE’s attempts to collect CONDECINE on this segment were strongly debated, under the same argument. It is important to emphasize that none of these types of transmission even existed when the MP was published.
Therefore, ANCINE submitted a public consultation to collect subsidies for establishing an adequate regulation, considering all the different segments that it encompasses nowadays.
/ Home video
On the other hand, the segment defined as “home video[2]” has lost great part of its importance due to the audiovisual market transformations that led to the obsolescence of DVDs and VHS, and other pre-recorded media. ANCINE also wants to receive market inputs to assess if whether it should continue to collect the CONDECINE from this segment.
