“We reaffirm the strength of our movie industry”, says Lula during announcement of BRL 1.6 billion for audiovisual sector

“I believe that never in the country’s history have our companions in the cultural industry heard so much good news as they did today. We are going to treat culture in Brazil with the seriousness, respect and competence it deserves. Because a country that does not invest in culture actually cannot become a country; the population is not really a people, they are just a manipulated mass. Because culture politicizes and refreshes people's minds. That is why we believe so much in culture and why we invest in it.," declared President Lula during the ceremony.

Lula highlighted his appreciation for Brazilian audiovisual productions and stressed that the government will give artists opportunities to develop projects that generate thousands of jobs. “Our movie industry reflects our resilient and creative spirit. We reaffirm the strength of our movie industry and the importance of public policies to promote this sector,” he stated.

“The policies we are currently implementing aim to ensure qualification opportunities for specialized labor, especially for the young generation, for whom the audiovisual and moviemaking sector is a poweful and ample opportunity. They are revolutionizing it, bringing new challenges,” underscored the Culture Minister, Margareth Menezes.

INITIATIVES – To boost this sector, the government is investing BRL 200 million (approximately USD 38 million) in international co-productions, the largest amount ever put forward for this type of incentive, which received 476 project proposals from 47 countries. In the scope of the Sectoral Fund for Audiovisual Production (Fundo Setorial do Audiovisual/FSA), the project calls for the expansion and modernization of Estúdios Rio, with the construction of eight new studios and the modernization of another eight, resulting in the establishment of a world class production center and the creation of 7,800 jobs (2,500 direct and 6,300 indirect).

This initiative creates opportunities and consolidates the country as a creativity and talent hub. It is also expected to stimulate investments in the tourism sector, with the success of productions filmed in Brazil attracting fans to visit famous locations and studios.

The minister pointed out that the audiovisual sector will also benefit from the New Growth Acceleration Package (Novo PAC). “At the Unified Centers of Culture Education (CEUs da Cultura), we will have exhibition rooms, and at the MovCEUs (Culture Movements), small digital studios will be available,” said the Minister. She also recalled that the Ministry approved a special measure to support cultural businesses affected by floods in Rio Grande do Sul. “We approved an emergency credit line for companies from Rio Grande do Sul of BRL 75 million [approximately USD 14 million] and suspended for up to 12 months any charges related to the current credit lines for companies and projects from that state,” Menezes reported.

CREDIT LINE — During the ceremony, the president of the Brazilian Social and Economic Development Bank (BNDES), President Aloizio Mercadante, announced the resumption of support to the audiovisual industry through the launch of the FSA Audiovisual credit line. As a partnership with the Ministry of Culture and Brazil’s National Cinema Agency (Agência Nacional do Cinema/Ancine), this credit line will have an initial budget of BRL 400 million (approximately USD 76 million) and a second phase of BRL 100 million (approximately USD 19 million).

“For the BRL 400 million, we will apply the lowest rate we currently have at BNDES; the TR, which is used for innovation. For the North and Northeast regions, we will use the TR + 0.5% per year, 12 years to repay, and four years of grace, with the lowest interest rate available in the Brazilian economy. For the remaining regions, TR + 2% per year under the same conditions. Now, for projects related to innovation and accessibility, we will apply the TR + 0.5% for all regions, eight years to repay, and a two-year grace period. For content and commercialization, TR + 2% per year”, explained Mercadante.

The resources will come from the Sectoral Fund for Audiovisual Production (FSA). The target population of the BNDES program are companies with national control. It will approve projects with a minimum value of BRL 10 million in basic financial cost tied to the Brazilian interest rate benchmark (TR), from companies in all segments of the audiovisual chain. In addition to promoting direct access to the BNDES, the program contemplates margin flexibility and assurances adopted to the sector’s characteristics. Banco Regional de Desenvolvimento do Extremo Sul (BRDE), a regional development bank, will provide a line of credit for smaller projects.

Three credit modalities will be available for the sector:

• Infrastructure: funding for acquisition, implantation and expansion of infrastructure assets;
• Innovation and Accessibility: support for investments in innovation and accessibility;
• Content and Commercialization: funding for business plans for company strengthening, focused on development, production, commercialization, and internationalization of Brazilian audiovisual content, including electronic games, as well as capacity development for companies and their professionals.

SCREEN QUOTA — During the event, President Lula signed a decree that regulates the screen quota for cinemas, as appears on Law 14.814/2024. Sanctioned in January, the regulation reinstates the quota for the commercial exhibition of Brazilian cinematographic works, mandatorily until December 2033. The purpose is to promote the appreciation of national cinema by requiring companies, the film industry, and exhibition venues to include and maintain Brazilian feature-length films in their programming, ensuring a minimum number of showings and diversity of titles.

The Mayor of Rio de Janeiro, Eduardo Paes, underscored that the audiovisual sector is strategic for the economy and for generating working posts in the city. “In this dream factory, this desire-making industry, Rio has been a protagonist. The Carioca cinematographic production is responsible for 70% of the Brazilian cinema box office. Last year, we exceeded Paris in the number of filming and locations,” he said.

RELEVANCE — The creative industry employs the largest number of youth up to 29 years of age globally and Brazilian audiovisual represents 0.6% of the country’s GDP, with over 330,000 jobs and BRL 9 billion (approximately USD 1.64 billion) in tax payments, according to the president of the Interstate Union of the Audiovisual Industry (Sindicato Interestadual da Indústria Audiovisual/Sicav) and vice president of the Federation of Industries of the State of Rio de Janeiro (Federação das Indústrias do Estado do Rio de Janeiro/Firjan), Leonardo Edde.

Actress and movie director Grace Passô emphasized the importance of cultural diversity representation in building the identity of the Brazilian population. “This entire ecosystem helps us do something that is very hard, which is to reflect upon our own identity. We increasingly need depth in order to converse and deal with tensions. The universe of Brazilian cinema contributes to building the idea of Brazil’s identity”, she argued.

HISTORY — Since it was reinstated by President Lula in 2023, over 100 audiovisual projects have been benefited from the Ministry of Culture’s investment of BRL 6,1 million (approximately USD 1.1 million) through project calls (“editais”). The investments in the sector through the Rouanet Law total BRL 971.5 million (approximately USD 176.64 million), contemplating 1,088 projects.

In 2023, the FSA destined the historical sum of BRL 1,3 billion (approximately USD 236.4 million) for the production of national content. To date, 364 movies and series, presented by 323 Brazilian production companies, have been selected. In the same year, BRL 537 million (approximately USD 97.63 million) was made available for the audiovisual sector for infrastructure projects, studio construction, equipment rental companies, innovation, and technological development.

Additionally, funding was made available for building 122 exhibition rooms and modernizing another 52 in all country regions. The goal is to stimulate enterprises in cities that do not currently have exhibition rooms, in a continuous effort to expand the Brazilian population’s access to cinemas.