MBW’s World Leaders is a daily sequence by which we flip the highlight towards a few of the most influential trade figures overseeing key worldwide markets. On this characteristic, we communicate to Nando Luaces, CEO of Madrid-based distributor and Latin Music specialist Altafonte. World Leaders is supported by PPL.

MBW has written time and time once more concerning the world rise of Latin music.

Within the US alone, in 2021, Latin music generated $886.1 million on a retail foundation (cash spent on streaming subscriptions, in addition to bodily and digital music), which was up by 35.4% versus the prior 12 months.

In April final 12 months, MBW predicted that the recorded music marketplace for Latin artists in america would generate over a billion {dollars} in income throughout the 12 months of 2022. We identified in April 2022 that 2021’s annual income determine of $886.1 million would solely need to rise by an extra 12.9% (+$114m) in 2022 to hit 1 billion {dollars}.

We reported once more in November that, based on mid-year knowledge launched by the RIAA, on a retail foundation, Latin Music was very a lot heading in the right direction to hit $1 billion in revenues in america final 12 months, after rising 23% within the first half of 2022, to achieve $510 million. 

Spanish-language music’s prominence on the world stage was additionally highlighted final month by world recorded music physique IFPI, when it reported that, for the primary time, the Prime 20 largest singles globally in 2022 featured 4 songs carried out predominantly in Spanish.

Moreover, Dangerous Bunny’s Un Verano Sin Ti was introduced by IFPI as the largest album, globally, in 2022, after he was named in December because the world’s largest artist on Spotify in 2022 with 9 billion streams, and as Apple Music’s ‘Artist of the 12 months’ in November.

Following a stellar 12 months for Latin Music, Nando Luaces, CEO of Madrid-based music distributor Altafonte, is bullish about its future.

“Essentially the most-listened-to-artist on this planet in 2020, 2021 and 2022 was Dangerous Bunny, a Latin artist who sings in Spanish and has taken the city and reggaeton sound to a different stage,” says Luaces.

“Rosalia is one other nice instance of a worldwide star. That is simply the tip of a really giant inventive iceberg; the artistic drive of our area is unstoppable.”

Luaces is well-placed to touch upon the success of Latin Music. Altafonte is an influence participant within the sector, with a staff of just about 150 folks in 12 nations. Luaces says the corporate is seeing significantly quick development in Brazil, Mexico, Colombia, and the US.

Artists that work with Altafonte held 26 nominations on the Latin Grammys in November, going house with six wins. “We’re extremely proud that as a very unbiased, owner-operated firm, we are able to obtain 26 nominees and win six Latin Grammys,” says Luaces.

“It was one thing extraordinary. We work with large names in Spanish and Portuguese music, true stars of our area, nice artists who’re very established, however we additionally work with a brand new technology of expertise that arrives with energy and power.”

Based by Nando Luaces in 2011, The Madrid-based distributor has over 150 workers throughout 11 workplaces. It represents a few of the Iberian and Latin markets’ largest breakout stars, together with famous person DJ Alok, in addition to legendary acts like Gilberto Gil.

Current signings embrace Peru’s Susana Baca, who began her profession on David Byrne’s Lauka Bop label, and American-Mexican artist Julieta Venegas

Luaces’s personal profession in music began again in 1992 when he based the BOA report label to launch music from native Hip Hop artists.

“We turned an important hip-hop label in Spain and BOA continues to be lively to this present day,” he says. “In the course of the 30 years since, me and my staff have additionally been bodily distributors, music publishers and occasion producers.”

Right here, following the information that Spain’s personal recorded music revenues grew 12.43% YoY to €461.9 million ($485.69m) in 2022,  Luaces gives an perception into the expansion of the Iberian and Latin music markets, what differentiates his firm from different gamers available in the market and why Altafonte “thinks like a tech startup”…

May we begin initially of your profession – What have been you doing previous to launching Altafonte and the way did you first begin working in music?

Way back to I can bear in mind, I used to be surrounded by music, and have all the time been a fan. My mom could be very enthusiastic about music. In our home in a small village in Spain, I grew up listening to classical music and all of the ‘70s hits. We additionally danced quite a bit.

I studied classical guitar and jazz in school, after which in my teenage years, I used to be in a punk rock band. In 1992, I turned excited concerning the emergence of Spanish hip hop, so I created the BOA label to launch music from native artists that I liked.

We turned an important hip-hop label in Spain and BOA continues to be lively to this present day. In the course of the 30 years since, me and my staff have additionally been bodily distributors, music publishers and occasion producers.

We’ve constructed an extended historical past and expertise within the music trade. I’ve been to hundreds of reveals and occasions all around the world, and I nonetheless get excited and have enjoyable with the music. Music has all the time been my life, personally, and professionally. I’ll most likely proceed this fashion for the remainder of my life.

Why did you launch Altafonte again in 2011?

From the response to artists on the BOA label we might see very clearly what was occurring. Audiences for hip-hop have been changing into world via social networks and I felt strongly that DSPs would have the important thing to a brand new, world music enterprise.

We additionally knew agreements with artists would should be way more versatile and pleasant, and that we needed to turn out to be a music and expertise firm to answer the complicated and technological administration of rights.

“Audiences for hip-hop have been changing into world via social networks and I felt strongly that DSPs would have the important thing to a brand new, world music enterprise.”

Lastly, to be credible throughout the Latin world and to serve our artists, we would wish native workplaces, staffed by skilled, credible native executives within the Latin nations the place we began to function.

These profound adjustments within the music consumption setting and the brand new wants of artists have been, and nonetheless are, an important alternative for Altafonte, and I’m very proud that we’ve made the corporate a profitable one, based mostly on these beliefs and values.

How is Altafonte positioned within the world music enterprise in the present day and the way would you like it to be positioned?

By market share, we’re the fourth largest firm, after the three majors, in a few of the nations we function in. We now have a staff of just about 150 devoted professionals in 12 nations, and we’re nonetheless rising quick, significantly in Brazil, Mexico, Colombia, and the US. I really feel that by specializing in our core markets, and by taking a quality-over-quantity strategy, we’ve constructed an organization that is likely one of the main independents on this planet. The Latin market is likely one of the quickest rising, and we’re very nicely positioned right here.

Over time we’ve created a high-quality artist roster, which we’re increasing day by day. We’re additionally a expertise firm with our personal staff of engineers creating our personal back-office interface, a administration and data software that continually improves and automates virtually all guide processes and gives our artists super transparency. We’re very excited by innovation, so we’ve a giant alternative for development with every thing that’s coming in AI, metaverse, social media and many others. Lastly, we particularly worth our long-term relationships with our purchasers: artists and labels.

What differentiates Altafonte from different gamers available in the market?

It’s a very aggressive setting, with the majors preventing a fierce battle for market share, both immediately themselves or through their owned distributors. It appears they’ve lots of strain on numbers, charts, Prime 200 and far much less time for inventive high quality.

We expect extra about high quality than amount. We take a curated strategy. In a sure manner we’re craftspeople. Largely, we need to care for our artists and ship them the perfect options. Working with artists isn’t just about giving them a giant advance and signing a contract. For us an important factor is to be a great accomplice, to keep up a long-term high quality relationship and that each one events work in a win-win mannequin.

“We need to change the mannequin for music distribution, the place we’re socially accountable, the place we deal with being a real accomplice to artists and construct extra human and private relationships, relatively than simply accumulate content material so we are able to say we’re large.”

We’re critical about creating an organization that’s led by a extra trendy, collaborative philosophy. We need to change the mannequin for music distribution, the place we’re socially accountable, the place we deal with being a real accomplice to artists and construct extra human and private relationships, relatively than simply accumulate content material so we are able to say we’re large.

Altafonte additionally thinks like a tech startup: we’re quick decision-makers, we create high quality software program that solves actual issues for the artist group, we are able to scale our world automated administration mannequin very simply, and we are able to attain tens of millions of individuals as a possible viewers.

The Latin music enterprise has seen extraordinary development in recent times. What are your predictions for it in years to return?

For us it’s shocking to see what we’re attaining in nations all over the world and particularly within the US. It’s undoubtedly the results of a brand new technology of artists with an important artistic drive and world-class manufacturing.

Cultural variety, globalization and entry to music in every single place has helped us quite a bit, little question the rising markets of the world will proceed to develop strongly and convey new sounds and musical kinds to the world.

Altafonte is a small firm in comparison with the scale of the unbiased market, so we’re assured that we are able to consolidate our place as one of many largest and most prestigious unbiased music and expertise corporations because the Latin market continues to develop globally.

What are your predictions for the unbiased music sector?

On the one hand, the scenario could be very tough as a result of the market could be very aggressive and there’s a lot of economic strain when signing artists. This probably penalizes the independents. However, the market is rising, there are a lot of alternatives, new artists, and viral phenomena, to handle this it’s a must to make fast and daring choices. That is the place the independents are stronger.

The large problem is to adapt repeatedly to the tendencies and fixed adjustments. There’s a new technology of small labels and artists doing this very efficiently. As well as, variety from all factors of view is one thing all of us need, unbiased labels set up nearer relationships with artists and artist high quality has extra weight in decision-making.

I’d additionally spotlight the good work that’s executed with the associations of unbiased labels in every nation and the way, united, we are able to obtain quite a bit. We’ve to defend the small, the uncommon, the distinctive, the standard, the varied, the pure creativity. That is the mission of the unbiased labels.

What are the largest alternatives and challenges within the Iberoamerica music market?

We’ve a present market of just about 600 million Spanish audio system and 240 million Portuguese audio system, rising steadily yearly. Within the US the Latin inhabitants continues to develop and is estimated to account for 25% of music consumption. We’ve very giant audiences utilizing social networks and DSPs.

As specialists in Latin music of all genres, we’ve invested in being on the bottom in these nations with native groups, to really be part of this tradition by which we have been born. Our aim is to make this nice group of native artists extra world.

There’s nonetheless a giant problem to resolve the issue of low ARPU in our area. We have to see a rise in paid subscribers on streaming platforms, and higher revenues from free companies like YouTube and TikTok.

If Altafonte’s streaming exercise all occurred in North America or the UK, we’d probably have 4 instances the scale of income we do now.

What are a few of the most notable tendencies (both enterprise or artistic) available in the market that you would be able to inform us about?

TikTok has modified the principles with short-form movies, and we’re already seeing lots of creativity in this sort of content material throughout different DSPs.

The enterprise is altering and diversifying with new income streams and extra world assortment fashions. On the similar time, vinyl is right here to remain, which is nice information for music followers.

Though a worldwide recession is looming over our heads I see the music trade with optimism and resilience.

Altafonte just lately acquired licensed B-Corp standing. What was the importance of securing this standing?

We live in instances the place many individuals are misplaced and struggling. Many individuals don’t discover goal in what they do and the way they work. In a manner, we live in an important world disaster of values and sense of life.

We solely need to see the diploma of violence, rigidity and frustration that surrounds us, even in essentially the most developed nations, and for the sake of our futures, that should change.

We consider that organizations are additionally chargeable for driving social change. Folks want the next goal to work for, to share and to present; we have to work in protected and pleasant environments the place human relationships are essential. Working to the values of a B Corp helps us to realize this aim, it helps us to point out others that it’s potential, that it isn’t a romantic utopia. For us, it’s a manner of displaying our staff that we’re critical about their wellbeing, and I consider this shared goal helps us all to really feel that we’re contributing to a tradition and mission that’s deeper and extra purposeful than simply earning money.

If there was one factor you possibly can change concerning the music enterprise, what would it not be and why?

There’s a drawback with streaming that we should remedy urgently. There are nice artists, creating extremely good works, however they aren’t highly regarded with youngsters (huge shoppers of streaming), they usually have lots of issues to easily make a dwelling from their work.

We see this clearly within the low YouTube, Spotify, Apple, or Amazon revenues of many artists, even with artists who promote lots of tickets however don’t generate digital income. The platforms should discover a fairer manner of distribution that helps skilled and high quality artists [receive] a good earnings for his or her work.

I’d additionally spotlight the change the place music corporations appear to need to turn out to be credit score establishments delivering meaningless advances within the type of loans as the one solution to do enterprise. This, for my part, is a good perversion within the music enterprise. This struggle with money as the one weapon is just not useful to most artists, who want assist, partnership, and steering within the medium and long run.

World Leaders is supported by PPL, a number one worldwide neighbouring rights collector, with best-in-class operations that assist performers and recording rightsholders all over the world maximise their royalties. Based in 1934, PPL collects cash from throughout Africa, Asia, Australia, Europe, and North and South America. It has collected over £500 million internationally for its members since 2006.Music Enterprise Worldwide