B r a z i l R e p o r t Latin America Focus (Continued on Page 54) V I D E O • A G E OC T O B E R 2 0 0 7 52 to Globo with the task of executing the first phase of restructuring its international operations. Scalamandré explained that the move to São Paulo represented the second phase of a restructuring, and is consistent with the international department’s mandate of becoming a major revenue producer since, until he took it over in 1999, the division “was not viewed as a profit center” internally. Additionally, to the benefit of his division, São Paulo is the headquarters of all of Rede Globo’s advertising sales, including spot sales for TV Globo Internactional, the TV channel directed at Brazil’s expatriates, which also falls under Scalamandré’s responsibility. It was pointed out that 30 percent of TV Globo Internacional’s TV revenues come from advertising; the rest comes from subscriptions (440,000 worldwide, including 6,000 in Europe and 32,000 in Japan). Within Scalamandré’s division, Marcelo Spinola heads Globo’s international TV channel, while content sales for Globo TV International are handled by Raphael Correa (including formats, such as the popular It’s Your Call, now airing in the U.K., Spain and China). International co-productions are handled by Flavio Rocha (who is currently commuting between the Rio and São Paulo offices). It was also explained that Globo’s co-production deals are strictly international, whereas only selected presales can air in the domestic market. For instance, in 2002, Italy’s Mediaset pre-acquired telenovela Terra Esperanza with the understanding that Globo would produce at least 20 episodes in Italy. Recent co-productions include Vale Todo with Telemundo in the U.S. and Os Maias with Portugal’s SIC — both of these shows are available exclusively for the foreign market. According to Scalamandré, coproductions that could be used for the domestic market are what he called “miniseries” (up to 30 episodes) and “microseries” (up to five episodes), whereas telenovelas consist of 180 episodes that are subsequently reduced to 150 for international sales. For export, each episode must be 45-minutes long, but the length of episodes aired in Brazil varies according to the lead-in and follow-up programming, which, especially if they concern football (soccer), could potentially cut the telenovela down to 30 minutes. As to new concepts and stories that can be developed into future series, Scalamandré said: “The range is wide. In the last five years, for example, 4,000 Brazilian soccer players have been hired by teams all around the world, offering new sources of programming opportunities.” But today, Globo’s major challenge is to counteract the loss of value in its TV commercials by including product placement in telenovelas. In this regard, Scalamandré predicted that the positive effects of this development will extend to traditional advertising for exported programs as well: “It wouldn’t be smart for a company — such as an international bank, for instance — not to take advantage of a traditional commercial spot in a program that features a scene which takes place in a branch, to explain all of its services,” he said. Globo’s Int’l Division (Continued from Page 50) Trade Show Success Reflects Mart Potential Brazil is a difficult TV territory to penetrate; yet it is a vast market with many opportunities for international producers and distributors. It requires personal attention, a large investment and a constant presence. Regardless, it’s a risk worth taking. As a territory, Brazil counts 40 million TVHH with 4.2 million Pay-TVHH subscribers and a total of 10 national TV networks. Even though its theatrical market is small –– estimated at U.S.$285 million per year –– the 2002 success of Cidade de Deus, by São Paulo production company o2, has put Brazilian cinema on the international map, especially considering that, since 1993 Brazilian production companies have been able to deduct money invested in films from their income taxes. One way to keep one’s fingers on the pulse of the Brazilian entertainment industry is to actively participate in one or more of the TV trade shows that recently have sprung up throughout the country. One of these is the increasingly popular Forum Brasil. Its eighth annual edition was held at the end of May in its traditional São Paulo venue, unfortunately not as an inexpensive city as Rio de Janeiro. But, on the plus side, with some 19.6 million people, São Paulo is Brazil’s largest city and the second largest in the Americas (after Mexico City) and thus a key TV market. With a 60 percent increase over last year’s numbers, Forum Brasil counted 1,000 attendees. Guests hailed from the U.S., Canada, France, Argentina, the U.K., Switzerland, Portugal, Spain, Russia and Chile and, of course, Brazil. The floor during one of the coffee breaks Venevision’s Cesar Diaz Some of Globo TV International’s staff in their new home, on the seventh floor of the São Paolo building
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