Latin Music Revenue Surpasses $1 Billion For The First Time

Revenues from Latin music in the United States reached an all-time high last year, surpassing $1 billion thanks to 24% growth that exceeded the general industry.

Latin music’s overall revenue increased from $881 million in 2021 to $1.1 billion in 2022, according to the RIAA’s year-end Latin music report, and its overall proportion of the entire music market increased from 5.9% in 2021 to 6.9%.

Latin music sales surpassed $1 billion for the first time in 2022 and expanded far more quickly than the overall business. According to Rafael Fernandez Jr., senior vice president of state public policy & industry relations for the RIAA, “That ongoing expansion testifies to an openness to new artists, music, and listening methods.

Months earlier, the RIAA’s mid-year report had already predicted that Latin music revenues would reach a new peak, driven by the success of a number of other artists who have experienced significant streaming success, including Rosala, Karol G, and Rauw Alejandro, in addition to Bad Bunny, who ended the year as the most streamed artist in the U.S. and globally.

Surprisingly, streaming accounts for 97% of Latin music sales, or more than $1 billion. Paid subscriptions within that accounted for 71% of streaming revenues and posted revenue increase of 29% to $758 million, making them the main growth driver.

Ad-supported on-demand streams (from platforms like YouTube, Vevo, and the free version of Spotify) were another significant factor in increase, highlighting how significant video is to the Latin fan. Revenue from this sector increased by 24% to $230 million, accounting for 21% of all Latin music revenue and outperforming the market average of 11%.

In contrast, revenue from online radio stations like SiriusXM and Pandora fell 5% to $73 million, accounting for 7% of streaming income. As of $11.7 million, permanent downloads were down 15% as well. They currently account for just 1% of sales.

And while though physical sales still make just a negligible fraction of total revenue—less than 1%—they are expanding. CD sales increased by 60% to $3.1 million, and vinyl sales increased by 67% to $9.1 million, indicating new growth potential for Latin music.

Latin Music Revenue Surpasses $1 Billion For The First Time

Revenues from Latin music in the United States reached an all-time high last year, surpassing $1 billion thanks to 24% growth that exceeded the general industry.

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