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Unprecedented study by the City Hall reveals 56,2% growth in the audiovisual economy in the last three years
Published on 23/10/2024 - 16:09 | Updated on 23/10/2024 - 16:47
Economic movement in the sector caused an impact of R$4,2 billion in 2023 - Beth Santos/City of Rio Rio City Hall released this Wednesday (23/10) the study “Economy of Audiovisual Carioca”, showing that the economic movement in the sector grew 56,2% in the last three years, became the tenth largest in the city and caused an impact of R$ 4,2 billion in 2023. This market employs more than 20 thousand workers and has consolidated itself as one of the main drivers of the local economy.
Having obtained the study, carried out by the Secretariats of Urban and Economic Development (SMDUE) and Culture (SMC), in addition to RioFilme, the Mayor of Rio, Eduardo Paes, guaranteed that he will continue to increase investments in audiovisual. He highlighted the importance of this industry for the city.
– There is one thing that is an intangible legacy, which is the construction of the image. This audiovisual industry is much more than the ISS (Service Tax) collected, the jobs that were created. Our greatest asset, which sets us apart from other places, is this group called Rio de Janeiro, which has Antônio Cícero, Tia Surica in Portela, Nelson Sargento, all this cultural production that is so alive. People want to be with Rio, date Rio, marry Rio. And this desire is built not only by our natural beauty, but also by what this cultural production, especially in the audiovisual sector, has developed about the brand of our city – he stated.
The survey details the economic impact of the sector on the city and its importance in generating qualified jobs, with low environmental impact and a strong multiplier effect. There is data on revenue, job openings, the representativeness of Rio's audiovisual production in Brazil and the world, and tax collection. In 2023, for example, R$72,1 million in ISS was collected in Rio, coming from the sector.
– There is job creation, income generation, it is a virtuous circle that we have created, with the concern that we have to act in all sectors of the audiovisual sector. We are stimulating production, post-production, distribution and also infrastructure – explained the municipal secretary of Culture, Marcelo Calero.
Rio's Undersecretary of Economic Development and Innovation, Marcel Balassiano, recalled that the City Hall is working to transform Rio into the innovation capital of Latin America.
– Last year, this sector generated more than R$4 billion in tax revenue. This represents 20 formal jobs. In addition to being a major image of the city and Rio’s soft power, the sector also has a very important economic development side.
For Alex Braga, president of Ancine, Rio is setting an example for the whole of Brazil, with its policy of investing in the audiovisual sector.
– I firmly believe that other cities and states will follow Rio’s example of investing in production, infrastructure, training and qualification. I believe that Rio will consolidate itself as the capital of audiovisual, generating these positive effects of employment, income and well-being for society.
Between 2021 and 2023, the City Hall invested R$139,4 million in the audiovisual sector through RioFilme's Pró-Carioca Audiovisual program. Last year alone, R$60,8 million was invested, including funds from the Paulo Gustavo Law. Rio also stood out as the city with the largest number of filming days in Latin America, with 7,9 thousand authorizations issued by the Rio Film Commission in 2023, surpassing major international centers such as Paris and Mexico City.
Eduardo Marques, president of RioFilme, highlighted that this announcement crowns the Rio audiovisual sector, bringing the necessary investments to Rio.
– The funding notices that remodel the entire audiovisual production chain and the productions that take place in the city attract the teams, who stay, eat in the restaurants, take the transport and generate revenue – highlighted Marques.
RioFilme announcements: inclusion and focus on diversity
Since 2021, RioFilme's calls for proposals have been inclusive, with additional points awarded to proposals led by women, black people, indigenous people, people with disabilities and trans people. Proponents whose headquarters are located in areas with a lower HDI – such as in the North and West zones, with the exception of Barra and Recreio, and residents of favelas in the central and South zones – also receive additional points, increasing their chances of selection.
To give you an idea, between 2021 and 2023, RioFilme received 2.905 proposals, 18% of which were from people based in areas with lower HDI. Of this group, 29% were selected – a difference of 61% between those registered and those selected –, attesting to the quality of the projects from proponents in areas with low HDI. The increase in the proportion between those registered (26%) and those selected (45%) is even more significant among proposals led by black, indigenous, trans or disabled people – a difference of 73%.
market trends
According to data from the Global Entertainment and Media (E&M) Survey 2023–2027, conducted by PWC in 2023, which analyzes 13 E&M segments in 53 countries, revenues from these sectors will reach US$2,8 trillion in 2027. The study indicates that the projection for Brazil is US$41,3 billion in 2027. The report also estimates that the Brazilian film market, the ninth largest film market in the world, could reach US$707 million in 2026, a higher expectation than the US$638 million in box office revenue achieved in 2019, before the Covid-19 pandemic.
Another international study, with a more specific focus on the audiovisual sector, “The Economic Impact of the Audiovisual Sector in Latin America”, carried out in 2023 by the Inter-American Development Bank (IDB), with support from Netflix, points to Argentina, Brazil and Mexico as the largest audiovisual industries in Latin America, with a combined revenue of US$20 billion in 2021, US$3 billion of which came from film production. The study also estimates the effects of the multipliers of economic activity in the audiovisual sector, concluding that for every US$10 spent in the sector in Latin America, between US$6 and US$9 are generated in the supply chain, and that for every ten jobs in the sector, between 5 and 7 are generated in other sectors.
The complete study on the Economy of Audiovisual in Rio de Janeiro is available at Rio Economic Observatory and Carioca Audiovisual Observatory.
