The name reggaeton only gained prominence in the mid-1990s (from the 1994 to 1995 period), with the Dem Bow beat characterizing the genre; this is in contrast to the more reggae, dancehall and hip hop-derived tracks previously created. The name was created in Puerto Rico to signify the hybrid sound, and distinguish it from the previous Spanish reggae, created from the years of mixing the different genres. Today, the music flourishes throughout Latin America.

Reggaeton soon increased in popularity with Latino youth in the United States when DJ Blass worked with artists such as Plan B and Speedy in albums such as Reggaeton Sex.

Reggaeton expanded and became known when other producers followed the steps of DJ Playero, like DJ Nelson and DJ Eric. In the early 90s albums like DJ Playero's Playero 37 (in which Daddy Yankee became known) and The Noise: Underground, The Noise 5 and The Noise 6 were very popular. Singers like Kings Of Flow, Don Chezina, O.G. Black & Master Joe, Baby Rasta & Gringo, and Lito Y Polaco among others were very popular.
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Many now popular producers, such as Luny Tunes, Noriega and Eliel, first appeared in the reggaet�n scene in 2003. Albums such as Mas Flow, The Last Don, and Las Gargolas 4 expanded reggaeton's popularity among Latinos in the United States.

From: http://ping.fm/seJ4Z