Cinema of Brazil - Domestic Market

Domestic Market

Since the 1970s, the quantity of film theaters has declined heavily. During the 1990s, it became common for small theaters to close while multiplex theaters, which are usually found in shopping centers, gained market share. In the last decades, the accessibility of televisions sold at lower prices combined with Rede Globo's success in making telenovelas of high production quality made cinema less attractive to lower income audiences. In addition, ticket prices increased more than 10-fold in a span of 20 years.

In the early 1990s Brazilian film production suffered as a result ofCollor's laissez-faire policy; the sector had depended on state sponsorship and protection. However, with the retomada Brazilian film regained speed, though not to the same extent it had seen before. A significant increase in audience was recorded, however, from 2000 to 2002, with 7 million viewers, to 2003, when 22 million viewers came to theaters to watch national films. Because these films were made possible thanks to incentive laws introduced in the 90's and that the number of viewers drawn in from year to year can fluctuate significantly, it is often questioned whether film production has in fact reached a certain amount of stability and whether or not it could in the future succumb to any governmental whims.

Incentive laws allow Brazilian films to receive funding from companies that, by acting as sponsors, are allowed tax deductions. A common criticism is that, through this system, though films are no longer directly controlled by state, they are, nevertheless, subject to the approval of entrepreneurs who are logically cautious as to which content they wish to associate their brands. Even with funding, there are still areas that require some struggle from filmmakers, such as distribution, television participation and DVD release.