Streaming makes up 93% of US Latin music revenues in 2018 according to the RIAA, the US recording industry association. Latin music’s transformation from a physical-based business to a streaming-driven one is even faster than the overall US music market’s turnaround. Revenues from streaming now comprise 93% of the total Latin market, with a paid subscription service increase of 50% fuelling most of the growth.
The US Latin music business grew 18% in 2018 to $413 million. Streaming formats made up a remarkable 93% of total Latin music revenues, compared with 75% for the overall US music market. Latin music accounted for 4.2% of the total $9.8 billion US music business, a slight increase versus 4.0% in 2017.
Paid subscriptions grew 48% year on year to $239 million, making it the biggest driver of growth for Latin music and 58% of the total US Latin music market. Revenues from on-demand ad-supported services grew at 34% to $91 million. This category made up 24% of total Latin music revenues, a significantly larger proportion than the 8% it contributed to the overall US music market.
While streaming service revenues in aggregate grew 26% annually to $383 million, physical and digital unit-based sales of Latin music continued to decline. Digital download sales fell 23% to $20 million, and revenues from physical product was only $6 million, down 63% versus 2017. Combined, they only accounted for 6% of US Latin music revenues, their lowest level to date.
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