Puerto Rico finds a reggaeton industry of its own

Reggaeton is an artistic manifestation coming from the poorest neighborhoods of Latin America, and starring young people who conceive music as a means of distraction, celebration and socialization, not as that intellectual experience made fashionable by the snobbish rock of the 1970s. In this sense, it is understandable that the sophisticated 'academy' -so usually focused on what happens in the avant-garde- finds it even offensive to recognize the creative force that also resides in the "rearguard", in those poor and illiterate kids who have overthrown the notion of Anglo-Saxon pop as an unbeatable titan.

Although the genre originated in Panama, it is safe to say that the phenomenon was popularized by Puerto Rican artists such as Daddy Yankee, Wisin & Yandel and Don Omar, and has reached the current level of globalization with Puerto Rican debuts such as Bad Bunny and Rauw Alejandro. With its scant 13,800 km2, Puerto Rico has never been a major power on the international scene. A turbulent political history, an exorbitant public debt - in the process of recovery - and an alarming poverty rate are not exactly the right ingredients to place a country in a position of international relevance and impact. And yet, Puerto Rico is currently a giant in the music industry. It ended 2023 with a ranking in which 3 of the 10 most played songs globally were by Puerto Rican artists; in the case of Spain the number rose to 7 out of 10. The popularity of the genre is undeniable, but it is also important to highlight its economic and commercial impact.

According to the International Federation of the Phonographic Industry's (IFPI) Global Musicreport , total recorded music trade revenues in 2023 were US$28.6 billion, a 10% increase over the previous year. Latin America, meanwhile, had a growth of 19.4%, which followed the 31.2% in 2022, which was the highest rate worldwide for the eighth consecutive year. To mention the most relevant case, the tour of Puerto Rican artist Bad Bunny was the highest grossing worldwide in 2022, with revenues of nearly US$373.5 million and close to two million tickets sold.

These figures, in the case of Puerto Rico, are especially relevant from the perspective of exports. For more than a decade, the main products exported by Puerto Rico have come from the pharmaceutical industry, which represents more than 50% of all its exports. However, and despite being a sector with great relevance for the island's economy, on most occasions we do not speak of exports in the strict sense, since the product goes to the United States, of which Puerto Rico is an associated state. In this sense, when we talk about Puerto Rican music exports, we are referring to a real export -from Puerto Rico to the international scene without the American giant as an intermediary-, with reggaeton as the most listened genre in 8 countries around the world according to data of Spotify.

However, what is most relevant is that the economic impact of the music industry is not limited to reproductions, much less to the artists. Puerto Rico is the base of operations for a growing number of recording companies programs of study , independent record labels and concert halls that are supported by a considerable number of music schools, educational initiatives and government incentives that keep the industry evolving on the island.

Between November 2021 and October 2022, the Coliseo de Puerto Rico José Miguel Agrelot alone grossed more than $40 million, according to Billboard Boxscore. And according to ASM Global's regional General Manager , Jorge Perez, who oversees the iconic venue, the island's live entertainment industry created 30,000 jobs and generated $2 billion annually over the past two years. Another example was the Tu Música Urbano Awards, which were held on June 15 in San Juan, Puerto Rico, and had a direct impact on the country's economy with some US$8.5 million generated and a massive promotional campaign for the island as a destination for the entertainment industry. The event generated a thousand direct and indirect jobs and some 1,500 nights of hotel stays, among artists and music industry professionals.

Jobs generated in the music industry in Puerto Rico have grown steadily over the last decade. This growth, which is expected to continue in the coming years, is due to several factors, including the aforementioned boom in digital music, which has created new opportunities for artists and producers; the rise in popularity of Latin music, which has made Puerto Rico a particularly attractive destination for international artists; and the growth in demand for live music, which has driven the development tourism sector.