Latin music in the US generated $627 million in gross revenues in the first half of 2023, according to the Recording Industry Association of America’s (RIAA) Mid-Year 2023 Latin Music Report. This represents a 14.8% year-on-year growth and an increase in Latin music’s share of overall US recorded music revenues from 7.1% to 7.5%. Streaming accounted for 98% of total Latin music revenues, with paid subscriptions making up over two-thirds of these revenues. Ad-supported on-demand streams, however, declined by 0.2% year-on-year due to economic challenges in the advertising market.
The report highlights the continued success of Latin music stars such as Bad Bunny and Peso Pluma in driving streaming growth. Paid subscriptions, which exclude ‘limited-tier’ services and count multi-user plans as a single subscription, grew by 23% year-on-year in H1 2023 to reach $431.4 million. Ad-supported on-demand music streaming revenues accounted for 23% of Latin music revenues, compared to 10% for US recorded music overall. However, it experienced a slight decline of 0.2% year-on-year, reaching $147.6 million. Revenues from digital and customized radio services rebounded from a decrease in 2022, growing 13% year-on-year to reach $36 million. The physical market for Latin music saw a decline of 37.1% year-on-year, with vinyl album revenues falling by 41.1% year-on-year.
According to Rafael Fernandez, Jr., RIAA SVP of State Public Policy & Industry Relations, US Latin music revenues reached an all-time high in 2022 and the growth has continued into 2023. This growth can be attributed to both classic hits and new chart-topping releases. The RIAA Honors celebrated icons like Gloria Estefan and Artist of the Year Sebastián Yatra, highlighting the power of diversity and new voices in music, politics, and communities across the country.
