Brazilian TV producers encourage Canada to strengthen co-production ties

Brazilian television producers say they're anxious to tap into Canada's half century of experience in animation and its international reputation in the sector to expand the number of co-production agreements between the two countries. EU co-production limitations, combined with the launch of a new investment tax credit this fall, could provide additional incentives to partner with Latin America.For the last four years, Canadian and Brazilian animation companies have invested more than $30 million in joint productions. These ventures are helping expand market access and easing the financial burden for producers from both countries, says Eliana Russi, a manager representing an association of Brazilian television producers."Co-production basically helps to split the risk. You share the risk because in animation, when we talk about a production, we are talking about $6 million, so it's a lot of money. The more partners you can put on the table, the better," she told Canadian Communications Reports at the Ottawa International Animation Festival (OIAF), which begins today.For Brazilian animation companies, who are relatively new on the market and with little experience compared to their Canadian counterparts, co-production allows them to tap into Canadian experience and solid reputation around the world. As proof, Russi says there are currently 60 Brazilian animation companies in joint ventures with Canadian counterparts.Brazil is Latin America's biggest entertainment market, and with European countries restricting co-production processes among themselves because of European Union regulations, Canadian companies should not overlook the Latin American giant, says Fernanda Whitaker, trade commissioner at the Consulate-General of Canada in Sao Paolo."So that leaves Canada to look for other partners, That's why Brazil is a good match," says Whitaker, noting that Canada currently has production treaties with 53 countries.Whitaker points out there are several common issues that make co-production ventures easier, despite the language differences between both countries. Like Canada, Brazil is a multi-cultural country, but the medium of communication there is Portuguese. In addition, despite the fact the country's animation industry is relatively new compared to Canada's, it has highly skilled people.Fortunately, animation cuts across language barriers and Canadian productions, especially television-tailored ones for children, have done relatively well in Brazil, says Russi."Animation travels very easily because all you have to do is change the language that the character speaks and he becomes American, British, Brazilian or Japanese."Currently there are six co-production ventures between Brazilian and Canadian companies, while several are under negotiation. In October, one production will be on the market in Canada and Brazil.On their part, Canadian companies have shown interest in the Brazilian market, with an average of about 100 contacting the Canadian Consulate-General in Sao Paolo for information about access."So far we have held three forums to connect companies from both countries and at each, at least 20 Canadian companies were represented," says Whitaker, adding that the next gathering will be held in February in Ottawa.In another development, Brazilian companies are creating an investment fund that Canadian companies can access if they wish to invest in Brazil, says Bruno Lopau Zulian, an operations analyst with Lacan, an asset management firm in Sao Paulo. The fund is specifically for animation productions. Canadian companies wishing to tap into it must employ a Brazilian producer, who would either be based locally or abroad. In return, the Brazilian government will deduct up to 3% of income taxes due.Zulian says the money will be available in October and efforts are being taken to publicize this in Canada.

Brazilian TV producers encourage Canada to strengthen co-production ties

News | 09/17/2008 7:15 pm EDT

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