Latin Music Enjoyed Success In 2003

The year 2003 saw a rise in sales of Latin music and the confirmation of Univision Music Group and Universal Music & Video Distribution (UMVD) as the top Latin label and distributor in the country, respectively.

According to figures provided by Nielsen SoundScan, sales of Spanish-language albums from Jan. 5 to Dec. 28, 2003, totaled 26.1 million units, compared with 19.5 million units for the corresponding period in 2002.

Total sales of all albums by Latin artists—including predominantly English-language albums by Shakira and Gloria Estefan—were even higher, amounting to 27.5 million units vs. 23.7 million units in 2002.

The increase reflects a fundamental change in the way Latin music is purchased in the U.S., from small mom-and-pop stores to major retailers that use SoundScan.

But for the first time in many months, SoundScan figures do not disagree with the Recording Industry Assn. of America's shipment figures for Latin music.

According to RIAA numbers, net shipments of Latin music from January to June 2003 declined 4.5% compared with the same period in 2002. This was a minuscule drop compared with the 15% plunge registered by the market as a whole. The year before, midyear net shipments of Latin music fell by a staggering 25%.

Although year-end figures from the RIAA are not yet available, the downward spiral in sales seems to have stopped.

Univision Music Group comfortably took the lead as the biggest-selling Latin music label in the U.S., thanks to the combined market share of Univision Records, Fonovisa Records and Disa. Univision fully owns Fonovisa and owns 50% of Disa.

But even if one were to leave Disa's 8.45% market share out of the equation, Univision would still come out ahead.

Sony, the longtime leader in the genre, fell to second place with an 18.58% market share that includes sales of Latin albums on Epic and Columbia. Sony's market share for 2002 was 21.09%, but sales began to decline in 2003.

In late May, Kevin Lawrie stepped in as president of the newly created Sony Norte. The label has gone through restructuring and is still in the process of revamping its roster.

Aside from Univision, growth was most notably recorded by EMI Latin, which saw its market share rise from 8.82% to 9.73%. Including distributed labels, that number moves up to 9.96%.

Small indie Balboa also rallied, jumping from a 1.69% market share in 2002 to a 3.7% market share in 2003.

Like Fonovisa and Univision, Balboa released several big-selling compilations that helped boost its standing.

In terms of distribution, UMVD remains the leader in market share, with 39.6% of the market. UMVD took over as the No. 1 distributor of Latin music in first-quarter 2002, after its distribution deal with Fonovisa took effect.

The only other growth for a distributor was registered by EMI Music Marketing, which saw its market share rise from 9.4% in 2002 to 10% in 2003.