Washington, DC (October 14, 2020)—According to the RIAA’s mid-year report on the Latin music market, revenues in the U.S. enjoyed a fourth straight year of double-digit growth, increasing 18.6% to $296.1 million at retail value.
Latin music also continued to grow its share of overall U.S. music revenues to 5.2%, the report also found. Total streaming revenues grew 20.3% to $285.2 million, accounting for 96% of the Latin music market. There were significant differences in results between Q1 and Q2 of 2020, as retail store closures, tour cancellations, and other impacts of Covid-19 affected the music industry in many significant ways, the report states.
“These are difficult times for the country and many parts of the music industry,” said Mitch Glazier, chairman and CEO, RIAA. “The investment music creators have made in streaming are helping to sustain the industry, but the impacts of COVID-19 are felt through closed local music venues and silent theaters and concert halls. The RIAA and its members will continue to work with the entire music community to help artists, musicians and music creators gain access to necessary aid and benefits so they can continue to make the music fans love.”
Similar to the overall U.S. market, a 24% increase in the number of paid streaming music subscriptions to 72 million was the biggest driver of growth for Latin music. Revenues from paid subscriptions grew 27.6% to $196.2 million, accounting for more than two-thirds of the Latin music streaming market in 1H 2020.
Revenues from ad-supported on-demand streams — a category that includes services like YouTube, Vevo and the free version of Spotify — grew 10.9% year-over-year to $59.1 million in 1H 2020. This category was significantly impacted by broader advertising declines due to Covid-19. Revenues from the category grew at similar to historical rates in Q1 2020, but for Q2 declined versus the prior year. Latin music revenues continued to over-index on ad-supported services relative to the overall market, accounting for 19.9% of the Latin market compared with 7.5% for the overall market.
Revenue from digital and customized radio services were down 0.6% to $29.9M. Physical and digital unit-based formats continued to shrink in sales and share of the market in 1H 2020.
Digital download singles and albums declined 19.9% by value in 1H 2020, totaling $6.8M. Revenues from physical shipments of Latin music products fell 61.5% to $0.8 million, with a significantly steeper decline in Q2 than Q1 2020. Combined, sales of these unit-based formats accounted for just 2.7% of the market.
RIAA • www.riaa.com