As niche films rise, box office drops

Brazilian attendance drops 24% in 2008

By MARCELO CAJUEIRO

Despite the sharp rise in the number of features released in Brazil, local pics have declined at the B.O. since 2003 when they commanded a 21.4% share of the marketplace, and in 2004, when total attendance topped 114 million. In 2007, those same figures were 11.6% and 88.6 million, respectively.

The downward trend continues this year. In the first quarter of 2008, attendance of local pics totaled 2.9 million, down 24.1% from the same period last year. The total B.O. of Brazilian pics fell 11.3% to $14.6 million, hurt in part by an increase in ticket prices.

"We are lacking good product," says Carlos Eduardo Rodrigues, exec director of Globo Filmes, the theatrical arm of local media giant Organizacoes Globo. Created in 1998, Globo Filmes has co-produced 67 local pics.

"Our film output has increased threefold," Rodrigues adds, "but we are making mostly art or realistic films for adults. The research shows the public is mostly (composed) of young people (who prefer) entertainment films."

Brazil's overall theatrical market also is not doing so well. Despite the continuous expansion and renovation of the exhibition circuit, total attendance has decreased in the past three years. Total B.O. has slightly increased in the period, thanks in part to the average ticket price rise. But as a result of the real's currency appreciation, the total B.O. in U.S. dollars has significantly increased (see chart).

Further affecting the distribution sector, the DVD boom in Brazil seems to be over. According to tentative figures of sector group UBV, DVD rentals fell 50% in 2007 from the previous year, following a rapid expansion from 2000-2006.