September 13, 2017
Colombia is now the premier destination for digital music aggregators in the region.
Bogota celebrates the sixth edition of the Bogota Music Market (BOmm) with the arrival of big names in the country’s digital distribution network. These major players come amid a positive outlook which, according to the digital music report of the International Federation of the Phonographic Industry, points to a total income of USD 15.7 billion in 2016, 60.4% of this corresponding to streaming.
The launching of operations in Colombia by companies such as GoDigital and ONErpm adds to the positive performance of digital music consumption in Latin America which, for the seventh year running, was the fastest growing region in revenues, with an increase of 12%, the highest since 1997. Digital revenue increased by 31.2%, driven by streaming with sales of USD 246 million in 2016.
In this area Colombia recorded sales of USD 35.1 million, which signifies a growth of 13.8%, second behind Mexico, with an increase of 23.6% and which has been one of the traditional regional leaders of the sector together with Brazil, which suffered a decline of 2.8% from the previous year.
The digital growth of the country, seen in its consumption of streaming, has played a key role in market development and the arrival of companies that also find in its geographical location a perfect space to attend the other regions of the continent. According to streaming platforms such as Deezer, the music industry in Colombia has grown 16% year-on-year and 50% of its revenue comes from the digital world.
In the case of Bogota, this positive trend can be observed throughout the creative industries sector. 78% of the greenfield investment in this sector has been made in the city, with about USD 464 million invested between 2005 and 2015, surpassing cities such as Sao Paulo, Buenos Aires and Miami, according to data from fDi Markets.
"Bogota has developed solid strategies of professionalization and specialization of creative industries in the city, offering high-level academic programs that have contributed more than half of the music career graduates who today participate in the sector as producers, engineers, musicians and industry entrepreneurs," says Juan Gabriel Pérez, CEO of Invest in Bogota.
Exercises and initiatives such as BOmm and local music markets seek to consolidate models and processes that can take advantage of digital platforms’ strong growth over recent years as part of the IT sector.
"Our goal, as allies of the entrepreneurs, is that the various players in the music industry such as creators, artists, producers, managers, editors and labels become stronger, find new ways to monetize their businesses and achieve effective contacts in this market," explains Mónica de Greiff, President of the Bogota Chamber of Commerce.
Aggregators are just one of the elements of the world’s music production chain, but with the advancement of music streaming services, their role is increasingly important and critical for the recovery and development of the international music industry. As participants in the BOmm, companies like ONErpm and GoDigital have had the chance to experience firsthand the appeal of the Colombian market, leading to their decision to settle in the country and thus support the growth of a quality offering of local musical and its respective global impact.
"GoDigital sees Bogota as an ideal place for digital content creation and our intention is to integrate ourselves as a local actor to provide and promote the development of the creative industries. We want to participate and develop the enormous potential of the city. That is why events like BOmm and BAM are so important – they’re proof that the city is on the right track," says Paola Colmenares, GoDigital’s director for Latin America.
"Colombia is going through a very good moment in its positioning within the Latin American music industry and still has a good way to go. On the one hand, the artists have to have a better understanding of the new music business and on the other, of the consumers who are still accessing music illegally or through unsuitable platforms," adds Diego Maldonado, Manager for Colombia of OneRPM.
About Invest in Bogota: Based on its international positioning strategy, Invest in Bogota is the public-private agency that actively promotes foreign investment in the city for generating business, advancement, social and economic development opportunities for the people of Bogota and Colombia. During its 11 years of operations, it has been listed by various institutions such as the World Bank (2009) and Site Selection magazine (2015, 2016, 2017) as the best agency at promoting investment in Latin America and the Caribbean. Invest in Bogota is the result of a joint initiative of the Bogota Chamber of Commerce and the Mayor’s Office.