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Latin labels in the United States are excited by the potential they see for these Spanish-language acts to gain mainstream radio airplay. Until now, radio exposure has been hard to come by, even at Latin stations.

Reggaeton -- Puerto Rican dance music with reggae influences -- “broke down barriers for Spanish-language music in Anglo radio formats,” according to independent Latin music marketer Rich Isaacson. “It’s also opening the doors to urban music in Spanish formats.”

Numerous labels are moving swiftly to take advantage of these developments.

Last year, EMI Music’s U.S. Latin division created an imprint, New Element, which has begun releasing albums by such urban artists as Vico C.

Likewise, Warner Music Latina launched a new imprint, Mic Discos, for its Latin urban product.

And in February, Universal Music Group unveiled its Machete label, dedicated to Latin urban music.

Among indies, upstart New York-based distributor UBO, founded last year, has placed several reggaeton albums in the top 10 of the Billboard Top Latin Albums chart. It is now venturing into more hardcore rap.

In Los Angeles, leading Latin label Univision Music Group is considering launching a marketing division whose sole focus will be urban music.

Strong sales
A number of urban regional acts already have enjoyed notable sales, despite a lack of airplay. The most prominent is Akwid, whose first two Univision albums have sold a combined 260,000 units, according to Nielsen SoundScan.

But Akwid’s sales fall far short of the biggest-selling reggaeton album -- Daddy Yankee’s 2004 El Cartel/VI Music release “Barrio Fino,” which has moved 477,000 copies. Panama’s El General, considered the father of reggaeton, has sold 500,000 albums since 1991.

The labels are hopeful more Latin hip-hop acts will enjoy similar success.

“I think it’s definitely going to happen,” says Isaacson, a principal of the Fuerte Group, a New York-based management, promotion and music company focused on the U.S. Hispanic market. Fuerte’s clients include Universal Music Latino artist Don Dinero.

A founder and former president of urban label Loud Records, Isaacson remembers that five years ago, Loud artist Big Pun could not get his single “100%” played on English-language radio because it had a Spanish line in the chorus.

“The programmers would come back and say, ’Too Spanish.’ We couldn’t build momentum with the record.”

Now, reggaeton is played regularly at top 40 stations, and reggaeton titles appear often on the Billboard Hot Latin Songs chart.

For the most part, straight-ahead Latin rap or hip-hop is still absent from the airwaves, but there have been a few radio success stories. Puerto Rican rapper Vico C has been a staple of U.S. tropical radio for almost a decade. Elsewhere, Mexican act Control Machete has broken through in its home market and Cuban band Orishas has had success in Europe.

Taking on the mainstream Will additional Latin urban acts catch on?

“I don’t think the kids just want reggaeton,” says Gustavo Lopez, president of UMG’s new Machete imprint. “Reggaeton has opened up the doors. ... It’s a catchy movement, but it’s not just about Puerto Ricans anymore. As we begin to introduce hip-hop, rap music (on) radio, music that competes with the 50 Cents of the world, with the Puff Daddys of the world, I think this will evolve into a true business.”

Machete’s business is based partly on reggaeton. In March, Machete acquired a 50% stake in reggaeton label VI Music. Puerto Rican star Hector El Bambino is the first artist signed under the joint venture.

Beyond that, Lopez says, “we have a focus in building the West Coast urban movement. And that’s hip-hop, that’s R&B. In fact, it’s mostly U.S.-based acts.”

The West Coast urban movement, which has been simmering for several years, actually hit the Billboard Top Latin Albums chart in 2003, before reggaeton’s breakthrough last year.

The charge was led by Akwid, which blends rap with elements of regional Mexican music. While airplay is still absent, urban regional has developed a significant following. Most recently, two Univision compilations, “El Movimiento de Hip Hop En Espanol.” volumes one and two, made the top 10 on the Latin albums chart.

“We happen to call it ’urban regional,’ because it’s a wonderful generic umbrella,” says Jose Behar, Univision Music Group president/CEO.

“But the truth is, it’s rap/hip-hop. The big distinction in urban regional today is, it speaks to the plight and suffering of the second- and third-generation of Mexican-Americans, whereas reggaeton is more happy-go-lucky.”

While reggaeton and urban regional are different in sound, they are also each associated with a specific region -- reggaeton with Puerto Rico and urban regional with the West Coast.

Now, Latin labels are signing acts that are simply hip-hop in Spanish, without fitting neatly into the established reggaeton or urban regional categories.