The purpose of this chapter is to present an up-to-date (as of 2011) account of the funding available to filmmakers in Brazil, with particular consideration being given to the advantages and disadvantages to be gained from making co-productions.

From an economic perspective, the audiovisual industry plays a strategic role in the dissemination of information and therefore in the decision-making process of the world economy, not to mention the capacity of generating products, employment and income. It was estimated that the revenue of the audiovisual industry in Brazil in 1997 was about $5.5 billion, equivalent to approximately 1 per cent of Gross Domestic Product, compared with 1 per cent in Argentina, 0.5 per cent in Mexico, 1.1 per cent in Europe and 2.7 per cent in the USA.

The four main American distributors enjoy the largest slice of the Brazilian market while the remaining market share is occupied by small independent distributors. From time to time, the major players, such as Columbia, Sony, Fox, Warner and UIP, have also invested in the distribution of Brazilian products. In this case, the company also acts as the producer, profiting from fiscal exemption in the remittance of foreign currency used in the co-production of Brazilian films (through Article 3A, resources secured through fiscal renouncement). Examples of this practice include Tropa de elite 2 (Elite Squad 2, 2010), with over 11 million viewers in Brazil, Se eu fosse você 2 (If I Were You 2, 2009) and Dois Filhos de Francisco (Two Sons of Francisco, 2005).