Snapshot of the Brazilian Creative Economy Digital Contents Association of Japan - DCAJ WHITE PAPER 2014 This is a working version for an overview article about the Creative Industry in Brazil in the latest years 2012-2013. This version was later revised, translated, edited in japanese and published in the "Digital Content White Paper 2014" from DCAJ - Digital Content Association of Japan, a research agency related to METI - Ministry of Economy, Trade and Industry of Japan. DCAJ annually publishes the "Digital Content White Paper " which collates the market size of the Japanese content industry, government policies, latest trends in major content categories and media, and the latest trends outside Japan. Authors: Aramaki, Celso Singo; Egashira, Junnichi

1. Snapshot
of the
Brazilian
Creative
Economy
May
2014
This isa workingversionforanoverview article aboutthe
Creative IndustryinBrazil inthe latestyears 2012-2013. This
versionwaslaterrevised,translated,editedinjapaneseand
publishedinthe "DigitalContentWhite Paper2014" fromDCAJ -
Digital ContentAssociationof Japan,aresearchagencyrelatedto
METI - Ministryof Economy,Trade and Industryof Japan.DCAJ
annuallypublishesthe "Digital ContentWhite Paper"which
collatesthe marketsize of the Japanese contentindustry,
governmentpolicies,latesttrendsinmajorcontentcategories
and media,andthe latesttrendsoutside Japan.
Digital
Contents
Association
Japan - DCAJ
WHITE PAPER

2. Snapshot of the Brazilian Creative Economy
Article (Working Version, May 2014)
This is a working version for an overview article about the Creative Industry in Brazil in the latest
years. This version was later revised, translated, edited in japanese and published in the "Digital
Content White Paper 2014" from DCAJ - Digital Content Association of Japan, a research
agency related to METI - Ministry of Economy, Trade and Industry of Japan. DCAJ annually
publishes the "Digital Content White Paper " which collates the market size of the Japanese
content industry, government policies, latest trends in major content categories and media, and
the latest trends outside Japan. Every issue since 1991 has feature pages analyzing current
events and trends surrounding the contents industry. The DCAJ web site is located at
http://www.dcaj.or.jp/english. Some data will differ from the published version in Japanese due
to updated sources. Values in American US$ or Brazilian R$ in this working article were
converted to Japanese Yenes in the print version using the June 2014 foreign currency
exchange value in Japan. The source sites were accessed in the period from February to May
2014 and from June to July for double checking.
Celso Singo Aramaki
celso@qneuron.jp Director at QNeuron http://qneuron.jp (US/Japan).
celso.aramaki@usp.br Public Policy at USP – São Paulo University / Universidade de São
Paulo - EACH Escola de Artes, Ciências e Humanidades - GPP Gestão
de Políticas Públicas (Brazil).
Junichiro Egashira
j.egashira@js-js.jp Executive Producer and owner at J’S Japan K.K. (Japan). Former
Producer and Executive Producer at Dentsu Advertising K.K. (Japan).
Alumni at Keio University, Psychology School Graduate (Japan).
J’S Japan website is located at http://js-js.jp.

3. Overview
Brazil is currently the sixth largest economy in the world. Unemployment has
has averaged 5.6%, (down from 13.5%) for a population of 200 million people.
The impact of the so called Creative Economy or “Cultural Industries”
accelerated at a faster pace in this past decade, not only in Brazil but in the
Latin American countries as well.
(Table 1)
Brazil 2013
Brazil Population* 201.032.714
Counties 5.570
Households 62.800.000
GDP US$ 2.48 trillions
Per Capita Income US$ 12.032
Creative Economy GDP Impact** in 1998 6.7%
Creative Economy GDP Impact** in 2006 11.1%
Sources:
* IBGE - Instituto Brasileiro de Geografia Estatística
http://oca.ancine.gov.br/media/SAM/DadosMercado/Dados_gerais_do_mercado_brasileiro_2013.pdf
http://ibge.gov.br/home/
**WIPRO – World Intelectual Property Organization
http://bit.ly/Americas2013CIDatabase
http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=38370643

4. Jobs Creation
A report by the Organization of American States (OAS) and the Inter-American
Development Bank (IDB) show the important contribution to growth, jobs, and
trade in the (hemisphere) generated by creative and cultural activities such as
the arts, design, music, and advertising, amongst others.
(Table 2)
Creative Economy to GDP, selected european countries and USA 2011
Country Creative GDP (R$ Bilhões) Percentage of GDP (%)
USA 1.011 3,3
Great Britain 286 5,8
France 191 3,4
Germany 181 2,5
Brazil* 110 2,7
Italy 102 2,3
Spain 70 2,3
Netherlands 46 2,7
Norway 32 3,2
Belgium 27 2,6
Sweden 26 2,4
Denmark 21 3,1
Austria 15 1,8
Greece 6 1
Source: *FIRJAN; UNCTAD (2011) World Bank Data
http://www.firjan.org.br/economiacriativa/download/Analise_completa.pdf

5. (Some) $640 billion was the value of the world’s exports of creative goods and
services in 2011, of which $87 billion or 14 percent originated in the Americas,
according to data compiled by Oxford Economics*.
(*Source: http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=38370643).
The contribution by creative industries to GDP varies widely across the region:
from just under 2 percent in Chile to more than 10 percent in Brazil where it is
also an important provider of employment* .
*Source: http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=38370643
(Table 3)
Number of employees of the core creative knowledge in Brazil by segment 2011
Architecture & Engineering 230.258
Advertising 116.425
Design 103.191
Software, Computer & Telecom 97.241
Publishing 49.661
Fashion 44.062
Research & development 37.251
Arts 32.930
Television & Radio 26.004
Biotechnology 23.273
Film & Video 20.693
Music 11.878
Performing Arts 9.853
Cultural Expressions 6.813

6. Total 809.533
Source: Firjan
http://www.firjan.org.br/economiacriativa/download/Analise_completa.pdf
(Graph for Table 3)
Growth rates in the Creative sector are consistently higher than the
average of the economy. Access to technology has been a massive
driver for the Brazilian consumer, with internet connectivity almost
doubling over the last five years. This has had a knock on effect on social
Architecture &
Engineering
28%
Advertising
14%
Design
13%
Softw are, Computer &
Telecom
12%
Publishing
6%
Fashion
5%
Research &
development
5%
Arts
4%
Television & Radio
3%
Biotechnology
3%
Film & Video
3%
Music
2%
Performing Arts
1% Cultural Expressions
1%
Number of employeesof the core creative
knowledge in Brazilby segment2011

7. media use – Brazil is now the second largest market after the US for
Facebook use, with some 40.3 million people actively engaged with
social media on a regular basis.*
*Source: http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=38370643
Overview of some creative sectors in the Brazilian economy
Advertising
(Table 4)
Advertising Spend by Medium, (USD Millions, 2013 Prices)
2009 2010 2011 2012 2013
Newspaper Advertising Spend 1.568 1.843 2.025 1.865 1.837
Magazine Advertising Spend 856 1.118 1.225 1.110 1.101
Television Advertising Spend 7.198 9.953 11.555 11.186 11.329
Radio Advertising Spend 494 622 680 635 627
Cinema Advertising Spend 41 52 52 49 51
Outdoor Advertising Spend 330 435 516 494 511

8. Internet Advertising Spend 475 1.382 2.009 2.304 2.729
Total Advertising Spend 10.962 15.406 18.063 17.644 18.185
Source: WARC
http://bit.ly/Americas2013CIDatabase
http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=38370643
Screens: Movies, TV and Smartphones
While Brazilians are now becoming much more widely educated and fully
connected consumers, much of the advertising landscape is still very TV
advertising focused as it still guarantees near universal penetration of
campaigns in the country.
The National Movie Industry is coordinated by Ancine, an agency within the
Culture Ministry (Ministério da Cultura) who has the mandate to discuss and
deliver on the Brazilian Audiovisual Public Policy. It is at Ancine that the new
Brazilian Film Industry has been championed as a vital component for the
formation of the Brazilian culture and the education for the national identity.
Because of the growth of the economy in the last decade, Pay TV is now
massive in the country with 20 million subscribers with prediction to 40 millions
in a few years, and 15.4 million smartphones were purchased in 2012 – an
increase of 73% in ownership.

9. (Table 5)
Movies and TV 2013
Movie Box Office Public Total 149.513.322
Public for Brazilian Movies 27.787.086
Gross Office Box R$ 1.753.169.103,00
Brazilian Movies R$ 297.057.451,00
Foreign Movies R$ 1.456.111.651,00
Movie Theaters / Total Screens 2678
DCI - Digital 1353
3D 854
Cinema Complexes 721
Population per Movie Screen 75.068
Average Price R$ 12,00
Brazilian Movie Share 18,59%
DVD Releases 885
Brazilian DVD titles 72
Blu-ray 441
Brazilian Blue-ray titles 17
Households with TV 61 millions
Pay TV Channels 188
Pay TV Subscribers 20 millions
Mobile Phones 271 millions

10. Source:
ANCINE - Agencia Nacional do Cinema, 2014
http://oca.ancine.gov.br/media/SAM/DadosMercado/Dados_gerais_do_mercado_brasileiro_2013.pdf
(Table 6)
Films by Country - 2013
Country Titles % Public % Gross Sale(R$) %
USA 200 34,84% 116.491.729 77,91% 1.394.125.202,25 79,52%
Brazil 167 29,09% 27.787.085 18,59% 297.057.451,32 16,94%
France 81 14,11% 1.201.997 0,80% 14.342.082,39 0,82%
Argentine 14 2,44% 500.469 0,33% 5.823.012,79 0,33%
Great Britain 13 2,26% 403.391 0,27% 5.211.002,99 0,30%
Germany 13 2,26% 245.245 0,16% 2.972.168,44 0,17%
Italy 13 2,26% 86.077 0,06% 1.067.415,99 0,06%
Spain 12 2,09% 1.686.885 1,13% 19.873.971,30 1,13%
Canada 6 1,05% 113.702 0,08% 1.406.244,88 0,08%
Denmark 4 0,70% 221.618 0,15% 2.752.917,73 0,16%
South Korea 4 0,70% 36.358 0,02% 425.322,57 0,02%
China 4 0,70% 8.572 0,01% 90.694,61 0,01%
Japan 3 0,52% 384.880 0,26% 3.641.140,24 0,21%
Russia 3 0,52% 144.159 0,10% 2.070.331,50 0,12%
Chile 3 0,52% 67.452 0,05% 767.423,28 0,04%
Israel 3 0,52% 22.075 0,01% 253.628,66 0,01%
Hungary 3 0,52% 20.692 0,01% 224.571,53 0,01%

11. Mexico 3 0,52% 10.248 0,01% 114.085,70 0,01%
Iran 3 0,52% 521 0,00% 1.783,50 0,00%
England 2 0,35% 26.949 0,02% 348.456,40 0,02%
Norway 2 0,35% 15.338 0,01% 179.195,78 0,01%
Cuba 2 0,35% 3.223 0,00% 40.484,66 0,00%
Uruguai 2 0,35% 2.439 0,00% 23.884,90 0,00%
Portugal 2 0,35% 361 0,00% 2.552,00 0,00%
USA/France 1 0,17% ND ND ND ND
Saudi Arabia 1 0,17% 14.931 0,01% 180.310,76 0,01%
Romenia 1 0,17% 13.320 0,01% 148.751,00 0,01%
Turkey 1 0,17% 2.746 0,00% 13.961,00 0,00%
USA/Canada 1 0,17% 371 0,00% 7.261,91 0,00%
Peru 1 0,17% 158 0,00% 1.488,00 0,00%
Spain/France/Ge
rmany/Thailand
1 0,17% 90 0,00% 464,00 0,00%
Finland 1 0,17% 71 0,00% 627,00 0,00%
Poland 1 0,17% 61 0,00% 490,00 0,00%
Greece 1 0,17% 51 0,00% 310,00 0,00%
Belgium 1 0,17% 46 0,00% 348,00 0,00%
Venezuela 1 0,17% 12 0,00% 66,00 0,00%
Total 574 100,00% 149.513.322 100,00% 1.753.169.103,08 100,00%
Source: SADIS (ANCINE) - Data on 31/01/2014, movies screened in 2013.
http://oca.ancine.gov.br/filmes_bilheterias.htm

12. Video Games
The Video Game Industry in Brazil has grown also, and the big three, Microsoft
X-Box, Sony’s Play Station and Nintendo have all launched commercial
operations in Brazil. The contents of the games come mainly from the USA.
Since 2013 the demographics have been changing and a large share of the
market is moving to casual games on the smartphones or Facebook, bypassing
the console wars.
(Table 7)
Video Game Usage 2011
% of total population playing video games 32,3
% of Young Children (Population Aged Up to 6) playing video games 23,6
% of Young Boys (Aged Up to 6) playing video games 24,1
% of Young Girls (Aged Up to 6) playing video games 23,1
% of Pre-Teens (Population Aged 7-12) playing video games 53,4
% of Pre-Teen Boys (Aged 7-12) playing video games 54,7
% of Pre-Teen Girls (Aged 7-12) playing video games 52,1
% of Teenagers (Population Aged 13-19) playing video games 54,0
% of Teenage Boys (Aged 13-19) playing video games 67,4
% of Teenage Girls (Aged 13-19) playing video games 40,2
% of Adults (Population Aged Over 20) playing video games 26,5
Source: Euromonitor
http://bit.ly/Americas2013CIDatabase

13. Music
In the Music Industry in Brazil, like in the rest of the world, there is a downward
trend for the physical CD sales. The performance and download market is still
growing, but the market is not as vibrant as it was just a couple of years ago.
(Table 8)
Music sales 2005 2006 2007 2008 2009
Recorded Music Sales - Physical (US$ million) 318,8 235,4 162 163,9 164,6
Recorded Music Sales - Digital (US$ million) 2 5,5 14,8 26,8 26,6
Recorded Music Sales - Performance Rights
(US$ million) 8,5 10 10,6 12 12,5
Recorded Music Sales - Total (US$ million) 329,4 250,9 187,4 202,7 203,7
Recorded Music Sales (Volume) Physical - CD
(millions) 42,3 33 26,6 25,4 22,8
Recorded Music Sales (Volume) Physical - Music
Video (millions) 6,5 6 5,7 5,8 6
Source: IFPI
http://bit.ly/Americas2013CIDatabase
Print
The magazine and newspaper industry are in a downward trend as well. But the
industry is doing well, although its size is very small compared to mature
markets like Europe, USA or Japan.

14. (Table 9)
Book market 2012
Book market size* (print & digital) US$ million 2.576
Titles published* per year (new and successive editions) 58192
New titles** per 1 million inhabitants 107
E-book titles available** 11.000
New editions and re-editions*** per 1 million inhabitants 285
Sources:
* PublishNew s
** The global E-Book market Rüdiger Wischenbart
*** International Publishers Association
http://bit.ly/Americas2013CIDatabase
The Ministry of Culture (Ministério da Cultura*) has many projects regarding the
infrastructure to improve the delivery of the Contents Industry, as well as the
support for the Production and Financing of the Creative Economy. The Public
Policy Projects and Programs are not yet defined to the last mile, but many of
them are helping to put step by step the culture of Brazil in the overseas
markets.
As the Brazilian economy improves and also the new middle classes from Latin
America grows, there is a huge market on the horizon. The Brazilian Ministry of
Culture has middle term goals to expand the Creative Economy in Brazil to
2022 (Meta 22) and also beyond, for longer term goals. Some of the ideas and

15. projects are on the drawing board and many are in the so called discussion, test
and implementation phases.
*Source: http://www.cultura.gov.br/secretarias1
Japanese Contents in Brazil
The Brazilian population, because of the Japanese immigration, are very used
to the Japanese culture and they like it very much. From the Brazilian
government and businessman point of view, after the digital format of the
broadcasting in Brazil was decided to be the japanese (from NHK and Sony)
that content holders and creators in Japan are not very much interested in the
Brazilian and latin markets.
A few japanese companies and creators are famous in Brasil and the “Anime”
culture still persists as niche market in Brazil. A few events have 30 or 50
thousand young adults in the weekends and many of them are followers of the
contemporary Japanese pop culture. The tablet, smart phone and smart TV
channels could be a breakthrough for many Japanese creative companies.
Japanese contents for the Asian market could be easily localized to the Latin
Market. As the Brazilian and Latin American middle classes grow at a faster
pace, and as the end consumer gets more and more globalized and
sophisticated, the licensing business will be the payoff for the business and
contents holders who properly plan and sell the Experience Economy products
and services to Brazil and Latin America.