Potential Economic Impact of a Federal Audiovisual Production Incentive in Brazil

Location: Brazil

Olsberg•SPI (SPI) recently completed an independent study that evaluated the potential impacts of a federal incentive for Brazil.

While Brazil is a significant and key market in the global audiovisual sector, it does not currently offer a federal production incentive of the kind now widely implemented.

The study found that introducing a federal audiovisual production incentive could support significant activity across Brazil’s wider economy. If a federal incentive was introduced in 2024 with an annual budget cap of US$100 million, SPI estimated that in 2030, the audiovisual production sector in Brazil could generate up to US$1.03 billion (R$5.15 billion) in direct production spend, and employ approximately 15,500 people.

The analysis, covering 2024-2030, modelled how an automatic federal incentive could impact Brazil's audiovisual production sector, and create significant economic impacts in terms of direct expenditure, Gross Value Added (GVA), employment, and employee compensation. More specifically, the study estimates the potential economic impact, over the 2024 to 2030 period, under four different scenarios:

• Scenario 1: no federal incentive introduced

• Scenario 2: introduction of a low US$25 million capped federal incentive

• Scenario 3: introduction of a higher US$100 million capped federal incentive

• Scenario 4: introduction of an uncapped federal incentive.

The study also examined strategic benefits in relation to, but not limited to, international and domestic tourism and investments in infrastructure and production supply chains. Furthermore, the study assessed the key positive developments that have taken place within Brazil’s audiovisual sector in recent years, after continued low levels of investment. 

The study utilised a mixed methodology approach, including extensive in-depth desk research, confidential consultations with policymakers and (domestic and international) production companies, and economic modelling using broad sector and detailed industry data.  The findings and calculations were tested with key industry and policy stakeholders.

Alejandra Luzardo Gutierrez, former Sector Lead Specialist – Innovation at the Inter-American Development Bank (IADB) provided the foreword, highlighting the IADB’s interest in Brazil’s audiovisual sector.

Download the study in English here and Portuguese here.

Read the study’s press release in English here and Portuguese here.

Further examples of SPI’s economic impact studies, including the 2023 analysis on a potential federal audiovisual production incentive in Mexico, here.

Contact SPI Consultant, Joshua Dedman at joshua@o-spi.com for further information on the study.