Frontera Group
Luminate’s Latin Music Report also found that Latin listeners are turning to Whatsapp to communicate and discover new music trends.
US Latin music revenue is growing at an unprecedented rate, with consumption up 15% over the first half of 2022. Not only that, but Spanish is now the second most popular music language in the US, accounting for 23% of listeners.
The milestones follow a breakthrough year in Latin music revenue in 2022, which saw the genre hit a record $1.1 billion. The genre is poised for another record year in 2023, with the RIAA reporting a new annual high of $627 million.
Luminate’s new data also shows that the growth was driven by buzzy newcomers from subgenres including the regional Mexican, fast-growing landscape, which recorded 56% growth this year alone. Spanish hitmakers such as Shakira and Karol G have already tapped into the market, which has amassed a total of 14.3 billion on-demand streams in the first 34 weeks of 2023.
The Luminate report also made a surprising discovery: 73% of Latin American listeners use WhatsApp to discover new music and communicate, 265% more than the general population. This fact seems to be confirmed on a commercial scale, as streaming giant Bad Bunny’s latest single was announced on the platform’s newly created “channels” features.
Latin music is also ranked as the fifth largest major genre in the US, while R&B ranks first, followed by hip-hop, pop, rock and country. Also worth noting: Latin music listeners spend 120% more per month on music activities than other listeners, and 58% of Latin music fans report spending more than half of their monthly music spending on live events.
However, the main driver of this growth, which accounts for 98% of Latin music revenue, is streaming. Paid subscriptions accounted for a total of $431 million, accounting for more than two-thirds of total revenue. Additional revenue from digital and personal radio services (Pandora, SiriusXM and internet radio) rose 13% to $36 million—up significantly from a 5% decline in 2022—and accounted for 6% of total Latin music revenue. Continued downloads ($4.8 million) and physical formats ($4.7 million) each accounted for less than 1% of total revenue, down 21% and 37% in the first half of 2023, respectively.
“US Latin music revenues reached a record high in 2022, and growth continued from mid-year through 2023. This was fueled by both the vitality of classic hits and new chart-topping releases that influenced wider culture and society. said Rafael Fernandez Jr., RIAA Senior Vice President of National Public Policy and Industry Relations.