Newborn Pay-TV Law Under Scrutiny

11-16-11 © subjug

11-16-11 © subjug

The Federal Supreme Court of Brazil (STF) has set up a public consultancy for this semester of 2012, to discuss the law that regulates the pay TV regime locally (law 12.485) .

Coincidence or not, Minister Luiz Fux from STF, which had the initiative of convoking the public consultancy, was also designated the Reporter Judge of three ongoing actions filed by Partido Democrata (Adin 4679) , Associação Neo TV (Adin 4747) and Associação Brasileira de Radiodifusores (Adin 4756) respectively, that questions the constitutionality of the current law that regulates this matter.

The anti-constitutional points discussed on the actions were the limits of the control system by the National Film Agency (ANCINE); restrictions to cross property among segments of broadcasting and telecommunication sectors; limitation of foreign capital in the Brazilian audiovisual market and the mandatory broadcast of a minimum amount of national content.

The Minister declared that his goal is not only to discuss the legislative technique of the law and aspects which are intrinsically legal, but he also would like to focus on hearing specialists and entities which are engaged in this segment and will consider an analysis of the audiovisual practice of the Brazilian market and its dynamic repercussions in this sector as a whole.
The main points that will be under discussion in this public consultancy are the peculiarities of the different technological platforms, ii) activities of the value chain of the audiovisual market, iii) degree of openness and competition in the sector; iv) impacts of restrictions on foreign capital and the prohibition of cross property; v) composition of the market as for the domestic and foreign productions vi) techniques to stimulate the production and consumption of domestic content; vii) changes occurred in the market because of the new law (Law 12.485); viii) performance of Ancine ix) global background of regulation of paid TV.

In accordance with the Minister, nowadays, paid TV is already present in approximately 25% of the Brazilian households, reaching over 45 million Brazilians, as per the results provided by the Brazilian Research Institute (IBGE).

Given the broad impact that paid TV has at this point in Brazil, the discussion and correct regulation of this matter became latent.

Law 12.485, which is currently in force to regulate paid TV, is also very recent, it was approved on August 2011 and was a result of heavy discussions through 5 years before its enactment. The main goal of Law 12.485 was to improve the offer of National content.

Its text has incorporated some interesting changes as it has recognized the possibility of cross property, although I believe it has imposed too many limits and still has a very protective character which should be re-discussed.

Those who are interested in participating in the consultancy have to send an e-mail to until 8 pm of August 31, 2012.

Anna Claudia Toledo Guimaraes


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Filed under Entertainment Business, Entertainment Law Brazil

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