Latin Music Revenue Hits $1.4B in the U.S., Outpacing Overall Growth

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For the third year in a row, Latin music’s earnings exceeded $1 billion in the United States, reaching an unprecedented peak of $1.4 billion in 2023 as confirmed by the RIAA in its annual report published on Tuesday.

Last year, Latin’s growth decreased significantly, dropping from a 16% increase reported the previous year. This is consistent with the general trend in the US market, as streaming revenue has plateaued due to market saturation since the initial boom of streaming services. According to the RIAA’s annual report, overall U.S. market revenues expanded by only 3%, a significant decrease from the 8% growth seen the year before.

Once again, it has been verified that for the ninth consecutive year, Latin growth is outperforming the overall U.S. market. This consistent upward trend can be attributed to the continued rise of stars such as Bad Bunny and Peso Pluma in the Latin music industry. Streaming continues to dominate the market, accounting for an impressive 98% of its revenue in the previous year, according to the RIAA. The growth of paid subscriptions reached approximately $967 million last year, marking a 6% increase from the previous year.

Rafael Fernandez Jr., RIAA’s senior vice president for state public policy and Latin music, expressed his delight in the persistent growth of the love for Latin music in the U.S. as artists and record labels find innovative methods to engage with their audience. He added that the dominance of streaming platforms, accounting for 98% of Latin revenues, demonstrates how the Latin music community’s openness to innovation allows both established artists and new talents to reach fans in unprecedented ways, thereby overcoming language and access barriers and influencing America’s musical landscape more powerfully every year.

In the wider U.S., digital download sales are falling dramatically, decreasing by approximately 24% last year. On the flip side, physical sales revenue nearly doubled, climbing from $8.5 million to $16.6 million according to a report. Despite making up just around 1% of Latin’s total revenue, this increase in physical sales is significant. Matthew Bass, Vice President of Research and Gold & Platinum Operations at the RIAA, commented that there could still be an opportunity for introducing vinyl nostalgia to this market in Latin America.

For almost ten years, Latin music has been steadily increasing in popularity in the United States and it seems to be just the beginning of its ascent,” Bass commented.

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2025-04-01 18:24