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music, and the percentage is increasing. And over at Spotify, the world's leading
subscriber streaming service, Baila Reggaetn is the platform's third-most-streamed
channel globally behind Today's Top Hits and Rap Caviar. With Pandora and Spotify
posting tremendous numbers with Latinos, it is clear that SiriusXM is heading in exactly
the opposite direction than it should be as concerns its Latin programming.
Billboard: Latin Musics Mushrooming Impact On Popular Culture:
http://www.billboard.com/articles/news/magazine-feature/7341512/latin-music-impact-on-americanpopular-culture
An April 28th, 2016 Miami Herald article further underscores the self-defeating and
puzzling action that SiriusXM has taken in terminating the satellite broadcast of the
majority of its Latin music channels at a time when other digital radio leaders are
moving in the opposite direction. iHeartRadio now reaches 38 million Hispanics, while
Pandora reaches 15 million Hispanics monthly. SoundExchanges CEO Michael Huppe
recently addressed the Billboard Latin Music Conference and noted that Latin music is
one of the music industrys fastest growing segments. At SoundExchange we process
royalties for digital radio services, many of which have reported a 25 percent increase in
Latino listenership.
Miami Herald: Billboard Conference Showcases Strengths, Changes in Latin Music
http://www.miamiherald.com/entertainment/music-news-reviews/article74477127.html
SiriusXM Never Made the Majority of Its Latin Channels Available on Its Basic
Package, Resulting In an Under-Representation of Latino Subscribers Due to a
Lack of Access
SiriusXM has pointed to its own internal subscriber figures to justify the cancellation of
the satellite broadcast of 8 of the 10 Latin music channels. However, this justification
amounts to nothing less than throwing the baby out with the bath water. The real issue
is that SiriusXM never provided access to 80% of its Latin music channels to the
majority subscribers of SiriusXM subscribers. SiriusXM does not make more than two
Latin music channels available in cars receiving the regular satellite platform, and prior
to terminating the satellite broadcast of its eight other Latin music channels, SiriusXM
only made the majority of those additional channels available to a much smaller subset
of subscribers who had a car radio with a special advanced technology chip. For the
majority of SiriusXM subscribers who do not have cars with the advanced technology
chip, they could not hear the most popular Latin genres like Regional Mexican,
Reggaeton, Latin Pop and Latin Rock. It is hard to imagine SiriusXM asking AfricanAmerican customers to have a special chip-enabled car radio to hear black music
genres, and yet SiriusXM expected Latinos to pay extra for a radio with a special chip
set if they wanted to receive the Latin channels (which are now available only online).
This amounted to de facto musical segregation and a model that did not allow the vast
majority of Latino subscribers to hear Latin music on their SiriusXM car radios.
One of the most puzzling programming decisions of SiriusXM was not to make the
Mexican Regional station Aguila available on most SiriusXM car radios even though
U.S. residents of Mexican heritage constitute 70% of the U.S. Latino population and the
genre far outsells other Latin genres like Tropical and Latin Pop. SiriusXM would not be
under-indexing with Latinos if they made a proper effort to feature Latin music in the first
place. In omitting Mexican Regional and other Mexican-leaning genres like Latin Rock
from the basic package, SiriusXM committed a huge programmatic faux pas.
SiriusXMs premium Latin channels (available only in a small percentage of cars with
the advanced technology chip) also were not fully marketed correctly to the target
demographic, further setting up the channels for underperformance. At a time when
nearly 20% of all music streamed on Pandora is Latin music, the top terrestrial radio
stations in key radio markets such as New York and Los Angeles are consistently
Latino, and 17% of the United States population is Latino, the decision by SiriusXM to
allocate just 2% of its satellite-broadcast music channels to Latin music is simply a poor
business decision.
SiriusXM may attempt point to the fact that they recently launched a 24/7 Pitbull-hosted
channel as evidence that they are supporting Latin music. However, the Pitbull
Globalization channel in fact plays very little Latin music. In the week of April 12th,
2016, the new songs added into rotation on Pitbulls Globalization channel were from
Chris Brown, Drake and Jason Derulo. The station caters to a mainstream English
language audience.
SIRIUSXM LATIN PROGRAMMING HAS BEEN HISTORICALLY LESS ENGAGING
IN COMPARISON TO ITS NON-LATIN PROGRAMMING, RESULTING IN FEWER
LATINO SUBSCRIBERS
SiriusXMs Latin music programming has under-performed compared to the
programming of its non-Latin music channels. Little effort was made by SiriusXM to
feature top-name relevant on-air talent on the Latin channels; by comparison, the nonLatin channels are hosted and programmed by some of the most respected and
adventurous names in their respective genres (as is heard on stations like 80s on 8,
The Spectrum, Backspin and Real Jazz among many others).
For SiriusXM to argue that subscribers did not complain when the satellite broadcast of
the premium Latin channels was terminated is an outright lie. In fact, hundreds of
customers (Latino and non-Latino alike) vocally complained on SiriusXMs own
Facebook and Twitter accounts about the Latin channel cancellations. Clearly, SiriusXM
was not even monitoring its own social media. Furthermore, many in the Latino
community had abandoned SiriusXMs premium Latin channels a long time ago due to
the fact that what was being played on-air was not speaking to them, coupled with the
fact that they did not even know the Latin channels existed (since SiriusXM never made
the Latin channels available in most cars with the basic radio set). By the time that
SiriusXM cancelled the satellite broadcast of 8 of the 10 Latin music channels, there
were not enough people to mutter much of a cry at all. SiriusXM should not have to
throw out the baby with the bath water.
There is an abundance of successful Latino programmers and stations across the
country and globe that focus on different Latino genres. All one needs to do is to check
the most recent books for the two major markets of New York and Los Angeles to see
that consistently, within the top stations across both those markets are Latino stations and different formats. One of the challenges that SiriusXM has with having one person
as the Latin music gatekeeper is that although he or she could have assistance, they
are in effect, in charge of Latin Rock, Mexican Regional, Tropical, Latin Pop, Reggaeton
and several other genres. Its a challenge to say that he or she could be well versed
enough to oversee all of these channels - although it does happen successfully at other
outlets such as Spotify, Pandora and Apple Music. All of these outlets have curation
and music selection tattooed on their arms and all of them have growing bases and
loyal listeners - and growing subscriber bases. The #3 most successful playlist on
Spotify worldwide is a Latin Urban list. Build it (correctly) and they will come.
SiriusXM should care about the largest minority in the US - and the fastest growing.
Case in point is this study that just came out by the Pew Research Center The
Nations Latino Population Is Defined by Its Youth:
http://www.pewhispanic.org/2016/04/20/the-nations-latino-population-is-defined-by-itsyouth/
Lastly, SiriusXMs Latin channels under-performing social media numbers speak for
themselves, and demonstrate that (1) most Latino subscribers with SiriusXMs basic
radio set were not aware or made aware that the now-cancelled premium Latin
channels ever existed and (2) those Latinos who did find the channels were turned off
by their poor programming. As a comparison, there are numerous non-SiriusXM
specialty shows (on both AM/FM and online radio) in the same genres with far higher
social media numbers and active listeners. This proves that the quality of SiriusXMs
Latin music programming, combined with the lack of access to these Latin channels for
ordinary SiriusXM subscribers, is the real reason for the Latin channels
underperformance. Rather than terminating the satellite broadcast of Latin channels that
hold broad appeal to a demographic that constitutes 17% of the U.S. population,
SiriusXM should be investing in and doubling down on its Latin programming and
outreach.
SiriusXM Latin Channels Under Performing Twitter Following
Aguila (Mexican Regional) Following 65 Followers 448
Viva (Latin Pop) - Following 1009 Followers 980
Flow Nacin (Reggaeton) - Following 871 Followers 715
La Kueva (Latin Rock) - Following 1302 Followers 1058
Caliente (Tropical) - Following 1908 Followers 2011