Caribbean Export OUTLOOK 2016 - 2017

TRADE & EXPORT HOT SPOTS

The creative industries sector is big business in Brazil. It employs over 11 million people and according to the Secretariat of the Creative Economy, a policy body under the Ministry of Culture, persons within this sector can earn up to 42% more than the national average.

After a decade of growth averaging 5%, Brazil’s economy is now the 6th largest in the world. The sheer size of its market has earned the country a place among the much talked about BRIC (Brazil, Russia,IndianandChina)emergingeconomiesthat are leading global market expansion. Brazil, along withtheothernations,isanalluringtargetformany Caribbean manufacturing and service firms, but market entry has remained somewhat mysterious. CARICOMdoesnothaveafreetradeagreementin placewithBrazilandwhiletradebetweentheregion and Brazil has increased in the recent past, it has mostly been to the benefit of Brazilian companies. Aswithmost new things, theremay be trepidation on the part of Caribbean musical acts, due to the unfamiliarity of the market, but it should not be an impediment, especially considering the vast opportunities that are available.

according to the Secretariat of the Creative Economy, a policy body under the Ministry of Culture, persons within this sector can earn up to 42% more than the national average. In the first decade of the 21st century, Brazilian music exports averaged 15% growth year- on-year, but saturation within the diaspora markets and the universality provided by the advent of the digital content revolution has greatly slowed this figure in the past five years. According to the International Federation of the Phonographic Industry (IFPI) which tracks music sales worldwide, the Brazilian recorded music industry grew by 2% in 2014 to US$246 million, with 30% of that growth being generated from digital music sales. In keeping with the trend worldwide, piracy has become a major issue in Brazil, which has led to a contraction of major labels such as Sony and Warner in the market. Many independent labels,

such as SomLivre, have been able to compete with the bigger players by utilising a full servicemodel whereby an artist’s content delivery, performance andmerchandising are all handled by one entity. These independents are more flexible than the majors and have been able to adapt to meet the needs of the Brazilian public with regard to content. For more established artists in the Caribbean, negotiating distribution with one of the larger independent labels in Brazil is a potential avenue to access the market. Local demand for content has continued to grow in unique ways in an evolving market. One of the primarymechanisms for content delivery ismobile phones. Household Internet penetration rates are low inBrazil butmobile penetration is high. There is opportunity, therefore, to target Brazil via digital downloads andmobile service providers. In 2015, 28.2% of Brazilians were accessing their content through subscription services. Many artists in the

The creative industries sector is big business in Brazil. It employs over 11 million people and

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