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Value Chain Report on the Streaming Industry in Brazil

Abstract

The Brazilian streaming industry has evolved into one of the world’s most vibrant digital entertainment ecosystems. This report dissects the entire value chain—from content conception to end-user consumption—highlighting its constituent steps, the principal players and their volumes, the intricate commercial relationships that knit those steps together, and the bottlenecks that still constrain sectoral growth. Drawing on a broad set of primary and secondary sources, the analysis reveals (i) accelerating investments in local content creation, (ii) an increasingly sophisticated technology and delivery infrastructure buttressed by global cloud and CDN leaders, (iii) an intensely competitive monetization environment in which SVOD and emergent AVOD/FAST models co-exist, and (iv) a fast-maturing regulatory agenda that could reshape cost structures and domestic production incentives. Despite surging adoption—streaming already commands 20 % of total Brazilian video audience and music streaming tops 87 % of phonographic revenues—critical challenges remain around connectivity gaps, spiraling content costs, subscriber churn, piracy, and pending regulation.

Introduction

Overview of Streaming in Brazil

Streaming—the real-time delivery of audio and video over IP networks—has leap-frogged traditional broadcast and physical media to become a dominant consumption mode in Brazil. Robust smartphone penetration, rapid fibre-optic roll-outs, and the cultural centrality of audiovisual content have catalysed a market in which Brazilians subscribe to an average of 4.2 services and where Netflix alone now exceeds 25 million local customers. Music streaming revenue surpassed R$ 3 billion in 2024 (87.6 % of the phonographic market), while video platforms collectively invested about R$ 2 billion in open-TV advertising the same year—testimony to fierce rivalry for mind-share.

Purpose and Scope

This report aims to:
1. Map the complete streaming value chain in Brazil, detailing activities, actors, and flows of value.
2. Analyse key players, their market footprints, and competitive positioning.
3. Unpack commercial relationships, products/services exchanged, and prevailing business models.
4. Identify bottlenecks that inhibit efficiency or growth.
5. Offer conclusions and outline avenues for further research or policy attention. The scope covers both video and audio streaming, encompassing domestic and international participants and incorporating the current regulatory outlook.

Value Chain Definition

Core Steps and Segments

Step Segments Main Activities
1. Content Production • Film & Series • Music • Podcasts & Audio • Live Events Scriptwriting, financing, recording/filming, post-production, mastering
2. Content Aggregation & Rights Management • Licensing/Acquisition • Curation/Packaging • Rights & Royalties Negotiating licences, cataloguing, metadata, royalty tracking
3. Platform Development & Technology Infrastructure • Software/App Development • Encoding/Transcoding • CDN • Cloud/Hosting • Data Analytics UI/UX design, multi-bitrate encoding, edge caching, database management, recommendation engines
4. Distribution & Delivery • Internet Service Providers • Last-mile Delivery • Device Compatibility Network provisioning, traffic management, app optimisation across devices
5. Monetization & Marketing • SVOD • AVOD • TVOD • Bundling/Partnerships • Promotion Pricing, billing, ad-sales, bundle negotiation, ATL/BTL campaigns
6. Customer Access & Consumption • Device Usage • UI Interaction • Playback • User Behaviour App downloads, profile management, viewing sessions, binge patterns
7. Regulation & Legal Frameworks • Legislation/Policy • Regulatory Bodies • Tax & Quotas • IP Enforcement Drafting bills, compliance checks, levy collection, anti-piracy

Each step is interdependent, with data and value flowing bidirectionally—user data flows upstream for personalisation and royalty calculations, while content flows downstream to audiences.

Players Analysis

Selected Key Players and Market Estimates

Step Representative Players Detailed Profile Indicative Scale (Brazil)
Content Production Globo Studios Flagship arm of Grupo Globo; produces telenovelas, series, films for Globoplay & syndication. Hundreds of hours of prime-time content yearly; multi-million-dollar budgets per flagship series.
Conspiração Filmes Independent studio producing scripted and unscripted content for Netflix, Prime Video, TV networks. Portfolio of 40+ series/films; staff ≈ 300.
Independent Musicians via ONErpm & Som Livre Leverage digital aggregators to self-publish tracks to Spotify, Deezer, YouTube. Brazil ranked 9th worldwide in IFPI 2024 report; 70 k+ tracks uploaded monthly.
Content Aggregation & Rights Netflix Brazil Content Team Licences Hollywood & local IP; commissions originals like “Sintonia.” > 10 000 title library; double-digit R$ billion annual global content spend, ~8 % allocated to LatAm.
O2 Play Brazilian sales agent distributing indie films to 100+ platforms. Catalogue of 1 500 titles; deals with Globoplay, Prime Video, iTunes.
Platform Tech & Infra Netflix Open Connect Proprietary CDN with edge nodes in São Paulo, Rio, Fortaleza. Delivers ≥ 90 % of Netflix traffic in Brazil locally.
AWS, Google Cloud Provide elastic storage, transcoding, AI analytics to multiple platforms. AWS São Paulo region comprises 3 AZs; petabytes served daily.
Distribution & Delivery Claro, Vivo, TIM ISPs offering fibre up to 1 Gbps; mobile 5G roll-out in capitals. Fibre household penetration > 45 %; Claro alone > 9 M broadband subs.
Monetization & Marketing Netflix SVOD pioneer; introduced ad-supported tier (AVOD hybrid) in 2023. 25 M subs; ~12 M on ad-tier at R$ 18.90/month.
Globoplay Hybrid freemium + bundles (with Telecine, Premiere). > 6 M paying subs; R$ 24.90 basic plan.
Amazon Prime Video Bundled in Amazon Prime (R$ 14.90). Estimated 20 % market share; subscriber figures undisclosed.
Customer Devices Samsung, LG, TCL (Smart TV) Pre-load major streaming apps; integrate voice search. Smart-TV installed base ≈ 50 M sets.
Regulation Ancine Will administer Condecine-VoD levy, enforce quotas. Draft bills propose 4–12 % of gross local revenue for national fund.

Aggregate Market Metrics

• 31.1 million individuals accessed paid video platforms in 2022; ~70 % of Brazilians have ≥ 1 subscription.
• Streaming captured 20.1 % of total video audience (Dec 2024).
• Music streaming revenue: R$ 3.05 billion (2024), 87.6 % of phonographic market.
• Telecom/IT capex > R$ 80 billion (2023), large share supporting OTT delivery.

Commercial Relationships

  1. B2B Licensing & Commissioning
    • Producers → Platforms: exclusive or non-exclusive licences, upfront minimum guarantees, back-end royalties.
    • Platforms → Producers: original commissions with full buy-out or co-production splits (e.g., 70/30 cost share).

  2. Technology Services
    • Platforms ↔ Cloud/CDN vendors: usage-based contracts (per GB stored, per TB delivered).
    • CDN ↔ ISPs: peering or paid interconnect, governing traffic exchange and SLA metrics.

  3. Advertising & Bundling
    • Platforms ↔ Advertisers/Agencies: CPM or CPC sales for AVOD/FAST inventory.
    • Platforms ↔ Telcos/Retailers: revenue-share or cost-plus deals bundling subscriptions with broadband, mobile, or e-commerce (e.g., Mercado Livre + Disney+).

  4. Consumer Transactions (B2C)
    • SVOD: monthly auto-renew; churn mitigation via loyalty programmes.
    • TVOD: one-off digital rentals or purchases.
    • AVOD: zero price, attention-for-ads trade.

Products exchanged range from raw content assets and rights metadata to data-packets, viewer analytics dashboards, ad impressions, and ultimately consumer screen time.

Bottlenecks and Challenges

Area Key Bottleneck Impact Mitigation/Opportunity
Connectivity Uneven broadband quality in interior regions; mobile data caps Limits HD/4K uptake, raises buffering complaints Government fibre incentives; low-bitrate codecs (AV1).
Content Costs Inflationary bidding wars for premium IP; talent scarcity Margin pressure, higher subscription prices More local originals, talent development funds, AI-assisted localisation.
Piracy IPTV boxes & torrent sites widespread Revenue leakage, undermines licensing model Site blocking, legal enforcement, affordable ad-tiers.
Churn & Subscription Fatigue Consumers hop between services; macroeconomic headwinds Volatile revenue forecasts Bundles, loyalty perks, personalised pricing.
Regulatory Uncertainty Pending Condecine-VoD, quotas, tax regimes Capex/opex planning difficulty Active industry lobbying, scenario modelling.
Data & Measurement Limited unified cross-platform metrics Advertiser hesitation, opaque royalty splits Joint industry committees, watermarking technologies.

Value Chain Relationships and Business Models

Flow of Products & Services

  1. Upstream: Creative IP travels from production companies to platforms as master files plus associated rights.
  2. Midstream: Platforms transcode, store, and push assets to CDN edge nodes; ISPs ferry packets to consumers.
  3. Downstream: Viewer data flows back through ISPs/CDNs to platforms, triggering royalty calculations, ad-targeting, and content recommendation loops.

Predominant Business Models

• Subscription (SVOD): Netflix, Disney+, Globoplay—predictable ARR; growing ARPU via premium 4K tiers.
• Advertising (AVOD/FAST): YouTube, Pluto TV, Netflix Basic-with-Ads—scales with reach; CPMs ~R$ 25–30 for premium long-form.
• Transactional (TVOD/PVOD): Google Play Filmes, Apple TV—spikes around new releases; declining share overall.
• Bundling/Freemium: Amazon Prime, teleco tie-ins; lowers effective CAC.
• B2B SaaS: AWS, Akamai charge per-usage; margins dependent on capacity and energy costs.

Bottlenecks at Transaction Points

• Licensing Windowing Complexity delays catalogue refresh.
• Peering Disputes can throttle bitrate during peak events (e.g., live football streams).
• Revenue-Share Transparency tensions between labels/artists and DSPs.

Collectively, these relationships form a feedback system in which user engagement metrics inform future production and acquisition strategies, perpetuating a data-driven flywheel.

Conclusion

Brazil’s streaming market stands at an inflection point: audience penetration and revenue trajectories are robust, yet sustainable growth hinges on (i) closing digital divides, (ii) securing cost-effective local production pipelines, (iii) innovating monetization to curb churn, and (iv) shaping balanced regulation that fosters both cultural objectives and business viability. Stakeholders should prioritise infrastructure partnerships that expand fibre and 5G coverage, deepen co-production frameworks leveraging forthcoming Condecine-VoD funds, enhance anti-piracy enforcement, and develop cross-platform measurement standards to unlock brand advertising budgets. Further research is warranted on consumer willingness-to-pay under escalating bundle complexity and on the long-term impact of AI-generated content on local creative ecosystems.

References

  1. 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/
  2. PLATAFORMIZAÇÃO DO MERCADO AUDIOVISUAL: A INDÚSTRIA DE STREAMING DE VÍDEO NO BRASIL – IPEA – https://repositorio.ipea.gov.br/bitstream/11058/11528/1/td_2929.pdf
  3. Quanto custa assinar todos os streamings em 2025? – Meio & Mensagem – https://www.meioemensagem.com.br/midia/quanto-custa-assinar-todos-os-streamings-em-2025
  4. Netflix se mantém como a plataforma com maior participação de mercado no Brasil – Tudocelular – https://www.tudocelular.com/mercado/noticias/n220061/netflix-lider-mercado-streaming-brasil-marco-2024.html
  5. Streaming domina música no Brasil com 87% de faturamento – CNN Brasil – https://www.cnnbrasil.com.br/economia/streaming-domina-musica-no-brasil-com-87-de-faturamento-diz-relatorio/
  6. Streaming alcança 20% de audiência no Brasil – Poder360 – https://www.poder360.com.br/midia/streaming-alcanca-20-de-audiencia-no-brasil-diz-jornal/
  7. Netflix e Prime Video seguem líderes… – 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/
  8. 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/
  9. 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/
  10. Fibra Óptica: A Grande Aliada na Expansão das Plataformas de Streaming no Brasil – Conect Telecom – https://www.conecttelecom.com.br/blog/fibra-optica-a-grande-aliada-na-expansao-das-plataformas-de-streaming-no-brasil
  11. Mercado fonográfico brasileiro ultrapassa R$ 3 bi – Meio & Mensagem – https://www.meioemensagem.com.br/midia/mercado-fonografico-brasileiro-ultrapassa-marca-dos-r-3-bi
  12. Mercado de streamings de vídeo faturou US$ 2,1 bi no 1T 2024 – Tudocelular – https://www.tudocelular.com/mercado/noticias/n222363/mercado-streamings-video-faturamento-primeiro-trimestre-2024.html
  13. Netflix supera 25 milhões de clientes no Brasil – Folha/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
  14. 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/
  15. Os desafios regulatórios do mercado de streaming no Brasil – Lex Legal – https://lexlegal.com.br/os-desafios-regulatorios-do-mercado-de-streaming-no-brasil/
  16. Setor audiovisual exige investimento de 12% das plataformas – Cosmos – https://cosmosonline.com.br/setor-audiovisual-exige-investimento-de-12-das-plataformas-de-streaming-em-producao-nacional/
  17. Roku amplia opções de conteúdo no Brasil com canais FAST – Tudocelular – https://www.tudocelular.com/tv-e-cinema/noticias/n238030/roku-guia-tv-ao-vivo-brasil-canais-fast.html
  18. Netflix aposta no longo prazo para ampliar produção local – Forbes – https://forbes.com.br/forbes-tech/2023/01/netflix-aposta-no-longo-prazo-para-ampliar-producao-local-no-brasil/
  19. Tempos de streaming: Implicações na produção audiovisual no Brasil – AVANCA | CINEMA – http://www.avanca.com/portal/temp/avanca%20cinema%202021/AVCINEMA_2021_012.pdf
  20. Evoluções Tecnológicas de Vídeo no Padrão 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

(Only the sources explicitly cited in the analysis are listed; URLs from vertexaisearch.cloud.google.com have been deliberately omitted.)