It’s no secret that Latin Music has become a huge part of the US music industry (not to mention the music industry in many other countries as well).
In 2022, Latin Music revenues in the US surpassed the USD $1 billion mark for the first time, and in 2023, they hit a new record at around $1.4 billion.
This year, Latin Music could easily set a new annual record once again.
According to new data from the Recording Industry Association of America (RIAA), US Latin Music revenues jumped 7.3% YoY in the first half of 2024, to $685.5 million, setting an all-time first-half record.
“Latin music in the US continues to break through and reach new heights, now providing nearly 8% of total recorded music revenues in the country,” said Matt Bass, Vice President of Research/Gold and Platinum Operations at RIAA.
“Strong growth across all major formats – including a doubling of physical revenues – has enabled Latin music’s diverse mix of new and established artists’ innovative styles to fuel sustained momentum for over a decade.”
Latin Music held a 7.9% share of overall recorded music revenues in the US in H1 2024, up slightly from 7.5% in H1 2023, and the same percentage as for 2023 as a whole.
According to the RIAA’s midyear report published in August, the US recorded music market overall generated USD $8.65 billion in H1 – up 3.9% YoY.
Not surprisingly, paid streaming subscriptions were the largest revenue contributor. At $468.1 million, they accounted for 68% of Latin Music’s US revenues in H1.
But it’s in ad-supported streaming where Latin Music is particularly over-represented. Revenues from free music services rose 10.2% YoY, to $166.3 million, amounting to about a quarter of all revenues. That share is two-and-a-half times more than the 10% that ad-supported brings for all recorded music revenue.
“Strong growth across all major formats – including a doubling of physical revenues – has enabled Latin music’s diverse mix of new and established artists’ innovative styles to fuel sustained momentum for over a decade.”
Matt Bass, RIAA
Sales of physical media doubled in H1 2024, to $9.0 million from $4.5 million the year before, with growth in both CDs and vinyl. However, physical remains a considerably smaller part of the Latin music market than the overall recorded music market, accounting for 1% of sales, versus 9% for the market overall.
Despite their over-representation in ad-supported streaming, Latin Music fans seem to be willing to shell out more to support their favorite artists.
According to a 2023 report from market monitor Luminate, latin superfans spend 30% more on music consumption than other superfan communities in the US.
“There’s a reason Latin is the fastest-growing genre on US streaming services. Fans just can’t get enough of its undeniable energy, emotion, power and joy.”
Michele Ballantyne, RIAA
And while the genre has made great strides in the US in recent years, it has absolutely dominated music in Latin American countries.
According to a report from Spotify earlier this year, Spanish-language music accounted for 87% of music streams in Colombia in 2023, 88% of streams in Mexico, and 94% in Argentina, where it was just 25% a decade earlier.
Spotify said the number of Latin Music listeners on its service jumped 986% from 2014 to 2023 – though it’s important to note that Spotify’s total subscriber base also grew rapidly during that period.
“Latin music keeps soaring to new heights – setting US revenue records as we report today and driving the culture forward across the globe,” RIAA President and COO Michele Ballantyne said.
“There’s a reason Latin is the fastest-growing genre on US streaming services. Fans just can’t get enough of its undeniable energy, emotion, power and joy.”
Music Business Worldwide