Skip to content

Value Chain Analysis of the Streaming in Brazil.

Commercial Relationships

The streaming industry in Brazil is characterized by a complex web of commercial relationships connecting various players across its value chain. These relationships define how content flows from creation to consumption and how value is generated and distributed. At the foundational level are the interactions between Content Production entities (like production companies, studios, and artists) and Content Aggregation and Rights Management players (streaming platforms, distributors). Production companies create the films, series, music, and other content. They then enter into licensing agreements or production deals with streaming platforms or distributors to make this content available for streaming. These relationships can be exclusive, meaning the content is only available on a specific platform for a set period, or non-exclusive, allowing wider distribution. For original productions, streaming platforms often commission content directly from production companies, establishing a direct contractual relationship covering production costs, ownership rights, and distribution exclusivity. Music labels and artists license their catalogs to music streaming services, typically through aggregators or directly, under agreements that determine royalty payments based on usage.

Moving further down the chain, Content Aggregation and Rights Management players (the platforms) engage with Platform Development and Technology Infrastructure providers. Streaming platforms rely heavily on third-party technology providers for various services. This includes relationships with cloud computing providers (like AWS, Google Cloud) to host their vast content libraries and manage user data, and with Content Delivery Network (CDN) providers (like Akamai) to ensure efficient and high-quality content delivery to users across Brazil. These are typically business-to-business (B2B) relationships based on service level agreements (SLAs) and usage-based pricing models. Software development firms may also be contracted for specific application development or maintenance tasks.

The connection between Platform Development and Technology Infrastructure and Distribution and Delivery is critical and involves significant commercial interactions with Internet Service Providers (ISPs). Streaming platforms pay CDNs to deliver content to various points of presence, and ISPs then deliver this content over their networks to the end-user's device (the "last mile"). While direct payment relationships between streaming platforms and ISPs for standard data delivery are less common due to net neutrality principles (though this is a point of debate and regulatory attention globally and potentially in Brazil), there are often peering agreements or direct connections (interconnects) established between CDNs/platforms and large ISPs to optimize traffic flow and reduce transit costs. ISPs' primary commercial relationship in this step is with the end-user, providing internet access, which is fundamental for streaming consumption.

The Monetization and Marketing stage involves diverse commercial relationships. Streaming platforms have direct commercial relationships with Customer Access and Consumption – the end-users – through subscription fees (SVOD), or by providing free access supported by advertisers (AVOD). For AVOD, the platforms engage in B2B relationships with advertisers and advertising agencies, selling ad space and utilizing ad tech platforms for targeting and delivery. In the case of TVOD, the relationship is transactional, with users paying per content item. Bundling and partnership strategies involve commercial agreements between streaming platforms and other service providers (like telecom companies or e-commerce platforms such as Amazon Prime), where the streaming service is offered as part of a larger package. This creates B2B2C relationships, benefiting both partners through customer acquisition and retention. Marketing involves relationships with advertising platforms, media outlets (including significant spending on traditional TV in Brazil), and marketing agencies.

Finally, Regulation and Legal Frameworks influence all commercial relationships, establishing the legal boundaries and obligations. This involves interactions between streaming platforms and governmental bodies (like Ancine and the National Congress) regarding compliance with regulations, potential taxation (like the proposed Condecine), and adherence to content quotas. These are not typical commercial transactions but rather a framework of obligations and compliance requirements that impact business operations and financial flows within the value chain.

In summary, the commercial relationships in the Brazilian streaming value chain are multi-faceted, including B2B (production company to platform, platform to tech provider, platform to advertiser, platform to bundling partner), B2C (platform to consumer via subscription or transaction), and interactions shaped by regulatory bodies.

Products and Services Exchanged

Along each step of the streaming value chain in Brazil, specific products and services are exchanged between the different players, driving the flow of value.

In the Content Production phase, the primary products are completed audiovisual and audio content – finished films, series episodes, music tracks, albums, podcast episodes, and live event broadcasts. The services exchanged include creative services (writing, directing, acting), technical production services (filming, recording, editing, sound design), and post-production. Production companies deliver these finished content assets to the next stage.

At the Content Aggregation and Rights Management step, the main products exchanged are content licenses and distribution rights. Production companies, studios, and labels grant licenses to streaming platforms or distributors, allowing them to host and distribute the content. The service provided by aggregators and platforms in this stage is the curation, packaging, and management of a content library. They receive content assets and rights information and, in turn, provide access to this curated library to the next stage.

In the Platform Development and Technology Infrastructure step, the products are the streaming software applications themselves (for various devices), encoding/transcoding software, and data analytics tools. The services exchanged are primarily B2B technological services: cloud hosting and storage, content delivery services (CDN), encoding and transcoding services, software development and maintenance, and data processing and analytics services. Streaming platforms procure these services from technology providers.

The Distribution and Delivery step involves the exchange of internet connectivity services. ISPs provide internet access to homes and mobile devices. CDNs and platforms deliver data packets containing the streaming content to the ISPs' networks, and the ISPs ensure the delivery of this data to the end-user's device. The core service here is data transport and network access, enabling the flow of content from servers to consumers.

Monetization and Marketing involve the exchange of access to content and audience attention for revenue. In SVOD, the service exchanged is unlimited access to the content library for a subscription fee. In AVOD, the content is provided "free" in exchange for the user's attention to advertisements; advertisers pay the platform for displaying their ads to the platform's audience (selling impressions, clicks, or conversions). In TVOD, the product is temporary access (rental) or permanent access (purchase) to a specific piece of content. Marketing involves the service of promoting the streaming platform and its content through various channels (advertising space, promotional partnerships).

Finally, at the Customer Access and Consumption stage, the end-user "pays" with either a subscription fee (money) or their attention (viewing ads), in exchange for the service of accessing and consuming the desired content on their chosen device. The product received by the user is the entertainment or information provided by the streamed content. Device manufacturers provide the hardware (smart TVs, phones, etc.) that enable access to the streaming services.

Business Models

The commercial relationships within the Brazilian streaming value chain are underpinned by various business models, often employed in combination by a single player.

For Content Production, the business models revolve around funding and selling/licensing content. Production companies operate on project-based models, seeking financing through studio deals, platform commissions, grants, or private investment. Their revenue comes from selling or licensing the distribution rights to their finished productions. For artists and musicians, revenue comes from record sales (less relevant now), live performances, merchandise, and increasingly, royalties from music streaming based on complex per-stream payout models negotiated with labels and aggregators.

In Content Aggregation and Rights Management, the core business model for platforms is acquiring content rights. This can involve: * Licensing Agreements: Paying a fee to studios, distributors, or labels for the rights to stream existing content for a specified period. The fee can be fixed or based on performance metrics. * Original Production Deals: Commissioning and funding the creation of new content directly with production companies. The platform typically owns or has extensive rights to the resulting content. * Revenue Sharing: In some cases, particularly with smaller content providers or certain types of content (like some FAST channels), platforms might offer a revenue-sharing model based on advertising revenue or a percentage of subscription revenue attributed to that content.

Platform Development and Technology Infrastructure players predominantly operate on B2B service models. Cloud providers use pay-as-you-go or subscription-based models based on storage used, data transferred, and computing power consumed. CDN providers typically charge based on the volume of data delivered (data transfer model) and sometimes based on peak bandwidth usage. Software development firms work on project-based fees or retainer models.

For Distribution and Delivery, ISPs primarily utilize a subscription model with end-users, charging a recurring fee for internet access, usually based on speed tiers. Their B2B interactions with CDNs or platforms might involve peering agreements (exchanging traffic without direct payment, benefiting both parties by reducing transit costs) or commercial agreements for dedicated connections.

The Monetization and Marketing step showcases the most visible business models to the end-user: * SVOD (Subscription Video On Demand): The dominant model, where users pay a recurring fee (monthly or annual) for unlimited access to the content library. This provides predictable revenue for platforms. * AVOD (Advertising-Supported Video On Demand): Content is offered for free, with revenue generated by selling advertising inventory to brands and agencies. This model is growing in Brazil, with platforms like Netflix and Max introducing ad-supported tiers. * TVOD (Transactional Video On Demand): Users pay per view or per purchase of individual content titles. This is common for new movie releases (PVOD - Premium Video On Demand) or digital copies. * Bundling: A strategic model where the streaming service is included as part of a package with other services (e.g., internet, mobile, e-commerce). The revenue share between partners in a bundle is determined by their specific commercial agreement. * Freemium: Offering a basic level of content or service for free (often with ads) and a premium tier with more content or an ad-free experience for a subscription fee. Globoplay utilizes a version of this model. * FAST Channels (Free Ad-Supported Streaming TV): Curated linear-like channels delivered over streaming, monetized exclusively through advertising. Players like Roku and some platforms are incorporating FAST channels.

Customer Access and Consumption is where the end-user engages with these models, choosing which services to subscribe to, watch for free with ads, or purchase content from based on their preferences and willingness to pay.

Regulation and Legal Frameworks introduce obligations that act like a "tax" or mandatory investment on certain business models, particularly impacting SVOD and AVOD revenues through potential content contribution requirements.

Bottlenecks and Challenges

The streaming industry in Brazil, despite its significant growth, faces several bottlenecks and challenges across its value chain.

A major challenge lies within Content Production and Content Aggregation. While there is a push for local content, funding for independent Brazilian productions remains a hurdle. The proposed content quotas and mandatory contributions from platforms are intended to address this, but the specifics of implementation and ensuring the funds effectively reach and stimulate diverse local production are challenges being debated in the regulatory sphere. The high cost of producing premium content, whether local or international, also puts pressure on platforms' profitability, especially as competition for talent and resources increases.

In Content Aggregation and Rights Management, the increasing competition for popular licensed content drives up acquisition costs. Managing complex rights across different territories and platforms, especially for content with various distribution windows (theatrical, TVOD, SVOD), is technically and legally challenging. Combating content piracy also remains a significant issue in Brazil, impacting potential revenue for rights holders and platforms.

Platform Development and Technology Infrastructure face challenges related to scalability and cost-efficiency. As subscriber numbers and content libraries grow, the demand on cloud infrastructure and CDNs increases, leading to higher operational costs. Ensuring a consistent, high-quality streaming experience across Brazil's diverse internet infrastructure, including regions with lower bandwidth or less reliable connections, requires significant technological investment and optimization.

The primary bottleneck in Distribution and Delivery is directly linked to Brazil's internet infrastructure. While fiber optic penetration is increasing, digital inequality persists, particularly in remote or less developed areas. A significant portion of the population still relies on lower-speed connections or mobile data, which can hinder access to high-definition streaming and impact user experience due to buffering and lower quality. ISPs face the challenge of continually investing in network upgrades to keep pace with growing data demands from streaming and other online activities.

Monetization and Marketing present several challenges in the competitive Brazilian market. With numerous platforms available, subscriber acquisition cost is high due to intense marketing efforts. Subscriber churn (cancellation) is also a concern as users may subscribe to access specific content and then cancel, or switch between services based on price and content offerings. The increasing number of services leads to "subscription fatigue" or " análise-paralisia" for consumers. Balancing SVOD, AVOD, and potential TVOD offerings to maximize revenue while maintaining a positive user experience is complex. The effectiveness and pricing of advertising in the growing AVOD segment are still evolving.

Finally, Regulation and Legal Frameworks themselves represent a significant challenge due to regulatory uncertainty. The ongoing debates in the National Congress regarding proposed legislation (PL 8889/2017, PL 2331/2022) concerning taxation, content quotas, and regulatory oversight create an environment of uncertainty for platforms regarding future operating costs and obligations. Navigating complex tax structures and complying with potential new mandates from bodies like Ancine requires legal and administrative effort. The implementation details of content quotas, such as defining what constitutes "Brazilian content" and ensuring discoverability, can also be complex.

In conclusion, while the Brazilian streaming market is booming, addressing issues related to local content financing and distribution, managing rising operational and content costs, improving internet infrastructure across the country, combating churn and competition, and navigating an evolving regulatory landscape are crucial for sustained growth and profitability across the value chain.

References

  • Netflix e Amazon Prime dominam 45% do mercado de streaming no Brasil; veja ranking - ISTOÉ DINHEIRO - https://www.istoedinheiro.com.br/netflix-e-amazon-prime-dominam-45-do-mercado-de-streaming-no-brasil-veja-ranking/
  • PLATAFORMIZAÇÃO DO MERCADO AUDIOVISUAL: A INDÚSTRIA DE STREAMING DE VÍDEO NO BRASIL - repositorio ipea - https://repositorio.ipea.gov.br/bitstream/11058/11528/1/td_2929.pdf
  • Quanto custa assinar todos os streamings em 2025? - Meio e Mensagem - https://www.meioemensagem.com.br/midia/quanto-custa-assinar-todos-os-streamings-em-2025
  • Netflix se mantém como a plataforma com maior participação de mercado no Brasil - Tudocelular.com - https://www.tudocelular.com/mercado/noticias/n220061/netflix-lider-mercado-streaming-brasil-marco-2024.html
  • Streaming domina música no Brasil com 87% de faturamento, diz relatório - CNN Brasil - https://www.cnnbrasil.com.br/economia/streaming-domina-musica-no-brasil-com-87-de-faturamento-diz-relatorio/
  • Streaming alcança 20% de audiência no Brasil, diz jornal - Poder360 - https://www.poder360.com.br/midia/streaming-alcanca-20-de-audiencia-no-brasil-diz-jornal/
  • Netflix e Prime Video seguem líderes no mercado de streaming no Brasil, enquanto Max e Disney+ dividem terceiro lugar - Tela Viva - https://telaviva.com.br/05/04/2024/netflix-e-prime-video-seguem-lideres-no-mercado-de-streaming-no-brasil-enquanto-max-e-disney-dividem-terceiro-lugar/
  • Conselho do Congresso aprova relatório sobre regulamentação do streaming - CNN Brasil - https://www.cnnbrasil.com.br/politica/conselho-do-congresso-aprova-relatorio-sobre-regulamentacao-do-streaming/
  • A nova era do entretenimento: hábitos e desafios do streaming no Brasil - Consumidor Moderno - https://www.consumidormoderno.com.br/2024/05/13/habitos-desafios-streaming-brasil/
  • Comissão aprova distribuição de conteúdo dos canais públicos por streaming — Senado Notícias - https://www12.senado.leg.br/noticias/materias/2024/11/13/comissao-aprova-distribuicao-de-conteudo-dos-canais-publicos-por-streaming
  • Plataformas de streaming precisam ser reguladas, aponta debate no CCS - Senado Federal - https://www12.senado.leg.br/noticias/audios/2024/11/plataformas-de-streaming-precisam-ser-reguladas-aponta-debate-no-ccs
  • Distribuição de streaming caminha para modelo da TV por assinatura - TELETIME News - https://telesintese.com.br/distribuicao-de-streaming-caminha-para-modelo-da-tv-por-assinatura/
  • O que é streaming? Descubra as 8 maiores plataformas de 2024 - Netshow.me - https://blog.netshow.me/streaming/o-que-e-streaming/
  • MinC lançará plataforma de streaming dedicada à produção audiovisual brasileira - Revista Fórum - https://revistaforum.com.br/cultura/2024/5/6/minc-lancara-plataforma-de-streaming-dedicada-produo-audiovisual-brasileira-156929.html
  • JustWatch Brasil - O seu guia de busca para filmes e séries online - https://www.justwatch.com/br
  • Fibra Óptica: A Grande Aliada na Expansão das Plataformas de Streaming no Brasil - https://www.conecttelecom.com.br/blog/fibra-optica-a-grande-aliada-na-expansao-das-plataformas-de-streaming-no-brasil
  • Cultura, Inovação e Burocracia: Os Desafios do PL do Streaming - Coletiva.net - https://coletiva.net/noticias/mercado/cultura-inovacao-e-burocracia-os-desafios-do-pl-do-streaming,404876.html
  • Qual é o melhor serviço de streaming pensando em custo-benefício? - Nord Investimentos - https://nord11.com.br/blog/melhor-streaming/
  • Mercado fonográfico brasileiro ultrapassa marca dos R$ 3 bilhões - Meio & Mensagem - https://www.meioemensagem.com.br/midia/mercado-fonografico-brasileiro-ultrapassa-marca-dos-r-3-bi
  • O Crescimento Exponencial do Mercado de Streaming no Brasil e os Desafios dos ISPs – CDN STAR - https://www.cdnstar.com/blog/o-crescimento-exponencial-do-mercado-de-streaming-no-brasil-e-os-desafios-dos-isps/
  • PL do streaming tem novo nome e alíquota dobrada - Meio e Mensagem - https://www.meioemensagem.com.br/regulamentacao/pl-do-streaming-tem-novo-nome-e-aliquota-dobrada
  • Plataformas de streaming estão na mira de projetos de lei no Congresso — Rádio Senado - https://www12.senado.leg.br/radio/1/noticia/2025/03/06/plataformas-de-streaming-estao-na-mira-de-projetos-de-lei-no-congresso
  • 9 plataformas de streaming para você aproveitar em 2025 - Alares - https://blog.alares.com.br/blog/plataformas-de-streaming/
  • Netflix e mais: plataformas de streaming já são mais caras que a TV paga - VEJA - https://veja.abril.com.br/cultura/netflix-e-mais-plataformas-de-streaming-ja-sao-mais-caras-que-a-tv-paga
  • Desafios e Oportunidades do Setor Audiovisual no Brasil: Plano de Metas do Audiovisual - TELA VIVA News - https://telaviva.com.br/30/09/2024/desafios-e-oportunidades-do-setor-audiovisual-no-brasil-plano-de-metas-do-audiovisual/
  • Mercado fonográfico do Brasil fatura R$ 3,4 bilhões e cresce 21,7% em 2024 - VEJA - https://veja.abril.com.br/cultura/mercado-fonografico-do-brasil-fatura-r-34-bilhoes-e-cresce-217-em-2024/
  • Produção de conteúdos originais pelo Netflix - Academia Internacional de Cinema (AIC) - https://www.aic.com.br/blog/producao-de-conteudos-originais-pelo-netflix/
  • É passada a hora de se regular os serviços de streaming de vídeo no Brasil - telesintese - https://telesintese.com.br/e-passada-a-hora-de-se-regular-os-servicos-de-streaming-de-video-no-brasil/
  • Os desafios regulatórios do mercado de streaming no Brasil - Lex Legal - https://lexlegal.com.br/os-desafios-regulatorios-do-mercado-de-streaming-no-brasil/
  • Setor audiovisual exige investimento de 12% das plataformas de streaming em produção nacional - Cosmo - https://cosmosonline.com.br/setor-audiovisual-exige-investimento-de-12-das-plataformas-de-streaming-em-producao-nacional/
  • Watch Brasil investe em tecnologia para impulsionar crescimento do streaming - https://www.showmetech.com.br/watch-brasil-investe-em-tecnologia-para-impulsionar-crescimento-do-streaming/
  • EiTV | Tecnologia para Streaming e TV Digital - https://www.eitv.com.br/
  • Streaming: veja o top 12 MELHORES plataformas de 2025! - Minha Conexao - https://www.minhaconexao.com.br/blog/melhores-streamings/
  • Netflix é líder em market share entre plataformas de streaming no Brasil - Mobile Time - https://www.mobiletime.com.br/noticias/08/02/2024/netflix-e-lider-em-market-share-entre-plataformas-de-streaming-no-brasil/
  • A história do streaming: conheça a tecnologia que transformou nossos hábitos - Netpoint - https://www.netpoint.com.br/blog/tecnologia-streaming/
  • Entenda a cadeia produtiva do cinema brasileiro - Academia Internacional de Cinema (AIC) - https://www.aic.com.br/blog/producao-de-conteudos-audiovisuais/
  • Roku amplia opções de conteúdo no Brasil com a adição de canais FAST - Tudocelular.com - https://www.tudocelular.com/tv-e-cinema/noticias/n238030/roku-guia-tv-ao-vivo-brasil-canais-fast.html
  • Box Brazil - Homepage - https://boxbrazil.tv.br/
  • O2 Play - https://o2play.com.br/
  • Mercado de streamings de vídeo faturou US$ 2,1 bilhões somente no primeiro trimestre de 2024 - Tudocelular.com - https://www.tudocelular.com/mercado/noticias/n222363/mercado-streamings-video-faturamento-primeiro-trimestre-2024.html
  • Netflix aposta no longo prazo para ampliar produção local no Brasil - Forbes - https://forbes.com.br/forbes-tech/2023/01/netflix-aposta-no-longo-prazo-para-ampliar-producao-local-no-brasil/
  • Tempos de streaming. Implicações na produção audiovisual no Brasil - AVANCA | CINEMA - http://www.avanca.com/portal/temp/avanca%20cinema%202021/AVCINEMA_2021_012.pdf
  • Evolucoes Tecnologicas de Video no Padrao de TV Brasileiro - SET - https://www.set.com.br/wp-content/uploads/2020/12/Artigo-Evolucoes-Tecnologicas-de-Video-no-Padrao-de-TV-Brasileiro.pdf
  • Netflix supera 25 milhões de clientes no Brasil; quase metade está em plano com anúncios - F5 - https://agora.folha.uol.com.br/f5/2025/02/netflix-supera-25-milhoes-de-clientes-no-brasil-quase-metade-esta-em-plano-com-anuncios.shtml
  • Netflix ultrapassa 25 milhões de assinantes no Brasil e supera auge da TV paga - Pipoca Moderna - https://pipocamoderna.com.br/2025/02/netflix-ultrapassa-25-milhoes-de-assinantes-no-brasil-e-supera-auge-da-tv-paga/
  • Setor Cinematografico - Cadeia Global de Valor - https://www.ipea.gov.br/sites/default/files/cadeia_global_valor_setor_cinematografico.pdf