Bullish On Latin Music

When it comes to the Latin market, there are numbers, and then there are numbers.

Take the case of Latin music. Last year, shipments slid to 38.6 million from 41.1 million in 2002, a decline of 6%, according to the Recording Industry Assn. of America.

Sadly, the numbers have been declining for four straight years. The only saving grace is the shortfall no longer hits double digits. Shipments in 2002, you might recall, declined 15.6% from 48.7 million the year before.

Looking at those numbers, it is hard to be optimistic.

But now check these numbers.

The nation's 40 million Latinos represent about 14% of the population—making them the largest minority group in the United States. Their aggregate disposable income is nearly $700 billion per year.

What's more, Latinos are also the fastest-growing segment of the population. Their numbers rose 60% from 1990 to 2000, according to the U.S. Census Bureau. And they grew by almost 10% again during the past two years.

Compare this to the general population, which grew by a mere 2.5%, and you understand why advertisers in droves are suddenly discovering this market.

By 2050, Latinos are expected to comprise 25% of the U.S. population. This burgeoning market will become a powerhouse.

Ad revenue for the top 58 Latin magazines in the United States grew to more than $145 million last year, according to Folio magazine and the Hispanic Magazine Monitor, which track the industry.

That is an increase of more than 23% over the previous year.

We're happy to report that Billboard's Latin coverage and our signature four-day conference and Latin Music Awards TV show have put us right in the sweet spot of this growing market for more than 15 years. That spells commitment.

This year a record number of sponsors signed up for the Latin event, and despite the dour sales figures, the conference demonstrated that there was every reason to be optimistic.

The mood, typical of other Billboard events this year, was decidely upbeat compared with 2003. New stars emerged, such as Juanes and Akwid, while established acts like Ricky Martin and Gloria Estefan demonstrated their staying power.

Piracy, of course, continues to be a major problem, especially in Latin American countries. So far, the main threat is physical piracy, although digital piracy is a growing concern.

The good news is that the RIAA dedicated $2.5 million last spring to fight piracy mainly in the United States and Puerto Rico. Two million illegal pieces of Latin product were seized in 2003, a 40% increase over seizures in 2002. And those numbers are likely to continue rising.

Like any numbers game, there's always a bottom line, and here it is: We're bullish on the Latin market.