Why New Artist Deals Are Evolving Latin Music's Business: 'Everybody Gotta Be Happy'

Latin music has gone global and its revenue has now crossed the $1 billion mark, which means that the Latin music business has evolved.

The New Latin Music Business panel, which took center stage Monday (October 14) at Billboard's Latin Music Week 2024, was moderated by Rancho Humilde CEO and founder Jimmy Humilde and featured panelist Atella (producer and songwriter, head of music, Zumba and ZML Records), Cris Falcão (managing director of artist & label strategy and GM Latin, Virgin Music Group) and Txema Rosique (senior vice president of A&R, Sony Music US Latin).

Humilde began the discussion by acknowledging the globalization of Latin music, adding that labels, indie or not, had to adapt to a new way of doing business with artists now wanting to be more involved in that aspect and looking for different types of deals — from record, distribution or even individual track deals.

“Our challenge is to get young artists to understand what labels have to offer, from A&R, marketing, business development, they can use all those resources, that's the challenge we have as a company now,” Rosique said. Alternatively, Atella added that “some artists arrive with the idea that the label will do everything for them, but the artist has to give 100% — they can't stay home and think the label will do everything for them .”

Falcão explained that at Virgin Music Group, they have focused on deals that are “tailor-made” for each artist. “We are no longer just box trucks, we offer something different for every partner, all kinds of services, depending on trends, product management or marketing.” Humilde said he takes a similar approach. “I sit down with the artist and ask what they're looking for, what offers they feel most comfortable doing. In the near future, the artist will be doing their own deals, so we're really open to taking any deal that comes our way.”

Panelists also spoke about the importance of both the artist and the label or management company being happy with any type of deal they enter into. “Today, the artist is clear that their legacy is their music, their teachers, every time we see more artists who are clear about what they want to give to the company and what they don't, and obviously that depends on the commitment from and the two parts. This is a business where everyone has to be happy with the deal, all parties involved. You can't have an artist with depression.”

Billboard Latin Music Week 2024 coincides with the 2024 Billboard Latin Music Awards airing at 9 p.m. ET on Sunday, October 20, on Telemundo. It will be available simultaneously on Universo, Peacock and the Telemundo app and in Latin America and the Caribbean through Telemundo Internacional.