Latin music revenues in the U.S. increased 18.6% in the first half of 2020, to $296.1 million, marking the fourth consecutive year for double-digit percentage growth at retail value in the Latin music market, according to a new report by the Recording Industry Association of America (RIAA), Billboard has learned.
Whilst significant differences were reflected between Q1 and Q2 as a result of retail store closures, tour cancellations, and others affected by the COVID-19 pandemic, streaming now accounts for 96% of the Latin music market. The report notes that Latin music continued to grow its share of overall U.S. music revenues to 5.2% and total streaming revenues grew 20.3% to $285.2 million.
Similar to the overall U.S. market, the biggest driver of growth for Latin music in the past year was paid streaming music subscriptions with revenues rising 27.6% to $196.2 million. Paid subscriptions now account for over two-thirds of the Latin music streaming market in the first half of 2020.
“These are difficult times for the country and many parts of the music industry,” Mitch Glazier, Chairman & CEO, RIAA, said in an official statement. “The investment music creators have made in streaming are helping to sustain the industry, but the impacts of COVID-19 are felt through closed local music venues and silent theaters and concert halls.”
Although revenues from ad-supported on-demand services, including YouTube, Vevo, and Spotify’s free version, grew 10.9% year-over-year to $59.1 million in Q1, the category was impacted by broader advertising declines in Q2 due to the global health crisis. Accounting for 19.9% of the Latin market compared with 7.5% for the overall market, Latin music revenues continued to over-index on ad-supported services relative to the overall market, the report shows. Digital and customized radio services revenue decreased 0.6% to $29.9 million.
Also on the downside, digital and physical sales continued to shrink, accounting for only 2.7% of the market, combined. Digital download sales for singles and albums fell 19.9% by value to $6.8 million and physical shipments of Latin music products decreased 61.5% to $0.8 million.
Glazier added: “The RIAA and its members will continue to work with the entire music community to help artists, musicians, and music creators gain access to necessary aid and benefits so they can continue to make the music fans love.”
In addition, the trade organization has partnered with Warner Music Latina, Universal Music Latin Entertainment, and Sony Music Latin to celebrate the growth and globalization of Latin music during Hispanic Heritage Month.
Watch the videos below: