Joseph Hwang
* The statistics cited in this article are from the "2023 Music Industry White Paper" published by the Korea Creative Content Agency, part of the Ministry of Culture, Sports and Tourism of the Republic of Korea.
1. Digtal Streaming Services
The Mexican music market is also undergoing a rapid transition towards digital streaming services. In 2022, the Mexican music market was estimated to be worth approximately $571 million. It is estimated that there were approximately 20 million users of digital music, a figure that has been driven by an increase in the number of people subscribing to digital music services. It is projected that by 2027, the market will have reached a value of $741 million.
In the Mexican digital music market, streaming subscriptions constituted 73.3% of the digital music market in 2022. In terms of value, the market is considerable, with a valuation of $266 million. The market is dominated by Latin pop and reggae music. Notably, Puerto Rican rapper Bad Bunny occupies four of the top five positions and is the most streamed artist on Spotify globally. This indicates a significant potential for the Latin music market. It is important to note that Latin America is a predominantly Spanish-speaking region, despite the existence of political and geographical borders. This suggests that, despite the physical separation of countries in the region, there is a strong ideological and cultural connection.
The expansion of the Mexican music market is creating a pressing need for more robust copyright protection. The development of the music industry in any country is contingent upon the establishment and reinforcement of a robust legal framework. Without the assurance of copyright protection, the production of music will inevitably be constrained. In Mexico, the Mexican Society of Authors and Composers (SACM) and the Phonogram and Video Producers Association (AMPROFON) have been established to protect the music industry and advocate for the rights of holders of intellectual property rights.
In the context of music streaming services in Mexico, Spotify has the largest market share at 30%, followed by YouTube Music at 19% and Amazon Music at 16%. It would appear that Apple Music does not wield as much influence as might be assumed.
2. K-pop Localization Strategies in Mexico and South America
The K-pop phenomenon has also gained considerable traction in Mexico, with the global popularity of prominent K-pop groups such as BTS and BLACKPINK being a significant contributing factor. A salient feature of the K-pop phenomenon that is particularly pronounced in Latin American music markets is the phenomenon of "localization." The predominant language in Latin America, including Mexico, is Spanish. Consequently, K-pop artists have sought to merge K-pop with Latin music by releasing new songs in Spanish or collaborating with local artists, and the response has been positive.
According to data analytics firm ChartMatrix, Latin America represents a significant consumer base for K-pop. As reported by Spotify, the popularity of K-pop in Mexico City is 34%, which is comparable to the 36% observed in Jakarta, Indonesia, in the Asian region. This is a noteworthy finding.
Another noteworthy aspect of K-pop in Mexico and Latin America is the prevalence of K-pop hybrid groups, such as KARD. Mixed-gender groups are a relatively uncommon phenomenon in the K-pop idol culture, which is predominantly characterized by the prevalence of either girl or boy groups. It is noteworthy that these groups are more popular in South America, including Mexico, than they are in South Korea. KARD made their debut with a remix of "Without You," a collaboration with Brazilian Latin DJ Alok. The song attained the number three position on the local-global music video chart.
The K-pop girl group Momoland, which is popular in Korea, has also released a new song, "Yummy Yummy Love," in collaboration with the Latin artist Natti Natasha. The song has been well-received in South America. The song achieved a considerable degree of popularity. In 2022, the already well-known Psy released "That That," a dance song with a Latin beat featuring BTS's "Sugar." The song gained global attention and reached No. 1 on iTunes in 73 countries and 100 million views on YouTube within a week of its release. It became Psy's fifth song to enter the U.S. Billboard Hot 100 singles chart.
Additionally, the boy group T1419 garnered local attention with the release of "When the Sun Goes On," an original Spanish version of the song. This marked the inaugural release of an official version of a song in the local language.
3. The Significance of Entering the Latin American Market
Spanish is one of the most prominent language cultures globally, alongside English, and boasts a substantial market. In Latin America, particularly in countries such as Mexico, there is a notable affinity for K-pop among Spanish-speaking populations. Given the greater cultural exclusivity observed in the Spanish-speaking world, localization strategies are of particular importance, regardless of the popularity of K-pop among the target audience.
The globalization of K-pop appears to have reached a point where a favorable local reception was initially established, followed by the implementation of market strategies aimed at consolidating K-pop's presence in the local market. The most common approach is to form collaborative partnerships with local artists. Nevertheless, as time progresses, the necessity for more assertive localization strategies emerges, particularly in a music industry that has become increasingly desensitized and in need of novel stimulation. It is now incumbent upon K-pop to determine which aspects of its cultural form should be retained and which might be modified or even abandoned. The global marketplace is vast, and there are numerous potential markets for K-pop to penetrate.
The transition in music consumption patterns towards digital streaming services is advantageous for the K-pop industry. The linguistic barrier presented by lyrics can be readily overcome through the use of online resources and mobile devices. The digitization of music consumption in distant markets offers a valuable opportunity to reduce distribution costs and cultivate a global fan base. The concept of geographical boundaries is becoming increasingly irrelevant in cultural consumption. The essential element is strategic planning. Collaborating with local markets will facilitate the creation of new musical works and the expansion of market reach. To achieve meaningful progress, cultures must interact and blend. Should the K-pop industry persist in this approach, it would constitute a significant stride forward.
* References and quotations:
https://welcon.kocca.kr/ko/info/trend/1953646
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