Streaming Dominates, Physical Sales See Unexpected Resurgence

The Latin music scene in the United States is thriving, generating a record $1.4 billion in revenue. This figure, reported by the Recording Industry Association of America (RIAA), marks an 18% increase over the previous high set in 2005.This surge underscores the growing influence and popularity of Latin music within the broader American market.

Streaming platforms are the primary engine behind this growth, accounting for a staggering 98% of the total revenue. This marks the third consecutive year that Latin music revenue has surpassed the $1 billion mark, solidifying its position as a meaningful force in the music industry. The dominance of streaming reflects a broader trend in music consumption, where digital access and convenience are paramount.

Latin Music Outpaces Overall US Music Industry growth

Notably, the growth rate of Latin music revenue continues to outpace the overall growth of the US music industry. For the ninth consecutive year, Latin music has demonstrated a higher annual growth rate, exceeding the general US market’s 5.8% increase. This sustained outperformance highlights the increasing appeal and market penetration of Latin music across diverse audiences.

the Power of Streaming: Free vs.Paid Subscriptions

within the streaming landscape, both ad-supported and paid subscription models contribute significantly to the overall revenue. Ad-supported platforms like YouTube and Spotify’s free tier generated $354 million. However, paid subscriptions represent the lion’s share of the income, accounting for over two-thirds of the total.These subscriptions grew at a faster rate than any other streaming format, increasing by 6% to reach $967 million. This indicates a strong consumer willingness to pay for ad-free, on-demand access to Latin music.

Unexpected Twist: Physical Sales Experience a Comeback

While streaming dominates, physical formats of Latin music experienced a notable resurgence. Sales increased significantly from $8.5 million to $16.6 million year-over-year.This unexpected growth suggests a renewed interest in tangible music products, possibly driven by collectors, audiophiles, and fans seeking a more immersive and nostalgic listening experience. This trend mirrors a broader vinyl revival seen across various music genres.

Ther are still more opportunities to expand payment streaming and introduce the nostalgia of the vinyl in the Latin market.
Matthew Bass, Vice President of Gold and Platinum Operations, RIAA

Breaking Down Barriers: The Future of Latin Music in the US

Industry experts emphasize the role of streaming platforms in breaking down linguistic barriers and fostering a more inclusive and diverse music landscape. The accessibility and global reach of these platforms have enabled Latin music to connect with wider audiences, transcending geographical and cultural boundaries.

These applications demolish linguistic barriers to mold more boldly the future of American music every year.
Rafael Fernández Jr., Senior Vice President of Public Political State and Latin music, RIAA

The continued growth of Latin music in the US market reflects its increasing cultural meaning and its ability to resonate with a diverse and evolving audience. As streaming continues to evolve and physical formats find new niches, the future of Latin music in the US looks shining.