00:00 Less than two weeks ago, as everybody's aware,
00:02 Bad Bunny teased his new song through his WhatsApp channel
00:05 before releasing it towards the end of August.
00:07 So I'm Rob Jonas.
00:08 I'm with Luminate.
00:09 We're going to go through a lot of numbers.
00:11 But let's dive in.
00:13 So many of you are aware that we publish pretty detailed reports
00:17 twice a year, our mid-year report and our annual report.
00:20 We've been tracking the rise of Latin music
00:22 for a very long time now.
00:25 Many, many big trends we've seen in recent quarters.
00:29 And I'm just going to pull up some notes here.
00:30 One sec.
00:31 So in our mid-year report, we were talking about, obviously,
00:40 the continued growth of Latin this year.
00:43 It's definitely primed for continued growth
00:46 in the mainstream, as well as the very specific Latin market.
00:50 Actually, we've seen in the mid-year report
00:52 an increase of US listeners who are listening to Spanish music,
00:57 even though they don't speak Spanish, myself included.
00:59 We've also been looking very closely
01:01 at a lot of the superfan data.
01:02 Superfan is a very big topic right now within the industry.
01:05 And we're going to talk a little bit later on today
01:07 about superfans, specifically in the Latin music genre.
01:11 And superfans are really focused on a few things.
01:13 One, obviously, is music, merchandise, and, of course,
01:16 live experiences as well.
01:17 And then the other thing we look at very closely
01:19 is we look at how Latin relates to the K-pop genre,
01:22 so another international genre that's
01:25 seen really, really strong growth in recent quarters.
01:28 And we'll look at some of the parallels
01:30 and the differences between the two different genres.
01:32 So up on the slides now, you can see just a quick snapshot
01:35 of 2023 through the end of August.
01:39 What you can see, of course, is the Latin genre
01:42 has generated close to 60 billion on-demand audio
01:45 streams.
01:46 And if you're not familiar with on-demand audio,
01:48 we'll talk about it a lot in the presentation.
01:50 This is basically consumers and users
01:52 who are choosing to listen to this music.
01:54 It's not being programmed to them.
01:55 It's not being played on a radio.
01:57 They're going into a streaming service and saying,
01:59 I want to listen to this music.
02:01 This has actually made it the third fastest growing
02:04 genre in the US based on year-on-year growth.
02:07 And it's the fourth genre based on pure volume alone.
02:10 And these are numbers through the end of August.
02:12 And if you look at the numbers on screen,
02:13 you can also see the Latin music genre is growing at just
02:16 under twice the rate that music consumption is growing at
02:20 overall, which is really, really phenomenal growth.
02:22 [AUDIO OUT]
02:27 You see on here, Latin is the fifth largest genre
02:29 based in the US based on on-demand audio
02:32 and has 7% market share of audio streaming during 2023.
02:36 Again, growing very, very quickly in the last two years
02:38 specifically.
02:40 One thing we do as well is we go out and we ask consumers.
02:42 We don't just look at the streaming numbers.
02:44 We don't just look at exactly what's
02:46 being listened to and where.
02:46 We also go out and speak to consumers and users
02:48 and listeners of this incredible music
02:51 to understand what's going on.
02:53 And our Illuminate Insights consumer research,
02:56 we've actually found that 40% of US music listeners
03:02 report consuming music in a non-English language.
03:05 This is a huge, huge number and something
03:07 we've seen growing very, very quickly.
03:09 And Spanish is actually the second most
03:10 listened to language by US listeners behind English,
03:14 with around 26% reporting they're
03:16 listening to this music.
03:20 When we look at language analysis of consumption trends
03:23 in the US, we can see how this plays out.
03:25 We looked at the top 10,000 US on-demand audio tracks.
03:29 And we can see a trend over the last few years
03:31 where English language consumption has dropped just
03:34 over 4%, so actually decreased over time.
03:37 And Spanish language music or Latin music
03:39 has mostly filled that gap, because it's picked up
03:41 about 3.5% to now account for just under 8%
03:46 of total streaming.
03:47 Another way to think about this is actually
03:49 one in 13 track streams in the US
03:52 is a song in Spanish when looking
03:53 at the top 10,000 songs.
03:57 Remember as well, though, on the consumer research
03:59 we showed on the previous slide, 26% of US music listeners
04:03 listen to songs in Spanish.
04:05 And this gap shows there's a lot more volume to be created.
04:07 So there's a lot more growth to come.
04:09 Thirdly, we're going to take a quick look at communication
04:15 and discovery.
04:15 So communication is really, really important.
04:17 How this music's being discovered
04:18 is a very, very important topic at the moment.
04:21 And through the course of this presentation,
04:23 we'll see several times how the growth in Latin music,
04:26 specifically in the US, has got a really, really strong root
04:29 in community and culture.
04:30 And this has come out from our research.
04:32 Understanding the tools people use to connect with each other
04:37 is a critical piece to understanding markets
04:39 and consumers.
04:40 Less than two weeks ago, as everybody's aware,
04:42 Bad Bunny teased his new song through his WhatsApp channel
04:45 before releasing it towards the end of August.
04:48 Bad Bunny has over 13 million followers
04:50 on his WhatsApp channel.
04:52 It's the first tease of this song.
04:54 And looking at Latin music fans using WhatsApp,
04:57 this partnership makes a lot of sense.
05:00 It could be a sign of many great future marketing initiatives
05:03 around WhatsApp and Latin artists.
05:05 When looking at communication preferences,
05:07 WhatsApp stands out as a key for both Hispanic and non-Hispanic
05:11 Latin music fans.
05:13 For Hispanic Latin listeners, 73%
05:16 use WhatsApp, which is 265% more than the average US consumer.
05:21 Just huge propensity to use these platforms
05:24 around connection and discovery.
05:26 And likewise, non-Hispanic Latin users
05:28 are 55% more likely to use WhatsApp.
05:31 WhatsApp, of course, is a global communication tool.
05:34 This level of use illustrates the importance
05:36 of connecting with friends and family,
05:38 almost regardless of geographical divisions
05:40 and borders.
05:40 And this is a really new development.
05:42 We haven't seen this happen before.
05:44 So we're going to watch this one very, very closely.
05:46 Streaming platforms, of course, are incredibly important
05:51 for discovery as well.
05:52 It's the number one music discovery source
05:54 for Latin music listeners in the US.
05:57 Friends and relatives places at number two,
05:59 with just under one in two Latin music listeners reporting
06:01 they learn more about new music from those closest to them.
06:04 Again, a very unique trend specific to this genre.
06:08 Additionally and interestingly, we've
06:09 also found that movie and TV soundtracks
06:11 provide a path for reaching non-Hispanic listeners,
06:14 as nearly one in two non-Hispanic Latin music fans
06:16 discover music this way.
06:19 Discovery for this genre is very, very different
06:21 to what we see in other categories.
06:22 So let's talk about superfans.
06:26 Superfans is a very big topic right now.
06:28 Everybody's talking about superfans.
06:29 What are they?
06:30 How important they are?
06:31 How important they are to the future of artists?
06:33 How important they are to the future of the whole industry?
06:36 And throughout this section, we're
06:37 going to take a look at Latin music superfans in the US,
06:40 what differentiates them from other music superfans,
06:42 and where the opportunities are to create additional value.
06:45 And as a reminder, this is completely new research
06:47 we're bringing today.
06:48 You'll be available to download this at the end,
06:50 because I appreciate there's lots of numbers in here.
06:52 And I'm also talking pretty quickly for Monday morning.
06:54 So let's take a look at spending profiles for these superfans.
07:01 US Latin superfans spend 120% more per month
07:05 than the average music listener, and then even spend
07:08 30% more than other US music superfans.
07:12 Very, very passionate fans.
07:13 And the bulk of that monthly spend for this fan
07:16 goes towards live events.
07:18 Reports over half their monthly music spend on shows.
07:22 Physical music and merchandise obviously make up a combined 23%
07:26 of monthly spend, indicating these superfans are looking
07:29 to connect with artists in additional ways
07:32 beyond just streaming their music.
07:34 Again, a trend we see across every genre,
07:36 but the intensity we're seeing in the Latin space
07:38 right now is really, really high.
07:40 And in regards to physical music purchases,
07:43 this is an opportunity to super serve these fans,
07:46 as US Latin music superfans are 17% more likely to purchase
07:49 physical music than other US superfans in other categories.
07:52 So where is this monthly spend on live events going?
08:01 Our research shows that Latin music superfans over-index
08:04 for live music concerts and music festivals,
08:07 compared to other US superfans.
08:10 Additionally, they're almost 20% more likely to attend
08:13 free community events than other superfans,
08:16 illustrating the importance of community we touched on earlier.
08:19 And over 2/3 of these fans plan on going to a live concert
08:22 in the next 12 months.
08:23 I just want to talk about other places
08:32 where we can optimize Latin superfan value.
08:36 First of all, let's talk about merchandise.
08:37 Again, a very important topic right now for the industry,
08:40 where our spending profile shows to account
08:41 for 11% of monthly spend.
08:44 And when looking at Latin superfans
08:46 compared to other US superfans, not only
08:48 they're more likely to have purchased merchandise
08:51 in the past year, but Latin fans are even 24% more
08:54 likely to say they wish artists provided more merchandise
08:57 options so I can show my support for them and their work.
09:01 Again, a lot of these fans want to do more than just stream
09:04 the content.
09:05 There's also several other areas where artists
09:07 and their representatives can maximize superfan value.
09:10 We've already discussed how Latin music fans are connected
09:12 to community and culture, but these also
09:14 show up in the likelihood to purchase music gift cards.
09:16 Again, a very unique trend we see for these fan bases.
09:19 These fans spend more on live streaming events
09:21 and physical music, both of which
09:23 offer additional areas to super serve this audience.
09:27 And furthermore, live streaming engagement
09:29 comes with no geographical boundaries,
09:31 closing that gap on that 26% mark.
09:33 A gap on that 26% consumption we talked about earlier.
09:36 Changing gear for our fifth trend,
09:42 we'll talk about the rise of regional Mexican music.
09:44 So as a data company, we saw this trend
09:46 coming for a long time.
09:47 And obviously, it hit pretty hard in recent months
09:50 in a good way.
09:52 The rise of regional Mexican listening in the US
09:55 has been one of the biggest stories we've seen this year so
09:57 far.
09:58 As of today, Peso Pluma had nearly 1.3 billion primary
10:01 artist US on-demand audio streams.
10:06 And these streaming numbers place him and other artists
10:08 in the US in the top 100 by on-demand audio streams
10:12 at number 43 for Peso, which is a really amazing, amazing
10:15 achievement.
10:18 The Latin regional Mexican genre itself
10:20 has grown 56% this year alone to more than 14 billion
10:25 US on-demand streams, which is a huge, huge number.
10:28 And taking a look on the chart on the left,
10:30 you'll see this growth has also been
10:32 additive to the overall Latin genre,
10:35 as all sub-genres are gaining through this growth.
10:37 We discussed earlier a little bit about community and culture
10:45 as a foundational element of Latin music fans.
10:47 And that's evident here as well when
10:49 we start to look at where regional Mexican fans are
10:52 in the US.
10:54 The listenership sees higher concentrations
10:56 in the West Coast and through the Southwest
10:58 in states like Texas.
11:00 This aligns with US census trends
11:02 illustrating Hispanic population patterns in the US.
11:04 So no major surprises, but the data
11:06 is definitely bearing out what we all expect.
11:08 And while number one music discovery method
11:10 of regional Mexican listeners is video or streaming services,
11:15 Gen Z regional Mexican fans are more likely to discover
11:17 through short-form video.
11:18 So a lot of content.
11:26 Very quick, as I mentioned, there's
11:27 a way to get access to this presentation
11:29 once I've finished.
11:30 But just a few takeaways to leave you
11:31 before you enjoy the rest of the day and the rest of the week.
11:35 Number one, we look at this genre.
11:37 One of the biggest surprises from our research
11:38 is just the incredible role of culture.
11:40 Hispanic community and culture play a massive role
11:43 in the genre's growth, revealing new areas of music discovery
11:45 going forward and more opportunities
11:47 for amazing artists to emerge and to develop
11:50 as compelling contributors to this genre.
11:53 Secondly, superfans.
11:54 Everybody's talking about superfans right now.
11:56 It's one of the biggest topics of 2023.
11:58 And there's considerable opportunities to further
12:00 monetize fandom as Latin music superfans demonstrate
12:04 levels of passion even higher than other US music
12:07 superfans and key activities.
12:10 And lastly, of course, Latin genre growth.
12:12 Growth of regional Mexican is additive to US Latin genre
12:14 growth.
12:15 More new fans coming to the genre.
12:17 They're really enhancing the incredible repertoire
12:19 of artists and talent which are contributing today.
12:22 Thanks for your time.
12:23 [APPLAUSE]
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