Globo launched Muu (muu.globo.com) a month or two ago, which is basically a Brazilian clone of Hulu, and will probably be Netflix's main competitor. Yes, it's pronounced like the sound a cow makes.

Globo runs the main broadcast TV channel and the main cable TV channels as well, so they've presumably got the rights to Brazilian TV content pretty much locked up. They also own the main cable channels which show movies as well (the Telecine channels).

It will be interesting to see how the Muu vs. Netflix competition pans out.

Terra launched one earlier this year too (http://videostore.terra.com.br/Web/VideoClube) 1/3 more expensive, not-so-good selection for the subscription service, also has "rentals")

There's also http://www.netmovies.com.br/ , which follows the original disc-by-mail model, but has a very crappy online selection.