Montevideo is the cultural capital and largest city of Uruguay.  It is located in south-eastern South America between Brazil and Argentina. That proximity to the powers of South American popular music, with tens of millions of people, is a vital influence  and potential market for established and up and coming local acts. The melting pot of cultures (Spanish, African and Indian) is reflected in the music, and from these influences several native styles emerged: candombe, tango, milonga, murga as well as a diversity  of musical fusions that contribute to enhance the wealth of Uruguayan music.

Today the music sector in Uruguay is primarily composed of local businesses; of all music sales, 43 % are from  local artists. The sector also benefits from the Spanish language­ the second most spoken language in the world- which represents new and larger markets and audiences.   With 3.3 million inhabitants the opportunity to expand local market reach and grow internationally is undeniable.

The local government, supported by national bodies and Montevideo based entertainment industries, set out to facilitate local networking and distribution opportunities and consolidate the music sector in order to boost the growth of the sector.As part of Vivi Cultura, a co-operation project between the Uruguayan government and the Millennium Development Goal Fund, a music cluster was established in Montevideo to support  the production and distribution of original  music to larger markets. The Music Cluster- Uruguay is Listening was set up to promote Uruguayan musicians at home and abroad.

The Cluster brings together ten national public and private players to coordinate, plan and execute music development strategies. 

Since 2009 the Cluster has gone from strength to strength.   At the national level a music export agency was created to facilitate international trade.  The export agency is supported through a newly instituted Association of Music Producers and Managers. The Association provides business training to local acts to facilitate market access to domestic and then international markets.  

New institutional arrangements and networks also gave rise to various projects such as Papgayo Azul, an online children's music store and Dinamica, a network of production and promotion firms and technicians.

More recently a new online portal with streaming videos and audio, news services, musician profiles and contact information was launched featuring over 300 artists and musicians.  The portal is complemented by a printed catalogue that features the best of Uruguayan Candombe, Classical, Electronica, Hip Hop, Jazz, Folk Roots, Rock, Tropical and Children's music.  The Music Cluster-Uruguay is Listening project has enabled musicians to access new markets and audiences, gain new skills and explore new means of distribution and production.

Hugo Achugar, National Director of Culture, Ministry of Education and Culture, says that supporting the continued growth of local music is both a national cultural and economic priority. Uruguayan artistic production, he says, in all its expressions, especially in this case its music, is not only a symbol of the creativity of artists, but also an area that embodies one of the central challenges of the national economy:  the export of goods with high added value.