MBW’s Stat Of The Week is a series in which we highlight a single data point that deserves the attention of the global music industry. Stat Of the Week is supported by Cinq Music Group, a technology-driven record label, distribution, and rights management company.
In April, MBW predicted that the recorded music market for Latin artists in the United States will generate over a billion dollars in revenue across the 12 months of this year.
Latin music generated $886.1 million on a retail basis (money spent on streaming subscriptions, as well as physical and digital music), in the US in FY 2021, which was up by 35.4% versus the prior year.
As reported in April, this annual revenue figure will now only have to rise by a further 12.9% (+$114m) in 2022 to hit 1 billion dollars.
According to new mid-year data released in a report by the RIAA, on a retail basis, Latin Music is very much on course to hit $1 billion in revenues in the United States this year, after growing 23% in the first half of 2022, to reach $510 million.
Not only is Latin Music still on course to hit $1bn in revenues in the US by the end of the year, but its growth is also outpacing that of the wider US recorded music market.
US recorded music revenues in the first half of 2022 rose 9% YoY to $7.7 billion in H1 2022, whereas Latin Music grew 23% YoY in H1 2022.
As a result, Latin Music also grew its share of recorded music revenues in the US to a record high of 6.6% of total revenue.
Highlighting the pace of this growth, in monetary terms, Latin music revenues grew $97 million YoY in H1 2022, which is pretty much flat versus the $99 million YoY growth seen in H1 2021 (see below).
As MBW reported at the end of September, growth of overall US recorded music revenues only slowed significantly in H1 2021.
On a retail basis, recorded music revenues in the US grew $700 million YoY to $7.7 billion in the first half of this year (up from $7 billion in H1 2021).
Back in H1 2021, on a retail basis, US recorded music revenues grew by $1.4 billion YoY to $7 billion.
In other words, in the US, overall mid-year recorded music growth seen in H1 2022 was cut in half compared to H1 2021.
Streaming formats
Boosted by global streaming stars such as Bad Bunny, Rauw Alejandro, J Balvin and Becky G, revenue from streaming formats was the primary driver behind Latin Music’s growth in H1 2022.
According to the new RIAA data, Latin music revenues generated from streaming (across advertising, video & audio streams, as well as paid and ad-supported tiers) grew 24% YoY in H1 and comprised 97% of total Latin revenues, or $494.7 million.
Paid music subscriptions accounted for the lion’s share of Latin revenues in H1, growing 25% YoY to reach $350 million. Music subscriptions accounted for 71% of Latin music streaming revenues in H1 2022, and 69% of overall Latin revenues.
Ad-supported on-demand streams of Latin Music (from services like YouTube, Vevo, and the free version of Spotify) grew 39% to $112 million in H1 202.
The RIAA reports that this ad-supported category “significantly over-indexes in share” at 22% of total Latin music revenues, versus 11% of overall music revenues.
Meanwhile, physical formats of Latin music made up less than 2% of revenues in H1.
Revenue generated from Vinyl albums of Latin music more than doubled (off a small base) to $6 million in 1H 2022, while CDs grew 21% to $1.4 million.
“Latin music continues to flourish with 23% growth over the first half of 2022, outpacing overall recorded music revenues and reaching an all-time high in share.”
Michele Ballantyne, RIAA
Commenting on the new data, RIAA Chief Operating Officer Michele Ballantyne said: “Latin music continues to flourish with 23% growth over the first half of 2022, outpacing overall recorded music revenues and reaching an all-time high in share.
“Bad Bunny’s Un Verano Sin Ti has been the most listened to album released this year across all genres – that is the power of Latin music to reach and connect with fans universally!
“The dynamic creative partnerships between Latin artists and their label teams drive incredible results year after year.”
RIAA Senior Vice President, Research and Economics, Josh Friedlander added: “U.S. Latin revenue rose to more than half a billion dollars during the first half of 2022.
“Once again, streaming remains king in the Latin segment of the U.S. market, driving a remarkable 97% of total revenues.
“Both of the largest streaming categories – paid subscriptions and on-demand ad-supported streaming – as well as CDs and the rejuvenated vinyl format, grew for Latin music over this period.”
Music Business Worldwide
