1. Unlocking the International Potential of Colombian Indies

2. Global Alliance How to turn creativity into sustainable cultural industries? Access to national and international markets SMEs as fundamental source of growth and job creation Public/private partnerships www.unesco.org/culture/alliance

3. Timeline June 2004: Colombian Ministry of Culture approaches Global Alliance August 2004: draft project submitted January 2005: fact-finding mission October 2005: findings presented in Colombia October 2006: WOMEX

4. Colombia

5. Anteproyecto para el fortalecimiento de empresas independientes de producción y promoción de músicas locales Draft project to strengthen independent companies working in production and promotion of local music

6. Mission and Method Create awareness Open up dialogue Collect information Recommendations Funding Qualitative Round table Face-to-face interviews Questionnaire

7. People Ministry of Culture, Ministry of Commerce, Instituto Distrital de Cultura y Turismo (IDCT), Proexport, Universidad Nacional, Universidad de los Andes, Universidad Javeriana, British Council Colombia, Fundación Corona Corporación Cultural Cabildo, Guana Records, Colectivo la Distritofónica, Grupo Sincopando, Discosoye, Negramenta, Corporación Tornasol, Catapulta MTM, Codiscos, Astar Music Work-in-Progress

8. Facts In 2004 Colombia 4th largest sales-by-volume in Latin America 2004 sales figures less than half the size of 1997 A gold disc is worth 10,000 units IFPI* report 2005: Domestic repertoire accounts for just 22% of the local market 7.8% access to the Internet, 60% by dial-up *International Federation of the Phonographic Industry

9. Findings Music industry structure –Distribution –Live performance –Media Public support –Training –Grants and prizes –Tax Incentives –Information & Research International

10. Priorities & Developments –Training –Information –Steering group to make the project relevant to the real needs of the industry –Trade-fair –Sergio Arboleda Music Industry training –Funding via with the Organisation of Ibero-American States (OEI)

11. Colombian Artists at WOMEX 2006 Petrona Martínez Los Aterciopelados Totó La Momposina Winner of WOMEX Award 2006

12. When we started no Colombian rock was played on the radio, there were no engineers, no lighting people, no video people, no roadies, no trained musicians, no managers….nothing. Now all of the above are here to stay and grow. Andrea Echeverría, Los Aterciopelados

13. Humberto Moreno co-founder and president of MTM record label and distributor based in Bogotá Operating for sixteen years with strong emphasis on traditional Colombian and international music Releases in Colombia include Polo Montañez, Martirio, Totó la Momposina, Petrona Martínez, Antonio Arnedo, Arista, Jorge Velosa y Los Carragueros Artists in development include Etelvina Maldonado, Veteranos del Caribe, Mojarra Eléctrica, Dr Harvey, Tico Arnedo Colombian licencee or distributor for prestigious international labels including Putumayo, Narada, Lusáfrica and Nuevos Medios

14. Colombian Artists in World Market Diverse regional traditions Increasingly influential position in world market Major artists in the mid-40s: –Pacho Galán –Lucho Bermúdez –Carmencita Pernett –Tony Camargo Current success: –Juanes –Shakira –Carlos Vives –Los Aterciopelados Lucho Bermúdez

15. Background to the Colombian Music Industry Importers based in Medellín, Barranquilla, Bogotá Discos Fuentes formed in Cartagena in the mid 1930s Prohibition on imports in the early 1940s sparked small labels and strengthened the local industry: Discos Tropical, Discos Curro, Discos Silver, Sonolux, Zeida, Discos Vergara © Urbanimage

16. Decade of Boom and Crisis 1990s lifted market figures by more than five times between 1991-1996 Accompanied by period of economic growth Multinationals start to open affiliates End of 90s: crash Onset of piracy Closure of small shops, retail chains and distributors 5 companies closed down in last few years including BMG & Warner affiliates 1964-1994

17. New Projects Despite unfavourable situation, a surprising number of new projects have been established in the last year: –Verónica Orozco www.veronica-orozco.com www.veronica-orozco.com –Inés Gaviria www.inesgaviria.com www.inesgaviria.com –Sin Ánimo de Lucro www.myspace.com/sinanimodelucro www.myspace.com/sinanimodelucro –Bonka www.myspace.com/bonkacolombia www.myspace.com/bonkacolombia –Tinto –Naty Botero www.natybotero.com www.natybotero.com –Jerau www.jerau.com www.jerau.com –Fanny Lu www.fannylu.com www.fannylu.com Incredibly all independent or self-produced

18. Manufacturing Two pressing plants: Disonex & CD Systems – able to produce 2 million units a month while demand on legal market is only 500,000 units on average

19. Independent Labels Ability to record in small or home studios Explosion in new self-produced artists Many disappear as quickly as they appear but others around to stay: La 33 / Real Charanga / Bonka / QuicChocTown / Dr Krápula Kema / Pescao Vivo / Inés Gaviria / La Conmoción Dr Krápula

20. New Companies With almost every new artist, a new label is born New companies have been formed: –Gili Music –Origin Entertainment –K Discos (Warner) –All Music –Canzion –LG Music

21. Traditional & New Music Colombia a regional country: –Caribbean Coast, Pacific Coast, Andes, Plains African, indigenous & Hispanic influences Caribbean rhythms with international recognition: –Cumbia, Vallenato, Porro, Paseo… Tropipop tendency in last 10 years Fuse traditional with urban styles: –Carlos Vives, Fonseca, Fanny Lú, Bacilos, Mauricio y Palo de Agua, Sidestepper Sidestepper © Urbanimage

22. Traditional Artists Awoken an interest in traditional artists –Totó La Momposina –Grupo Bahía –Los Gaiteros de San Jacinto –Petrona Martínez –Etelvina Maldonado Sales not sufficient to attract majors so only medium-scale promotion Los Gaiteros de San Jacinto © Alvaro Ernesto Ortiz & Ellen Speiser

23. Distribution Distributor is also the retail owner –receives distributor discount, plus gross profit and other incentives - ends up with 60% of PPD 3/4 clients control more than 85% of the market Puts producers in a weak position Retail market dominated by chains: –La Música, Prodiscos, Tower Records, La Rumbita, Servimúsica, Tango Discos, Forum, Millenium Belief that availability of titles should be limited to popular titles so retailers unwilling to showcase new artists

24. Direct Sales Distributors & traditional retailers do little to promote home-grown artists Independent & self-produced artists must arrange their own sales, before & after performances Generally meet with success Etelvina Maldonado

25. Promotion Very limited media outlets for non-mainstream music: –University and cultural radios –Press Cultural magazines - Semana, Cambio, Soho, Jet-Set, Caras Newspapers - El Tiempo, El Espectador, El Colombiano, El Espacio –TV National - Señal Colombia, Canal Institucional Regional - TeleCaribe, Teleantioquia

26. Live Performances Many venues and occasions for live performances, regional festivities and company events Key way to promote national artists – more than half start out in clubs & bars Reality TV programmes provide opportunities for new artists, even if quality is doubtful

27. Key Venues in Bogotá Aguapanelas Galería Café Libro Punto G El Sitio Quiebra-Canto Salomé Pagana Crabs Teatro R101 Casa de Citas Cabaret Son Theatron Alto Café El Anónimo Downtown Auditoría de la Antigua Calle

28. Major Campaigns Current Colombian market sales only one sixth of figures during golden age of 90s Gold disc: previously 60,000 units Major TV campaigns few and far between – if lucky, sales reach 50,000 units Not enough to recover high publicity costs, without taking into account damaging effects of piracy

29. Piracy Optimistic estimates calculate piracy at 70% of Colombian market Commercially driven music industry encourages illegal activity Socio-economic problem Cannot be solved solely by repressive measures

30. The Way Forward? Technology slow to arrive in Colombia, at least for 80% of population with lowest purchasing power Government needs to introduce effective and dynamic support mechanisms for self-producers, new labels & local industry Potential to develop music as key cultural industry and turn it into one of the countrys main exports