Can musicians and radio stations
do business?

I wrote this article 13 years ago, in 2013, about the Peruvian music market. Although time has passed, I believe its ideas still apply today. The figures, references and proposals below reflect the context and my perspective at the time.

A few days ago, we began writing a response to statements by Dr. Ferrero, secretary of the SNRTV, about the radio law. Then El Comercio published an interview with Mr. Zavala, manager of CRP. We challenged several of the arguments they strongly defend—arguments that, judging by posts from friends and colleagues in the Peruvian music industry, many others also reject, each offering their own very valid perspective.

However, we welcome and appreciate the observations by both Dr. Ferrero and Mr. Zavala suggesting that a bridge of dialogue be opened between musicians and the broadcasters. We would suggest a conversation between the Peruvian music industry—which includes not only musicians but also managers and producers, among others—and the SNRTV.

We should not see radio as an enemy of the industry, but rather as an ally. In a basic economics lesson, radio should see the artist—international and national alike—as its supplier of raw material, and they should work in harmony so both the radio and music industries can progress. The main argument defended by radio stations is the listener’s right to choose what to hear without state imposition, and they support it with market research, which I do not doubt is genuine. The hard reality is that Peru is not a rock-loving country and young people’s preferences lean toward cumbia, ballads and reggaeton, which is why stations playing those genres have the largest audiences. I have not seen these studies, but I would like to know whether they represent the general public or only people who listen to radio. It is well known that radio has been losing listeners to the internet and perhaps—although I cannot prove it—because of dissatisfaction with current radio programming.

We also suggest that stations try to reach the audience that no longer listens to radio. On May 25, a festival called Vivo x el Rock will take place at the Plaza Norte shopping center. Seventeen artists are playing, of whom only Libido, Amén, Río, Mar de Copas and Dolores Delirio have received radio airplay. Eight thousand tickets have already been sold and 10,000 people are expected (correction: according to the organizers themselves, more than 15,000 attended). I am sure the great majority, if not all, do not listen to radio and do not appear in the stations’ survey data. That is 10,000 potential new listeners. It is inconceivable that stations would not see them as a business opportunity. It is a matter of being more imaginative and creative. In his interview, Mr. Zavala says he could not organize an autograph signing at a shopping center with Rihanna, but could do so with Grupo 5. An autograph signing with several artists from this festival was held over the weekend and, according to the organizers, more than 1,000 people attended.

We fully agree that radio is a business, and as a business the rules should be clear for everyone. We would propose—although many of our colleagues may disagree—that radio stations be candid about payola. This is a music industry, and every business requires investment. If you decide to become a musician, you must understand that, in the absence of record labels, you need investors to cover the recording and production budget for your album, a company to handle your press, a management team, and investment in promotion: filming a video and obtaining radio airplay. All of that has a cost. In Colombia and Mexico, radio stations have rate cards that tell you clearly how much you need to invest to be played on station “x” for a specified time. If a Peruvian artist is not commercially viable for radio stations, then offer airplay in exchange for payment. Dr. Ferrero also used cumbia as an example, saying that cumbia artists rent radio slots. Then tell us what it costs to rent one daily hour between 6 a.m. and 8 p.m. on a pop-rock station such as Planeta, Studio, Oasis, Oxígeno, Viva or Doble Nueve. I am sure that, if the rules were clear, many producers and managers in the industry would be interested in investing in those slots.

We fully understand that a mass-market rock station is not viable at the moment because it could not sustain itself commercially. However, we do believe a rock station could work over the medium term—five years or more—with a new generation that learns to listen to and appreciate both Peruvian and international rock. Rock shares the rebellious spirit of young people, who are also more willing to listen to and discover new, avant-garde songs and sounds, which are more closely associated with rock than with any other style of music. But we cannot demand that private companies risk their money to test our assertions.

The state, however, in its cultural role, could undertake a multimillion-dollar project of this kind, because maintaining a mass-market station that aims to compete commercially is extremely expensive. Colombia has two national radio stations: one with a format very similar to our Radio Nacional, and another aimed specifically at young people that broadcasts rock. Yes, rock. It is called Radiónica, and we invite you to see and listen to its programming.

Another alternative we propose is for musicians and the SNRTV to form a common front to seek state support for policies that encourage the development of the Peruvian music industry without imposing quotas. Countries such as Sweden and South Korea have artists who are important sources of income and international representation. We all know that K-pop is a new musical wave coming to conquer the world, and that this has been thanks to government support. Sweden likewise has educational policies that support its music industry. Through free education, it encourages all citizens to play at least one instrument and provides opportunities for young people who want a music career through free music theory classes, free use of rehearsal spaces, help with buying instruments and so on. The return comes when these artists become successful, since they pay higher taxes than the average citizen. A closer example is Colombia, which is sponsoring Fonseca’s North American tour under the Colombia brand and promoting a campaign called “Colombia es la respuesta.”

State support policies could also, for example, include tax reductions tied to the percentage of domestic artists played in a given program, up to a certain limit. The music industry and radio stations need to sit down and discuss what could benefit everyone. This would not mean that anyone who records an album would get onto the radio: the stations would still set their own filters. But it would encourage artists to release higher-quality productions and create healthy competition for radio exposure. This would strengthen and grow the Peruvian music industry.

Afterword

We knew very well that payola would be the most controversial topic. I have received a range of opinions from colleagues, but the important thing is to put the subject on the table and talk about it. It is time to leave hypocrisy and double standards behind for the good of the industry.