The Recording Industry Association of America (RIAA) has released its Mid-Year 2023 Latin Music Report, revealing that Latin music generated $627 million in gross revenues in the US in the first half of the year. This represents a 14.8% year-on-year growth and 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. Streaming continued to be the key driver of growth for Latin artists, with paid subscriptions contributing to more than two-thirds of total Latin music revenues in the US. However, ad-supported streaming revenues for Latin music were down 0.2% year-on-year, reflecting challenges in the advertising market.
The RIAA’s report highlighted that Latin music revenues are on track to grow by over $150 million year-on-year across the full calendar year of 2023. This follows a successful year in 2022, where 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, particularly paid subscriptions, played a significant role in the growth, accounting for 98% of total Latin music revenues in the US in the first half of 2023. Ad-supported streaming revenues made up a larger percentage of Latin music revenues (23%) compared to the overall US recorded music market (10%), but these revenues were slightly down year-on-year due to challenges in the advertising market.
The physical market for Latin music, including vinyl LPs, CDs, and other physical formats, experienced a significant decline of 37.1% year-on-year in the first half of 2023, falling to a total value of $4.7 million. Revenues from vinyl albums of Latin music also saw a substantial decrease of 41.1% year-on-year to $3.6 million. In contrast, the wider US market saw a 5% year-on-year increase in revenues from physical music formats, reaching $882 million in the first half of 2023. Revenues from vinyl records in the wider US market grew 1% year-on-year, accounting for 72% of physical format revenues.
The RIAA’s report indicates a continued growth trend for Latin music in the US, driven by the popularity of chart-topping releases and the impact of Latin artists on broader culture and society. The report also highlights the importance of diversity and new voices in music, politics, and communities across the country. Streaming remains the dominant revenue driver for Latin music, with paid subscriptions contributing the most to overall revenues. However, ad-supported streaming revenues showed a slight decrease, reflecting challenges faced by the advertising market. The physical market for Latin music experienced a significant decline, while the wider US market saw an increase in physical music format revenues, driven largely by vinyl records.
