Latin music generated $627 million in gross revenues in the US in the first half of the year.
That’s the headline stat from the Recording Industry Association of America’s (RIAA) Mid-Year 2023 Latin Music Report, which, published Wednesday (September 27), shows that on a retail basis (money spent on streaming subscriptions, as well as physical and digital music), Latin music revenues grew 14.8% YoY in the US in H1.
Latin music’s share of overall US recorded music revenues grew from 7.1% in the first half of 2022 to a new high of 7.5% in the first half of 2023.
As reported last week, the entire US recorded music industry generated USD $8.4 billion in gross revenues in the first six months of 2023, which was up 9.3% YoY.
The RIAA notes that its Latin music reports now include revenues from social media platforms such as Facebook, TikTok, and YouTube Shorts and as such, has revised its data for 2022 to include these sources, “in addition to other revisions”.
Even taking these revisions into account retrospectively, US Latin music revenues grew by $81 million YoY in the first half of 2023 – and are therefore on course to grow by more than $150 million YoY across the full calendar year.
These new H1 Latin Music results for 2023 follow a year (2022) in which Latin music surpassed $1 billion in US recorded music revenue for the first time (and claimed an 8% market share of streaming revenues).
Streaming formats
Due to the continued global streaming success of Latin Music stars like Bad Bunny and Peso Pluma, streaming continued to drive a majority of the growth in the recorded music market for Latin artists in the United States, accounting for 98% of total revenues.
According to the new RIAA data, paid subscriptions comprised more than two-thirds of total Latin music revenues in the US in H1, and grew 23% YoY to reach $431.4 million.
The average number of subscriptions through the first six months of 2023 across all genres in the United States was 95.8 million, up 5.8 million YoY (compared with 90 million for H1 2022).
(According to the RIAA, these subscription account figures exclude ‘limited-tier’ services and count multi-user plans as a single subscription.)
Ad-supported on-demand music streaming revenues (from services like YouTube, the free version of Spotify, and social media platforms) continued to make up a larger percentage of revenues for Latin music (23%) than for US recorded music overall (10%).
However, ad-supported on-demand streams of Latin Music revenues were down 0.2% YoY, reaching $147.6 million in H1, which the RIAA notes reflects “broader economic challenges in the advertising market”.
Revenues from digital and customized radio services (such as Pandora, SiriusXM, and internet radio services) grew 13% YoY to $36 million – rebounding from a 5% decrease in 2022 – and making up 6% of total Latin music revenues.
Elsewhere in H1, after growing in 2022, the physical market for Latin music (including vinyl LPs, CDs and other physical formats) fell 37.1% YoY to reach a total value of $4.7 million versus $7.4 million in H1 2022 (see below).
Revenue generated from Vinyl albums of Latin music fell 41.1% YoY to $3.6 million in H1 2023, from $6 million in H1 2022.
In the wider US market, revenues from physical music formats reached $882 million in the US in H1, up 5% YoY versus the prior year.
Revenues from vinyl records in the wider US market grew 1% YoY or by $9.8 million, to $632.4 million, and accounted for 72% of physical format revenues.
“US Latin music revenues reached an all-time high in 2022, and the growth has continued mid-year into 2023.”
Rafael Fernandez, Jr, RIAA
Commenting on the new Latin Music Mid Year Report, RIAA SVP, State Public Policy & Industry Relations Rafael Fernandez, Jr. said: “US Latin music revenues reached an all-time high in 2022, and the growth has continued mid-year into 2023.”
Added Fernandez: “This has been driven by both the vitality of classic hits and chart-topping new releases that have influenced broader culture and society.
“This sustained passion for Latin music was at the heart of this year’s RIAA Honors, which celebrated Icon Gloria Estefan and Artist of the Year Sebastián Yatra, alongside policymakers and executives who came together to tell an All-American story about the power of diversity and new voices in music, politics and communities across the country.”
