RHYTHMIC CONNECTIONS: AFRO-CHILEAN RHYTHMS & INVESTMENT OPPORTUNITIES IN CULTURAL FUSION
African Music Investment Newsletter Issue 10: July 2025
EXECUTIVE SUMMARY
The intersection of African culture and Chilean music represents one of Latin America's most compelling yet underexplored cultural phenomena. While Chile's music market reached USD $199.85 million in 2024 with streaming accounting for over 85% of revenues [1], the profound African influences that helped shape Chilean musical identity remain largely hidden from mainstream discourse. This newsletter examines the historical connections between African and Chilean musical traditions, analyzes the current market dynamics, spotlights key musicians bridging these cultures, and identifies lucrative investment opportunities spanning blockchain technology, traditional ETFs, and cultural merchandising.
Santiago has emerged as the world's reggaeton streaming capital with 400 million monthly Spotify streams [2], yet the African roots of Chilean music—from the national dance cueca to contemporary urban fusion—tell a deeper story of cultural resilience and artistic innovation. As Latin music revenue in the US reached a historic $1.4 billion in 2024 [3], investors and cultural enthusiasts have unprecedented opportunities to participate in this growing market while supporting underrepresented Afro-Chilean artists and traditions.
THE HIDDEN AFRICAN ROOTS OF CHILEAN MUSIC
Historical Foundations and Cultural Erasure
The African influence on Chilean music extends far deeper than conventional historical narratives suggest. Despite official educational systems historically claiming that Chile's cold climate made it "too difficult for black people to reach the Andes" [4], substantial evidence reveals a rich history of African presence and cultural contribution dating back centuries.
The Mapuche people, Chile's indigenous inhabitants, possessed a word that illuminates this hidden history: "curiche," where "curi" means black and "che" means people [4]. This linguistic evidence points to historical interactions between African and indigenous communities that official Chilean history has systematically erased. Archaeological and cultural evidence suggests that African mothers often gave their children to Mapuche communities for safety, leading to cultural mixing in southern Chile where Mapuche beliefs that "land is for everyone to live" created more inclusive environments [4].
The cueca, Chile's national dance, exemplifies this cultural fusion. Originating from a blend of Andalusian and Afro-Peruvian traditions, the cueca acquired its distinctly Chilean character after independence, incorporating African rhythms and footwork patterns alongside Spanish string instruments [5]. This dance represents not merely artistic expression but a living testament to the African diaspora's enduring influence on Chilean cultural identity.
Contemporary Cultural Reclamation
Modern Chilean artists are actively reclaiming and celebrating these African connections. The tumbe carnaval tradition in Arica represents one of the most direct links to African musical heritage, where Afro-Chileans have participated in and shaped Chilean national music for generations [6]. This conscious revival, based on collective memory of Black cultural practices, challenges the whitewashed version of Chilean history that has dominated official narratives.
The recognition of Afro-Chileans as a distinct cultural group gained momentum in 2019 when the Chilean government began formal recognition processes [7]. This political acknowledgment has created new opportunities for cultural expression and economic development, as Afro-Chilean communities work to preserve and monetize their unique cultural heritage.
CHILEAN MUSIC MARKET ANALYSIS
Market Size and Growth Dynamics
Chile's music industry has experienced remarkable transformation over the past decade, evolving from a piracy-dominated landscape to a thriving digital ecosystem. The Chilean music sector reached revenues of USD $199.85 million in 2024, representing a 32.4% growth in music collections during 2023 alone [1]. This growth trajectory positions Chile among the top 30 most relevant music markets worldwide, with streaming services commanding over 85% of total recorded music revenues.
The Latin American context provides additional perspective on Chile's market significance. According to the International Federation of the Phonographic Industry (IFPI), Latin America's music market reached USD $1.5 billion in 2023, with 86.3% of revenues derived from streaming platforms [1]. This represents the thirteenth consecutive year of growth for the region, establishing Latin America as the world's fastest-growing music market.
Digital Infrastructure and Consumer Behavior
Chile's digital music infrastructure supports this growth through robust internet connectivity and high smartphone penetration. Spotify alone claims over 3 million users in Chile's population of 18 million [8], indicating exceptional market penetration. The platform's data reveals Santiago as the global capital of reggaeton streaming, with users generating 400 million monthly streams of the genre [2].
This streaming dominance reflects broader consumer preferences, with 72.8% of recorded music revenues in Chile coming from streaming services [9]. The demographic breakdown shows Gen-Z representing 35% of reggaeton listeners, with overall reggaeton streams growing 32% year-over-year [2]. These statistics underscore the market's youth orientation and openness to urban music genres that often incorporate African and Afro-Caribbean influences.
Competitive Landscape and Market Opportunities
The Chilean music market's competitive landscape includes both global platforms and emerging local services. While Spotify dominates with its massive user base, YouTube Music maintains consistent revenue streams, and Amazon Music shows gradual growth [10]. The launch of PortalDisc, Chile's first hyper-localized streaming service, demonstrates market demand for culturally specific content that global platforms may not adequately serve [9].
This market structure creates opportunities for investors and entrepreneurs focused on Afro-Chilean and culturally diverse content. The success of Chilean urban artists on international charts, combined with growing recognition of the country's musical diversity, suggests significant potential for specialized platforms, content creators, and cultural preservation initiatives.
ARTIST SPOTLIGHT: NEWEN AFROBEAT
Origins and Artistic Vision
Newen Afrobeat stands as the most prominent example of Chilean musicians explicitly connecting with African musical traditions. Founded in 2009 by Chilean composer and singer Nicholas Urbina, the collective draws direct inspiration from Fela Kuti's Afrobeat movement while addressing contemporary Chilean social and political issues [4]. The band's name itself reflects this cultural bridging: "Newen" means "strength" in Mapuche, connecting indigenous Chilean identity with African musical forms.
Following Urbina's relocation to the United States in the mid-2010s, Newen Afrobeat reformed as a 15-member collective, demonstrating the sustainability and community-driven nature of their artistic vision. Their evolution from a single composer's project to a collaborative collective mirrors broader trends in Chilean music toward community-based artistic production and cultural activism.
Musical Innovation and Cultural Education
Newen Afrobeat's musical approach transcends simple genre imitation, creating what they term "Newen style"—a unique fusion incorporating Chilean, African, and South American influences. Their 2018 album "Curiche" exemplifies this approach, with the title track exploring the hidden history of black people in Chile through the Mapuche linguistic evidence discussed earlier [4].
The collective's educational mission extends beyond entertainment to cultural consciousness-raising. As vocalist Macarena "Maca" Rozic explains, "In Chile, or rather, in all of South America, there's no real information about Africa. There is a lot of ignorance about that big continent that has a lot of different cultures, but we just think of it as 'Africa.' Like it's just one thing" [4]. This educational component positions Newen Afrobeat as cultural ambassadors, using music to challenge historical erasure and promote cross-cultural understanding.
International Recognition and Collaborations
Newen Afrobeat's international credibility stems from direct connections with Fela Kuti's musical legacy. The collective has performed at Lagos's Felabration Festival, recorded with Femi and Seun Kuti (Fela's sons), and collaborated with original Africa 70 band members including guitarist Oghene Kologbo [4]. These collaborations provide authenticity and legitimacy to their cultural bridging efforts while creating valuable intellectual property and performance opportunities.
Their international touring success, including performances in Montreal's Festival International de Jazz and venues across Europe, demonstrates market demand for culturally authentic fusion music. This success creates a template for other Chilean artists seeking to monetize their cultural heritage while building international audiences.
Social Impact and Community Building
Beyond musical performance, Newen Afrobeat engages in social activism supporting both Mapuche rights and Afro-Chilean recognition. Their music addresses land rights, indigenous resistance, and the ongoing struggle against cultural erasure. Songs like "Cántaros" explore themes of female empowerment and collective action, while their visual presentation incorporates fabrics collected during African travels, creating tangible connections between continents [4].
This social engagement model demonstrates how cultural fusion artists can build sustainable careers while contributing to social justice movements. For investors, this approach suggests opportunities in socially responsible entertainment ventures that generate both financial returns and positive cultural impact.
INVESTMENT OPPORTUNITIES AND MARKET STRATEGIES
Blockchain and NFT Applications
The intersection of music and blockchain technology presents compelling opportunities for investors interested in Afro-Chilean cultural preservation and monetization. Music NFTs generated over $80 million globally in 2023 [11], with platforms like Royal.io enabling fans to purchase song rights as NFTs and earn royalties from streaming revenues [12]. This model could prove particularly valuable for Afro-Chilean artists seeking to maintain ownership of their cultural expressions while accessing global capital markets.
Blockchain technology addresses critical issues in music royalty distribution, where 20-50% of payments currently fail to reach rightful owners [13]. For Afro-Chilean artists historically marginalized by traditional music industry structures, blockchain-based royalty systems offer transparent, automated payment mechanisms that could significantly improve income distribution and financial sustainability.
Smart contracts enable innovative funding models for cultural preservation projects. Investors could support Afro-Chilean music documentation, artist development, and cultural education initiatives through tokenized funding mechanisms that provide both social impact and potential financial returns. Platforms like Artyfile offer limited edition music NFTs with passive income potential [14], creating templates for similar initiatives focused on Chilean cultural content.
Traditional Investment Vehicles
The MUSQ Global Music Industry ETF (NYSE: MUSQ) provides broad exposure to the global music ecosystem, with 34.2% allocated to streaming services and 35.3% to content and technology companies [15]. While not specifically focused on Latin American or Afro-Chilean content, this ETF includes major platforms like Spotify and Apple Music that distribute Chilean artists globally. The fund's 21.0% year-to-date return in 2024 demonstrates investor appetite for music industry exposure [16].
Music royalty investment funds offer more targeted opportunities for cultural impact investing. Companies like Hipgnosis Songs Fund, Round Hill Music Royalty Partners, and ICM Crescendo Music Royalty Fund have collectively invested over $20.4 billion in music rights since 2019 [17]. These funds typically focus on established catalogs from major artists, but emerging funds could target undervalued Latin American and Afro Chilean content with significant growth potential.
Direct royalty investment platforms like Royalty Exchange, ANote Music, and SongVest enable individual investors to purchase fractional shares in specific songs or artist catalogs [18]. This model could prove particularly effective for Afro-Chilean artists seeking to monetize their work while maintaining creative control. Investors gain exposure to recurring revenue streams while supporting cultural preservation and artist development.
Merchandising and Cultural Products
The global music merchandise market is projected to reach $16.3 billion by 2030 [19], with Latin music superfans spending 30% more on music-related activities than other demographics [20]. This spending pattern creates significant opportunities for Afro Chilean cultural products, from traditional textiles and instruments to contemporary fashion and digital collectibles.
Cultural tourism represents another substantial opportunity, particularly given Santiago's status as the world's reggaeton streaming capital. Music-focused tours highlighting Afro-Chilean heritage, combined with educational content about African influences on Chilean culture, could attract both domestic and international visitors. The success of similar initiatives in other Latin American countries suggests strong market demand for authentic cultural experiences.
Digital content creation offers scalable monetization opportunities for Afro-Chilean cultural preservation. Documentaries, online courses, streaming content, and educational materials about African influences on Chilean music could generate revenue while serving important cultural preservation functions. Platforms like Netflix and Amazon Prime have demonstrated appetite for Latin American content, creating distribution opportunities for high-quality cultural programming.
Risk Assessment and Mitigation Strategies
Investment in Afro-Chilean music culture involves several risk categories that potential investors should carefully consider. Market risks include the volatility of streaming revenues, changing consumer preferences, and competition from established entertainment companies. Cultural risks involve the potential for appropriation concerns, authenticity challenges, and community resistance to commercialization efforts.
Regulatory risks are particularly relevant for blockchain and NFT investments, where evolving legal frameworks create uncertainty about long-term viability. Currency risks affect Chilean market investments, as peso fluctuations can impact returns for international investors. Technology risks include the potential for platform changes, algorithm modifications, and shifts in digital consumption patterns.
Mitigation strategies should emphasize community partnership, cultural authenticity, and diversified investment approaches. Working directly with Afro-Chilean communities and artists ensures cultural legitimacy while building sustainable business relationships. Diversifying across multiple investment vehicles—from traditional royalty funds to blockchain applications—reduces exposure to any single market segment or technology platform.
Disclaimer: This is for informational purposes only and does not constitute investment advice. Always conduct your own due diligence before making any investment decisions.
REFERENCES
[1] DIMA Testimony Before the Culture, Arts, and Communications Committee (Chile). July 9, 2025. https://dima.org/resource/dima-testimony-before-the-culture-arts-and communications-committee-chile/
[2] Local Artists Help Santiago, Chile, Solidify Its Status as Spotify's Streaming Capital of Reggaeton. Spotify Newsroom. May 20, 2022. https://newsroom.spotify.com/2022- 05-20/local-artists-help-santiago-chile-solidify-its-status-as-spotifys-streaming capital-of-reggaeton/
[3] Latin Music Revenue Hits Historic $1.4 Billion in 2024, Fueled by Streaming Surge. Vinyl Me Please. April 3, 2025. https://www.vinylmeplease.com/blogs/music-industry news/latin-music-revenue-hits-historic-1-4-billion-in-2024-fueled-by-streaming-surge
[4] Newen Afrobeat: A Chilean Collective Inspired by Fela's Music and Activism. Afropop Worldwide. July 10, 2019. https://afropop.org/articles/newen-afrobeat-a chilean-collective-inspired-by-felas-music-and-activism
[5] Discovering Chilean Cueca. Number Analytics. June 19, 2025. https://www.numberanalytics.com/blog/ultimate-guide-chilean-cueca-music-dance latin-america
[6] Styling Blackness in Chile: Music and Dance in the African Diaspora. Indiana University Press. https://iupress.org/9780253041142/styling-blackness-in-chile/
[7] How Afro-Chileans Are Fighting To Be Recognized In Chile. Travel Noire. March 16, 2022. https://travelnoire.com/how-afro-chileans-are-fighting-to-be-recognized-in chile
[8] Chile is blazing a trail for music-streaming in Latin America. Music Ally. August 20, 2019. https://musically.com/2019/08/20/chile-is-blazing-a-trail-for-music-streaming in-latin-america/
[9] PortalDisc App is a new a 'hyper-localized and hyper-targeted' music streaming service in Chile. Music Business Worldwide. April 21, 2021. https://www.musicbusinessworldwide.com/portaldisc-app-is-a-new-a-hyper localized-and-hyper-targeted-music-streaming-service-in-chile/
[10] Top 5 Music and Podcasts Apps in Chile Q4 2023. Sensor Tower. https://sensortower.com/blog/2023-q4-unified-top-5-music%20and%20podcasts units-cl-64c7e0f6e1714cfff17dc5e6
[11] Crypto Music: Transforming the Future of the Music Industry. LinkedIn. March 26, 2025. https://www.linkedin.com/pulse/crypto-music-transforming-future-industry analytics-hkagc
[12] Combining Music Rights with NFTs: Royal Raises Big Money. Carpenter Wellington. https://carpenterwellington.com/post/combining-music-rights-nfts-royal-raises-big money/
[13] The Blockchain Beat: Why the music industry is listening closely. The Music Universe. https://themusicuniverse.com/the-blockchain-beat-why-the-music industry-is-listening-closely/
[14] Music NFTs: Own, Profit, and Revolutionize with Artyfile. Artyfile. January 14, 2025. https://artyfile.com/blog/music-nfts-explained-why-artyfile-limited-edition-is-the future-of-music-ownership
[15] New ETF offers exposure to global music industry, but will advisors rock out? Investment News. July 12, 2023. https://www.investmentnews.com/mutual funds/new-etf-offers-exposure-to-global-music-industry-but-will-advisors-rock out/239740
[16] MUSQ Global Music Industry Index ETF Overview. MarketWatch. https://www.marketwatch.com/investing/fund/musq
[17] The Rise of Music Investment. WIPO. April 25, 2025. https://www.wipo.int/en/web/economics/w/blogs/the-rise-of-music-investment
[18] Key Players in Music Royalty Investments. Royalty Exchange. March 7, 2025. https://www.royaltyexchange.com/blog/key-players-in-music-royalty-investments
[19] How big can music merch get? MIDiA Research. October 24, 2024. https://www.midiaresearch.com/blog/how-big-can-music-merch-get-midias-latest-report-charts-the-course-to-16b-by-2030
[20] Latin music superfans spend over 30% more on music-related activities. Music Business Worldwide. October 3, 2023.
https://www.musicbusinessworldwide.com/latin-music-super-fans-spend-30-more on-music-related-activities-than-other-music-super-fans-in-the-us-new-luminate report-find123/