Monday, August 29, 2011
Are the Latin Grammys influenced by the major record labels ?
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This is a well-known and established "effect" by which major record label executives "negotiate" with the
president of The Latin Grammy which artists will participate in the award show. For example, the label
may say, "I give you this artist ( famous ), but you have to include this other one".
Record label executives and employees are permitted to sit on the "selecting committees". Selecting
committees are made up of people that know about music (artists, songwriters, producers, record label
employees and executives) .
If an employee of a major record label has an artist of the same record label that is competing, it is
obvious this member will benefit his artists. This is a "conflict of interest".
Mr. Gabriel Abaroa has to know about this type of practice because nothing is done unless it is approved
by him. Because the Independent artist has nothing to offer ( except his talent), they rarely go into the
second round or nomination.
Another fact is the positioning and manipulation of songs within certain genres. Maybe a song from a
major record artist will encounter too much competition within a category, so that song is included into
another less difficult category.
An interesting effect is the one of "marriage". Marriage meaning that the Latin Academy of Recording Arts
"marriages" an artist, for example Shakira and Juanes, both of which have won multiple awards. There is
no room for new artists. The only new artists participating are the ones that are backed up by "strong
managers", who have influeces within the Academy.
An example is that of Warner Music Mexico in which new artists have a very good chance of winning. Is
it because Alejandro Abaroa ( Gabriel Abaroa's brother and Warner Music Mexico manager of new
talent) has very good new artists almost every year ? or is it because there is favoritism ?
It has been established that major record labels are the ones calling the shots; they continue to pay
payola in a sophisticated way .
For example, lets take Wireless Latin Entertainment (WILAEN), a Florida Corporation that deals with
the download of music. It is well known, WILAEN has been in business at some time with Sony, Warner
and Peermusic
Until recently, Mr. Gabriel Abaroa was the president of this corporation. It seems
that after the discovery that during the 2009 Latin Grammy Awards, 19 of the artists performing and
presenting were featured in Mr. Abaroa's private business website (WILAEN). Interestingly, this evidence
has been discussed in multiple Facebook forums. Eventually, Mr. Abaroa's name was deleted from the
corporate documents. The fact of deleting his name from the corporate documents sent a strong
message.
The way I interpret this : The Latin Academy of Recording Arts( LARAS) realized there was an obvious
"conflict of interest", for which they asked Mr Abaroa to delete his name.
Whoever thinks that Mr Abaroa is not involved with WILAEN anymore is out of his mind !
Conflict of interest arises whenever the personal or professional interests of a president of an
organization, such as The Latin Grammys (where he has power) is also president of another company ,
such as WILAEN (where he also has power). The example is clear: if you do business with my private
company ,you'll participate in the Award show.
Loss of public confidence, credibility and a damaged reputation are the most likely results of a poorly
managed conflict of interest. Because public confidence is important to most organizations, boards
should take steps to avoid even the appearance of impropriety. Even though that is probably what
happened here, I would have approached differently. I would have send a press release stating the
"conflict of interest", and that by itself would have had resolved the issue.
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