Latin music revenues in the United States rose 18 percent in 2018, to $413 million, marking the second consecutive year for double digit growth in the Latin music market, according to a new report by the Recording Industry Association of America.
Streaming now makes up 93 percent of total Latin music revenues in the U.S., reports the RIAA, compared with 75 percent for the total U.S. music market.
“Latin music’s transformation from a physical-based business to a streaming driven one is even faster than the overall U.S. music market’s turnaround,” reads the 2018 Year-End Latin Music Revenue Report. That is mostly driven by paid subscriptions, which now make up 58 percent of total Latin revenues in the U.S.
Paid subscriptions to Apple Music, Spotify Premium, Amazon Unlimited and other services grew 48 percent year-over-year to $239 million, making subscriptions the biggest driver of growth. Revenues from on demand ad-supported services (YouTube, Vevo, ad-supported Spotify) grew at 34 percent to $91 million. This category made up 24% of total Latin music revenues, a significantly larger proportion than the 8% it contributed to the overall U.S. music market. Streaming service revenues in aggregate grew 26% for the year to $383 million.
The report cited J Balvin, Daddy Yankee, Karol G and Ozuna as some of the artists who helped fuel the rise of digital growth for Latin music.
Latin music now makes up 4.2 percent of total $9.8B US music business, slightly up from 4.0 percent last year. RIAA data for the U.S. Latin market now includes estimates for both major record label and indie-distributed Latin music.
On the downside, digital download sales fell 23 percent to $20 million, and revenues from physical product amounted to $6 million, down 63 percent versus 2017. Combined, they only accounted for 6 percent of U.S. Latin music revenues, their lowest level to date.
“Overall, the Latin music market is showing signs of strength again,” concluded the RIAA’s Latin music revenue report; “We are excited for the next chapter of this comeback story.”