The Brazilian Press Market
Brazil is far the most populous country in South America and covers almost half of the continent – making it the fifth largest country in the world. 80 per cent of Brazilians (total population 186 million in 2004) live in urban areas along the coast and on the central plateau, chiefly São Paulo, Rio de Janeiro and Salvador. São Paulo is the third largest city in the world. 8% of the Brazilian population are officially considered illiterate, but over 30% of the population do not have the capacity to read and write texts. Brazil has a white majority and a very large number of mixed race people. Blacks are a significant minority, while Asians and Amerindians are a sizeable minority. Characterized by large and well-developed agricultural, mining, manufacturing and service sectors, Brazil’s economy outweighs that of all other South American countries and is expanding its presence in world markets. From 2001–2003 real wages fell and Brazil’s economy grew, on average, only 2.2% per year, as the country absorbed a series of domestic and international economic shocks. Highly unequal income distribution remains a pressing problem – Brazil’s income distribution is one of the most concentrated in the world: the lowest 20% of income groups account for 2.2% of income, the highest 20% for 64.1%. The Brazilian currency, the «Real», was devalued in 1999, and now stands at about 2.1 Reals to one US dollar.

Magazines
The magazine reading population of Brazil amounts to a mere 22%. Two areas in particular – the south and south-eastern region – represent 74% of magazine sales. The total circulation of consumer magazinesin Brazil is stable, about 410 million copies per year. Single copy sales represent 58.6% of the market, with the remaining 41.4% sold through subscriptions. Women’s magazines account for 39% of the overall market, followed by financial, business and news titles, which represent 29%. With the exception of children and automotive, all other segments have experienced circulation increases during the last seven years. Three magazine publishers are dominating the market: Editora Abril (also owner of the largest press distributor Dinap), Editora Globo and Editora Três. The largest titles are Veja (Abril, weekly), Época (Globo, weekly), Superinteressante (Abril,, monthly), Claudia (Abril, monthly), IstoÉ (Três, weekly), Nova(Abril, monthly). One of the leading magazines of the 80s, Manchete, comparable to Life Magazine or Paris Matchin style, has disappeared together with its publisher, Editora Bloch. US and European publishers are already doing business in Brazil, mostly through licensing deals. A law introduced last year, allows foreign investors to own up to 30 percent of magazines, newspapers, TV and radio stations.

Newspapers
The circulation of daily newspapers in Brazil was slightly growing in 2004. This was the first positive performance following three consecutive years of declining sales which in turn followed four years of uninterrupted growth. 50% of the population are newspaper readers. Single copy sales account for 39% of the market, home deliveries for 60.9%. It is astonishing that the circulation of the largest newspaper, Folha de Sáo Paulo, a broadsheet, reaches only around 300.000 copies. O Globo, O Estado de Sáo Paulo, Zero Hora, Correio do Povo, O Dia, Diário Gaúcho have a circulation of more than 100.000. Out of the ten largest circulation papers six appear in broadsheet, four in tabloid format. Foreign magazines account for only 2% of the market which is equalto about $12 million.

Distribution
The single copy market is dominated by two national distributors, Dinap, belonging to Editora Abril, holding a market share of slightly under 58%, and Fernando Chinaglia as no. 2 with 35%. Dinap is working with some six own branches and 66 exclusive distributors which together handle 81% of the business. 78 distributors act on an non-exclusive basis. On the retail side traditional channels are losing ground. Newsstands, called «bancas», are declining in numbers and in market share, supermarkets are losing slightly in numbers, but are gaining market share. Other retail channels, such as bakeries, gas stations, drugstores, convenience stores etc. are growing in numbers and in share. The overall retail network counted some 33.000 points of sale, 2.000 more than in 2001, but 1.400 less than in 2003. Distripress has five member companies in Brazil, Dinap S/A and Fernando Chinaglia Distribuidora S/A, Distribuidora Leonardo da Vinci Ltda., Agepress Importação e Exportaçáo Ltda. and T S R (Tele Sales Representaçáo Ltd.). T S R is the Brazilian subsidiary of NewspaperDirect Inc., and offers a choice of more than 300 of the most important newspapers printed or online.

Edited by presstrends GmbH With contribution from Heinz Graf, Aby McMillan and others