Latin music earnings grew 36.6 percent year over year in the U.S. during 2021’s opening half, according to a newly released report from the RIAA, for $407.4 million in revenue across H1 2021 – or about 62 percent of 2020’s total Latin music income.
Stateside Latin music revenue attributable to streaming hiked 37.3 percent from 2020’s initial half, per the RIAA’s concise analysis, to $393.1 million – almost 96.5 percent of total income in the space. Within this continued double-digit streaming growth, revenue from paid music subscriptions jumped 41.4 percent YoY, to about $278.5 million, the report discloses.
Latin Music Half-Year Revenue Surpasses $400 Million Amid Continued Double-Digit Streaming Growth
Revenue generated by U.S. streaming sources in the Latin music market continues to grow at a steady pace. As a result, the 2018 Total U.S. Hispanic Music Industry Value Report is now available, with continued increases in U.S. streaming income over the previous year.
Through a comparison of the first half of 2018 to the first half of 2017, revenues from streaming services grew from $118.3 million to $238.6 million – a 36.6 percent increase. This growth is significant, given that the first half of 2018 was the first full six-month period that occurred after the most recent Federal Communication Commission rules regarding how audio and video files are shared.
Latin music accounted for most of this revenue growth in 2018, but grew even more than streaming.
The Latin Music Market in the U.S.
Music streaming for free and via subscription services is growing faster than any other streaming service, with Latin music enjoying a massive influx of these streaming services’ investment in “under-the-radar” Latin songs – more than half of the 39 billion songs and videos streamed in the U.S. during the period analyzed by RIAA, a majority of which arrived via on-demand, subscription services.
As streaming platforms continue to gain prominence, they’ve also become more common among fans and musicians. The report reveals that, in 2020, the number of Latinos listening to the top six on-demand streaming services collectively increased 22 percent – and 94 percent among Hispanic listeners.
Why did Latin music grow?
“People are looking to connect to stories,” says Antonio Diaz, senior vice president of research at Nielsen. “They are looking for a sense of community. And when they connect to a song or artist that means something to them, it actually has an impact on them emotionally. People feel a sense of pride.”
Donations from streaming services – and non-cash offerings like tickets, merchandise, endorsements and brand tie-ins – amounted to $155.6 million in the U.S. during 2020’s first half, the RIAA’s report attests. Roughly $15 million of these items from these services were provided by R&B/hip-hop, while Latin pop came in second, at $10.3 million.
Contemporary Latin music’s top three songs for the year are Drake’s “God’s Plan” ($4.2 million).
What did the RIAA find about the Latin music market?
Total digital music sales remained on a strong trajectory, racking up 46.9 percent in the six-month period to $251.1 million, according to the report, which found that paid subscription revenue – now the largest U.S. component of Latin music revenue – grew 55.3 percent to $129.8 million. The report added that, of the total online revenue, Spotify drove most of it, with about $91.1 million in the second quarter. The company passed the five billion monthly listeners mark in June 2018.
As the report’s author Jonathan Prince noted, streaming services continue to power the market’s performance:
“Streaming services accounted for nearly 95 percent of total digital music revenue in the United States in the first half of this year.
U.S. recorded music sales, at least in 2019, have been stagnant – the release points out.
The report goes on to say that growth for H1 2021 would have been 36.6 percent higher, at $432.2 million, had it not been for the sudden 50 percent yoy rise in year-to-date digital music revenue. A full 3 percent of this, or $16.8 million, is due to the Filing and Public Disclosure of Amendment No. 2018-19, which caused a spike in digital sales for a handful of U.S. studio albums – four of which, collectively, included No. 1 records – notably Universal Music Group’s Roman Reigns’ “Baywatch” soundtrack, from the soundtrack’s $2.1 million to No. 4, with $4.1 million in yoy growth, Post Malone’s “Beerbongs and Bentleys,” from No. 6 to No. 2, with $4.