\n\tSÃO PAULO: The 2014 edition of ABTA Expo & Conference opened yesterday with a general sense of optimism from government reps and independent producers and expressions of caution by executives from Brazil’s pay-TV sector.<\/p>\n
\n\tOscar Simões, president of the ABTA, said that the forecasts for Brazilian pay TV are upbeat, with subs set to hit 20 million by year-end, up from 18.8 million in May and a 10.8-percent gain on 2013. That double-digit growth, he said, “demonstrates the strength of an industry that the population has effectively adopted.”<\/p>\n
\n\tNews of Telefónica’s $9 billion bid for Vivendi’s Brazilian unit GVT was also discussed during the ABTA opening panel. Brazil’s Minister of Communications, Paulo Bernardo, said regulatory and antitrust issues "will have to be analyzed before the merger occurs.”<\/p>\n
\n\tIn a session on the relationship between producers and channels, Debora Ivanov from Gullane Filmes defended the Brazilian regulatory agency’s rule that gives control of IP rights to production companies. “Ancine gives us protection to be able to [pursue] different business models—other than traditional orders—and renegotiate them in five years. I understand the rule is controversial and that it is not comfortable to many people, but it is an important right.”<\/p>\n
\n\tRoberto Martha, director of production at Discovery, said that “distortion happens when Ancine’s rule makes TV channels transfer rights even when they finance 100 percent of the production.” He believes that Ancine’s rules should get closer to the market. “Instead of investing in more expensive and longer series, we have to invest in different ones to meet quotas.”<\/p>\n
\n\tCarla Albuquerque, the director of independent production company Medialand, added that language is currently the main hindrance to the growth in Brazilian productions. “Colombia produces in English (as well as in Spanish). We should let go of our perfectionism and produce more, until we finally reach a model that works well for us. That famous belief that you need 10,000 hours of work to succeed is true.”<\/p>\n
\n\tGross operating revenue from subscriptions, broadband services and advertising for the pay-TV sector in the first quarter of 2014 was R$7.5 billion (US$3.3 billion), an increase of 15.4 percent over the same period in 2013. Pay-TV companies are, however, struggling to attract ad dollars from the dominant terrestrials. “In mature markets, the sector has at least 10 percent of the advertising pie; in Brazil, the sector was biting a slice of slightly less than 5 percent of the cake by the end of 2013," said Fred Muller, who coordinates ABTA’s advertising committee. <\/p>\n
\n\tThis is one of the reasons that advertising is among the main topics at the conference this year.<\/p>\n
\n\tOrganized by Converge Communications, ABTA 2014 has 123 exhibitors, 81 of them international.<\/p>\n