Global research finds Brazil is outpacing Russia, China, and India in its growth rate for pay-TV subscriptions and its household discretionary spending for movies, music, and games is nearly double that of China.

During 2011, pay-TV service subscriptions in Brazil increased by over 30%, and broadband service subscriptions grew by 20%. By comparison, service growth in Russia and China is at or below 20%.

Continued economic improvement in the country has increased demand for CE, and over one-fourth of Brazilian broadband households pay for an online video streaming service. Netflix recently entered this market, and LG Electronics plans to roll out its Google TV in Brazil in the near future. However, there is already intense competition from incumbents' VOD offerings. Operators, including Oi (Brasil Telecom), Net (Net Servicos de Comunicaçao), Telefónica Brazil, and GVT, have increased their investments in infrastructure, expanding the availability and scope of services available to consumers.

Brazil does have problems associated with a growing nation, including regulation, poverty, and piracy. A 100% tax on imported consumer technology products inhibits legitimate retail sales and fosters an active “grey market” for CE.