Latin Music shipments grow by 21 percent in First Half of 2004

WASHINGTON (RIAA) - The Latin music market experienced a 21.5 percent unit gain, and 18.2 percent growth in value, in the first half of 2004, according to new shipment data announced today by the Recording Industry Association of America (RIAA).

CDs shipped to retail jumped 20 percent year-over-year - 21.2 million units in the first six months of 2004 compared to 17.7 million in the first six months of 2003. That translates into a 15.9 percent growth in dollar value. DVD music videos continued to be increasingly popular. The format experienced a 249.5 percent gain in units shipped to retail and a 222.5 percent increase in dollar value.

RIAA officials attributed the increase in part to a compelling release schedule of albums as well as new initiatives aimed at strengthening Latin music anti-piracy programs. Latin music is particularly hard hit by physical goods or 'street' piracy – the manufacture and distribution of counterfeit and pirate CD-Rs.

Like the marketplace for all genres, the recent gains in Latin music shipments do not completely erase a multi-year decline. Compared to three years ago, shipments of CDs to retail are down 2 percent and all Latin music product shipments are down 14.6 percent.
'The growth in Latin music so far this year is impressive and encouraging,' said Rafael Fernandez, V.P. of Latin for the RIAA. 'The Latin street piracy problem is still severe, but our investment in new anti-piracy initiatives and our expanded work with law enforcement agencies is beginning to pay off.'

The figures in this report reflect net shipments of full-length CDs, cassettes, music videos and DVDs into the marketplace and the dollar value of those shipments (at suggested list price) as reported by BMG U.S. Latin, EMI Music U.S. Latin, Univision Music Group, Sony Discos, Universal Music Latino and Warner Music Latina.
The RIAA's coverage of the U.S. Latin music market is estimated to be approximately between 80 and 90 percent. No projection of the non-reporting segment of the market is made. Latin music is defined as product that is 51 percent or more in Spanish language. The accounting firm of PricewaterhouseCoopers LLP compiled this report.