"We conducted this study because our Latin labels wanted a meticulous profile of Hispanic consumers of music -- the core group contributing to the exploding popularity of this genre," said Hilary Rosen. "The study delivered empirical evidence that young Hispanics have a voracious appetite for a variety of genres. This, coupled with the fact that Hispanics will be the largest U.S. minority in five years -- with more than 16 million under age 24 -- presents labels and retailers with an incredible opportunity for continued growth."

The key findings of the study reveal a healthy marketplace with large blocks of both older and younger consumers reporting a high degree of purchasing, involvement and satisfaction with music. Not suprisingly, Hispanic consumers are also purchasers of English language music and this is particularly true of younger consumers. Paralleling the general music market, approximately one third of Hispanic customers are responsible for two thirds of music purchases by Hispanics.

Profile of the Prolific Purchaser As part of the survey analysis, the RIAA broke out six consumer segments or clusters based on purchasing behavior. Below are profiles of the two groups to emerge as the heaviest music purchasers, accounting for 27% of the sample, and 68% of music sales.

"Young Hipsters"

• Heaviest segment of music purchasers

• Between 14 and 29 years old, with nearly 80% under age 24

• Mean average of CD purchases per year is 43, with 46% purchasing more than 50 CDs per year

• Favorite genre is Latin (specifically Pop in Spanish and Tropical), Rap/Hip-hop and Pop tie for second choice with R&B coming in third

• Big CD collections (some cassettes), averaging 164

• Interest in music is very high, especially new music such as Rap/Hip-hop

• Buy more music than 5 years ago, reflecting an attitude that music is better now, and newer artists are more appealing

• 60% male vs. female

• 53% are living with their parents, 42% speak Spanish at home all the time

• Ethnic background is predominantly Mexican and Caribbean (Puerto Rican, Cuban, Dominican descent )

"Still Grooving"

• Second heaviest segment of music purchasers

• Between 30 and 54 years old

• Mean average of CD purchases per year is 39, with 34% purchasing more than 50 CDs per year Favorite genre is Latin (specifically Ballads and Tropical), Dance is second choice followed by Classic Rock Biggest CD/cassette collections (even mix of formats) averaging 189

• Biggest CD/cassette collections (equal mix in formats) averaging 189

• Buy more music than five years ago, and spend the most time listening to music

• 63% between 30 and 39 and married with kids

• 53% female vs. males

• 60% speak Spanish at home all of the time

• Ethnic background is predominantly Mexican and Caribbean (Puerto Rican, Cuban, Dominican descent)

Hispanics Are Enthusiastic Music Consumers Music listening is extremely or very important to half of Hispanic consumers. Another 41% consider music listening fairly important, with only 9% reporting music to be not very or not at all important to them.

Outlets Vary Somewhat by Market While the outlets where Hispanic consumers purchase music vary somewhat by region and are spread over many types, a higher percentage of Hispanic customers (24%) buy all or most of their music at independent stores ("mom and pop" shops) than compared to the general market. Independent stores are most favored in the New York area. The second most popular outlets are mall stores (19%) favored by Hispanics in the Miami area followed by music clubs (tape and record clubs). Also of note, a significant number (6%) of purchases by Hispanic consumers are made at flea markets, nightclubs and/or concerts. The RIAA assumes this pattern reflects the better availability of Spanish language product at independent stores and off-site venues such as clubs or flea markets.

Radio Most Influential Hispanic consumers report that radio stations (67%) most influence their music listening habits. Their genre of choice, not surprisingly, is Spanish music (63%) followed by Easy Listening (20%) and Rap/Hip-hop (13%). Among Hispanics, the most popular sub-genres of Latin music (as defined by respondents), are Spanish language (44%), Mexican (24%) and Merengue and Salsa tie for third (8%).

Survey Methodology More than 900 telephone interviews among Hispanics aged 14-54 years old were conducted in New York City, Los Angeles, Miami, Houston, Chicago, San Francisco and Phoenix in September 1999 by The Market Segment Group. The ethnic composition of the study closely reflected the ethnic composition of the United States' Hispanic population. The interview was conducted in the respondent's language of preference (Spanish or English). In order to participate, the respondents were screened to be of Hispanic origin or descent and to be a music purchaser within the past year. A detailed executive summary (PowerPoint97 format) of the survey's findings is posted on the homepage of the RIAA website at www.riaa.com