Reviving Brazilian Music’s Diversity in the Streaming Age

I was fortunate to grow up in a musically rich environment. While I don’t come from a family of musicians, my father’s deep love for music and art left a lasting impression. He avidly listened to music and made sure to immerse us in it from an early age. I studied music, dance, and theater, and it seemed fate had music in store for me. Though relatives would often warn me with the old saying that “music has no future,” my parents never discouraged me. I pursued a career that began with a passion for musical performance as a flutist and evolved into one as an entrepreneur, always striving to stay ahead in an increasingly complex industry.

Roberto Menescal, a key figure in Brazil's Bossa Nova movement and a dear friend, often shares how he, too, faced skepticism from his family of architects and engineers when he decided to follow his passion for music. Time has certainly proved the wisdom of his decision.

Like Menescal, I’ve witnessed countless changes in the music industry, but nothing compares to the disruption brought by the digital revolution. Brazil remains one of the top 10 most profitable music markets globally, consistently breaking records. In 2023, we saw a 13.4% growth—surpassing the global average of 10.2%—and a staggering 136% increase in vinyl consumption. These numbers are impressive!

Yet, beyond the allure of the numbers and the looming concerns around generative AI and its potential impact on creative jobs, I am particularly concerned with the current music distribution model itself.

Throughout my 30-year career as a musician and businesswoman, I’ve seen this transformation unfold. Trained in an array of genres—from medieval, baroque, and classical music to Brazilian folk rhythms, choro, MPB, and international pop—I find myself increasingly dissatisfied with a model that’s eroding the richness of Brazilian music.

The market operates on incentives. If the distribution model is driven purely by mass consumption, what incentive is there for entrepreneurs to invest in genres that don’t align with this logic? It’s no secret that the genres seeing the most growth in Brazil are sertanejo and urban music. We’re witnessing an explosion of new labels and distributors catering exclusively to these genres. A massive infrastructure of studios, producers, composers, musicians, and promoters has emerged, all focused on one thing: maximizing streaming revenue.

But there’s more to Brazilian music than what’s being fed through this machine. Regional music, rock, classical, forró, axé, and traditional MPB all have a rich history and a devoted audience. It’s time for Brazilian entrepreneurs who care about these genres to realize there are technological tools and strategies that can make investing in niche markets worthwhile.

There are plenty of examples from the past that demonstrate the potential of niche music markets. In Brazil, labels like Kuarup, Biscoito Fino, Núcleo Contemporâneo, and Delira Música have all successfully championed regional and instrumental music. Internationally, we’ve seen the success of Blue Note, Motown, and Alligator Records, among others.

Working within a niche can be highly profitable, and here’s how to approach it:

Knowledge

Know the niche you want to work with. If you’re already passionate about it, even better—you’ll be familiar with its key players, consumer profile, media, and the channels that serve this audience. Discover new talent early and help them grow. Position yourself as a specialist, and you’ll stand out. Also, invest in understanding the music business. There are many courses and conferences available today to sharpen your skills, such as the Berklee Online Music Business Courses or the Trends Brasil Conference.

Structure

Use technology to structure your business efficiently. You’ll need tools that offer streamlined management, reducing costs while increasing agility, automation, and transparency. When I started, working with music outside the umbrella of a multinational corporation was nearly impossible. Today, the independent market accounts for more than half of global music consumption.

Now is the time for music lovers to reinvest in Brazil’s musical diversity, celebrating the full range of our country’s rhythmic and cultural richness. The creative community will thank you!

I recently engaged with Revelator to power KickOff Music, my web2/web3 distribution label focused on niche genres. Revelator is the perfect technologycal partner to help indie labels and new entrepreneurs build up their music business.

Learn how Revelator can help you on this journey.

Luciana Pegorer is an Account Executive at Revelator, co-founder of KickOff Music, and founder and curator of Trends Brasil Conference. She has held positions at Warner Music Brazil, served as President of the Brazilian Independent Music Association, and was a board member of Merlin and WIN. Luciana is also a member of the Women in Music association and was Deputy Secretary of Municipal Culture of Teresópolis.