Mainstream American Companies Are Trying to Jump on the Latin Train. Can They Succeed? 

Latin music, long seen as a trend that ebbed and flowed through the years, is finally being seen as a true market player — with mainstream American labels, TV shows and even management companies increasingly courting (and signing) Latin acts.

But to truly succeed in the Latin market, those mainstream players must proceed with caution and cultural intelligence. That was the sentiment among industry leaders at a recent “State of the Latin Industry” panel during the Latin Alternative Music Conference in New York July 12.

“Obviously it’s a natural consequence of what’s happening with Latin music globally and it was to be expected,” said Roberto Andrade, managing director for Warner Music Latina. “[But] it’s positive as long as you work in partnership. In our case, we signed [Argentina rising star] María Becerra to Warner Latina, but we’re associated with [American label] 300 Entertainment, so they can also bring opportunities to the table. As Gus said, ‘Work in what you know.’”

He was referring to Gustavo López, CEO of Saban Music Latin, who earlier in the panel had been particularly passionate when talking about the industry’s current gold rush regarding regional Mexican music — a market López worked with extensively during his days as president of Mexican labels Fonovisa and Disa, between 2008 and 2011.

“It saddens me when people talk about a Mexican music ‘boom,’ when it’s been 60% of the Latin music market for the past 40 years,” he said. “Make no mistake: Companies like Del, Rancho Humilde, have taken advantage of the opportunity major companies left to the side, and they’ve done it very well, and they’ve done it with the right teams. I ask labels to not get into genres they don’t know without the right teams, because they’ll f–k it up.”

The same principle, he said, applies to mainstream American labels rushing into Latin. But, he adds, “It’s also the artist’s responsibility to decide who he goes with. That’s where it all starts. If you’re simply going with X executive because he did a thousand things in another market, and now he’s going to do it in the Latin market, be very careful. If they don’t have the right team to execute, it’s going to be tough. It’s not just about money. The biggest danger for an artist is to take money from a place that doesn’t add knowledge.”

In the past year, many record labels and management companies, big and small, have made moves into the Latin market. Among the most noteworthy: J Balvin recently signed a management deal with Roc Nation after three years with SB Projects. In turn, Ozuna signed a management deal with SB Projects. Karol G signed to Interscope, and last year, regional Mexican sibling trio Yahritza y su Esencia unleashed a bidding frenzy before signing with Columbia Records.

Historically, however, there are few, if any, long-term success stories of core Latin acts either managed or signed to mainstream companies. Instead, the big wins have come from artists who partner with labels from both sides of the aisle.

“Partnerships are the smart way to go,” says Alex Gallardo, president of leading Latin label Sony Music U.S. Latin, which has the longest history of partnering with its mainstream counterparts with acts like Shakira and currently, Rosalía, whose EP RR with fiancé Rauw Alejandro (another Sony Latin act) is a joint release between Columbia and Sony Music US Latin. From the other end, DJ Marshmello has been releasing a string of successful singles featuring Latin artists under Sony Latin, including the global hit “El Merengue” with Manuel Turizo.

“I feel many Anglo labels sign stuff without understanding the language, the culture or the media,” said Gallardo, making the parallel with partnerships between Latin majors and indies. “I help you go further because I bring you my knowledge. But what knowledge can I bring you if I don’t understand your world or what you’re doing?”

From an observer’s point, it is impossible not to recognize the opportunism displayed by many who for decades, paid scant attention to Latin music. But Latin music can’t be ignored anymore, not at a global scale; this week, 47 tracks on Billboard’s Global 200 chart are in Spanish, and typically, 30% of Spotify and YouTube’s weekly global charts are Latin. It can’t be ignored in the U.S. either, where, according to Luminate’s midyear music report, Latin music registered a 21.9% percentage growth year over year, more than any other genre except for World Music (which encompasses non-U.S. genres like K-Pop and Afrobeats). Latin also managed to grow its overall share of the market significantly over the same period last year, from 6.25% to 6.72.

Gallardo says he’s conflicted by what these numbers represent to those who have long been outside the Latin market: “Are you signing this artist simply because you want your little piece of market share, because the numbers are good, or because you are really the best partner possible to take a career to the next level? The latter should always be the true reason.”

Which is not to say that mainstream companies cannot do a good job with Latin music. Witness The Orchard, which has been entrenched in the Latin market for decades and has distributed Bad Bunny from the beginning of his career.

“We’ve been working in Latin music from the onset,” said Colleen Theis, COO of The Orchard, noting that the distributor has had its Latin team in place for over 20 years. “For The Orchard, we put music out, and we pull people in rather than deciding what people are interested in. That really underlies that for us Latin music IS general market music, and we work in the general market. I’d rather empower the label base that we have to be the general market, than give those key artists to an American label who is Anglo.”