LATIN MUSIC INDUSTRY UPBEAT CD SHIPMENTS INCREASE 20%.

Byline: Evan Pondel Staff Writer

Latin music shipments jumped 20 percent in the first half of 2004, a welcome reprieve at a time when rampant piracy continues to poke holes in record labels' revenues.

CDs shipped to retailers increased by 3.5 million units to 21.2 million units in the first six months of 2004 compared with the same period in 2003, the Recording Industry Association of America reported Thursday. That translates to 15.9 percent growth in dollar value. But when compared with three years ago, shipments of CDs to retail are still down 2 percent and all Latin music product shipments are down 14.6 percent.

Analysts are confident those trends will change as ``more people are interested and willing to pay for music these days and we are seeing better content out there,'' said Michael Gartenberg, vice president and research director at Jupiter Research in New Jersey.

Much of the new content is surfacing in Latin DVD music videos, with the format posting a 249.5 percent gain in units shipped and a 222.5 percent increase in dollar value during the first half of 2004.

The Latin music industry is also benefiting from a compelling release schedule of albums and beefed up anti-piracy programs, according to the RIAA, the Washington, D.C.-based industry tracker that represents major music labels. Curbing progress, Latin music has been particularly hard hit by physical goods or ``street'' piracy - the manufacturing and distribution of counterfeit and pirate CD-Rs.

``The Latin street piracy problem is still severe, but our investment in new anti-piracy initiatives and our expanded work with law enforcement agencies is beginning to pay off,'' Rafael Fernandez, RIAA's vice president of Latin music, said in a statement.

Also paying off is the rise in popularity of radio stations that play Latin music. Whether it's tropical, salsa, ranchero or bachata - a form of music that originated in the neighborhoods of the Dominican Republic - more U.S. radio stations are spinning music for a burgeoning Hispanic population.

In Los Angeles, Spanish Broadcasting System's KLAX-FM (97.9) and KXOL-FM (96.3) are drawing Latino listeners in droves. The formula: a good mix of personalities and Latin music that ``people want to hear,'' said Bill Tanner, SBS executive vice president of programming.

La Raza (97.9) is topping the charts in the region, seducing listeners with its Hispanic version of Howard Stern - Renan Almendarez Coello, known as ``El Cucuy'' (the boogyman) to fans.

Tanner said the fact that many Hispanic listeners do not have digital recording devices and portable CD players is also bolstering growth for Spanish radio stations.

``And it looks like the pool of listeners will continue to increase as the population becomes more Hispanic,'' he said.

Latin music is also turning up on cellular phones. Wireless companies and record labels see salsa music as the next big thing in popular ring tones.

Latin Garage has become a popular destination for pulsating salsa renditions. Cingular is also ramping up its Latin ring tones, adding more than 400 song titles specific to the Hispanic market in the past year.

Evan Pondel, [phone]

evan.pondel(at)dailynews.com