Latin Music Revenue Passes $1 Billion for All-Time High
Written by djfrosty on April 12, 2023
Latin music revenues in the United States hit an all-time high last year, exceeding the $1 billion mark on the wings of 24% growth that outpaced the overall market.
According to the RIAA’s year-end Latin music report for 2022, total revenue jumped from $881 million in 2021 to $1.1 billion in 2022, with Latin music’s overall share of the total music market lifting from 5.9% in 2021 to 6.9%.
“Latin music revenues in 2022 exceeded $1 billion for the first time and grew significantly faster than the broader industry. That sustained expansion speaks to an openness to new artists, music and ways of listening,” says RIAA senior VP, state public policy & industry relations Rafael Fernandez Jr.
Months earlier, the RIAA’s mid year report had already suggested that Latin music revenues would reach a new peak, driven by the success not only of Bad Bunny — who ended the year as the most streamed artist in the U.S. and around the world — but also a cadre of other artists who have had major streaming success, including Rosalía, Karol G and Rauw Alejandro.
Streaming makes up a stunning 97% of Latin music revenue, accounting for more than $1 billion. Within that, paid subscriptions were the biggest growth driver, contributing 71% of streaming revenues and posting revenue growth of 29% to $758 million.
Another major contributor to growth was ad-supported on-demand streams (from services like YouTube, Vevo and the free version of Spotify), underscoring how important video is to the Latin fan. Revenue from this space grew 24% to $230 million, a 21% share of total Latin music revenues, over-indexing compared to the 11% average of the overall market.
Conversely, revenue from digital services like Pandora and SiriusXM decreased 5% to $73 million, making up 7% of streaming revenues. Permanent downloads also fell 15% to $11.7 million. They now make up only 1% of revenue.
And while physical sales remain a tiny percentage of revenue – less than 1% – they are growing. CD revenues were up 60% to $3.1 million and vinyl grew 67% to $9.1 million, signaling a fresh area of growth potential for Latin music.