Latin music revenues are growing at an unprecedented rate in the United States, with consumption increasing by 15% compared to the first half of 2022. In addition, Spanish is now the second most listened to language in music in the US, accounting for an estimated 23% of listeners.
These milestones follow a banner year for Latin music revenues in 2022, when the genre hit an all-time high of $1.1 billion. In 2023, the genre is on track for another record-breaking year, with the RIAA reporting a new mid-year high of $627 million.
New data from Luminate also suggests that the upswing has been driven by hot newcomers from sub-genres such as regional Mexican, a rapidly evolving landscape that has seen a 56% increase this year alone. Spanish hitmakers such as Shakira and Karol G have already dipped their toes into the market, which collected a total of 14.3 billion on-demand streams in the first 34 weeks of 2023.
Luminate’s report also made the surprising discovery that 73% of Hispanic listeners use WhatsApp to discover new music and communicate, 265% more than the general population. This fact seems to hold true on a commercial level, as the latest single from streaming juggernaut Bad Bunny was announced on the platform’s newly launched ‘channels’ feature.
Latin music is also ranked as the 5th most popular genre in the US, with R&B at number 1, followed by hip-hop, pop, rock and country. Also worth noting: Latin music listeners spend 120% more per month on music-related activities than other listeners, and 58% of Latin fans report spending more than half of their monthly music spend on live events.
However, streaming is the main driver of this growth, accounting for 98% of Latin music revenues. Paid subscriptions reached a total of $431 million, accounting for more than two-thirds of total revenues. Additional revenues from digital and customised radio services (Pandora, SiriusXM and internet radio services) grew by 13% to $36 million – a significant increase after a 5% decline in 2022 – to account for 6% of total Latin music revenues. Permanent downloads ($4.8 million) and physical formats ($4.7 million) each accounted for less than 1% of total revenues, falling 21% and 37% respectively in the first half of 2023.
“US Latin music revenues reached an all-time high in 2022, and growth has continued through the middle of the year and into 2023. This has been driven by both the vitality of classic hits and chart-topping new releases that have influenced the broader culture and society,” said Rafael Fernandez, Jr, RIAA Senior Vice President of State Public Policy and Industry Relations.
