After the release of Despacito last year, the U.S. Latin music business continued to grow in H1/2018, driven majorly by paid streaming formats.
According to The Recording Industry Association of America (RIAA) mid-year 2018 Latin music revenue report, revenues grew 15%, totaling $135 million while streaming represented a remarkable 91% of the entire market.
Mitch Glazier, President, RIAA said,
“The Latin music market continued its remarkable transformation in the first half of 2018. Latin music has become a worldwide phenomenon, driven by a diverse streaming market and Latin labels making smart investments to support their artists’ global ambitions. The energy and excitement around Latin music is again palpable, and that’s welcome news for a genre that had weathered an especially challenging decade.”
Latin music revenues from SoundExchange distributions and royalties from similar directly licensed services were down 28% to $25 million, but still contributed 20% of Latin streaming revenues.
“With a greater dependence on ad-supported revenue sources than other genres, it has never been more important for Latin music to receive fair value across all formats”, Glazier added
For Latin music, revenues from ad-supported streaming sources made up a higher percentage of the total, while sales such as digital downloads and physical product recorded fewer numbers compared to the overall U.S. market.