Latin Music Earnings Reach Historic High of $1.4 Billion in the U.S., Fueled by Streaming

Latin music has continued its remarkable ascent in the U.S. in 2024, achieving an unprecedented $1.4 billion in revenue, as reported by the Recording Industry Association of America (RIAA). When adjusted for inflation, this achievement signifies an 18% increase from the genre’s last peak in 2005 and highlights the third consecutive year of exceeding $1 billion.

Streaming has remained the cornerstone of Latin music’s thriving success, constituting an astounding 98% of total revenue in 2024. Paid subscription services made up over two-thirds of those earnings, witnessing a 6% year-over-year growth to reach $967 million. Concurrently, ad-supported on-demand streaming services such as YouTube, Vevo, and the free version of Spotify generated $354 million, almost 25% of the genre’s total worth — a significant share compared to the overall market’s 10% in this segment, according to the annual report.

“I’m encouraged by the ongoing explosive popularity of Latin music across the U.S. as artists and labels discover new methods to engage with fans,” states Rafael Fernandez Jr., RIAA’s svp of state public policy & Latin music, in a press announcement. “With streaming representing 98% of Latin revenues, we can observe how the Latin music community’s adoption of innovation enables both traditional artists and new generations to connect with audiences like never before — overcoming language and access barriers to more boldly influence America’s music landscape each year.”

Driving this supremacy is a roster of global megastars boosting engagement across platforms. Based on Billboard’s year-end Top Latin Artists chart of 2024, Bad Bunny secured the No. 1 position for the sixth straight year. At the same time, Fuerza Regida climbed to the second spot following a string of album and EP launches that resonated with audiences throughout the U.S. Karol G maintained her status as the sole female representative in the top 10, at No. 4, while Peso Pluma landed at No. 3 — artists pioneering new paths and fortifying the cultural and commercial expansion of Latin music.

While streaming reigns supreme, physical formats have also seen an unexpected revival, with revenues rising 35% from 2022. Although they still constitute only 1% of total U.S. Latin music income, this trend indicates potential to cater to collectors and superfans through vinyl and other physical releases.

“There are still numerous prospects to challenge the limits of innovation, engaging superfans, broadening paid streaming, and reintroducing vinyl nostalgia to this specific audience,” remarks Matthew Bass, RIAA’s vp of research and gold & platinum operations, in a press announcement. “After nearly a decade of upward trends, Latin music continues to thrive across the U.S. and is just getting started!”

As per IFPI’s latest Global Music Report, Latin America has enjoyed a 15-year growth streak, establishing itself as one of the fastest-growing regions globally. For the first time, Mexico has broken into the top 10 global music markets, overtaking Australia for the No. 10 position. Meanwhile, Brazil remains steady at No. 9, marking 2024 as the first year that two Latin American nations have featured in IFPI’s top 10 rankings, which are determined by recorded music revenue.

• Source: NEWHD MEDIA