With revenues of $510m in H1, Latin Music remains to be heading in the right direction to generate $1bn {dollars} within the US this 12 months

MBW’s Stat Of The Week is a sequence wherein we spotlight a single information level that deserves the eye of the worldwide music business. Stat Of the Week is supported by Cinq Music Group, a technology-driven report label, distribution, and rights administration firm.

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In April, MBW predicted that the recorded music marketplace for Latin artists in the US will generate over a billion {dollars} in income throughout the 12 months of this 12 months.

Latin music generated $886.1 million on a retail foundation (cash spent on streaming subscriptions, in addition to bodily and digital music), within the US in FY 2021, which was up by 35.4% versus the prior 12 months.

As reported in April, this annual income determine will now solely need to rise by an additional 12.9% (+$114m) in 2022 to hit 1 billion {dollars}.

In line with new mid-year information launched in a report by the RIAA, on a retail foundation, Latin Music could be very a lot heading in the right direction hit $1 billion in revenues in the US this 12 months, after rising 23% within the first half of 2022, to succeed in $510 million. 

Not solely is Latin Music nonetheless heading in the right direction to hit $1bn in revenues within the US by the top of the 12 months, however its development can be outpacing that of the broader US recorded music market.

US recorded music revenues within the first half of 2022 rose 9% YoY to $7.7 billion in H1 2022, whereas Latin Music grew 23% YoY in H1 2022.

Consequently, Latin Music additionally grew its share of recorded music revenues within the US to a report excessive of 6.6% of complete income.

Highlighting the tempo of this development, in financial phrases, Latin music revenues grew $97 million YoY in H1 2022, which is just about flat versus the $99 million YoY development seen in H1 2021 (see beneath).

As MBW reported on the finish of September, development of general US recorded music revenues solely slowed considerably in H1 2021.

On a retail foundation, recorded music revenues within the US grew $700 million YoY to $7.7 billion within the first half of this 12 months (up from $7 billion in H1 2021).

Again in H1 2021, on a retail foundation, US recorded music revenues grew by $1.4 billion YoY to $7 billion.

In different phrases, within the US, general mid-year recorded music development seen in H1 2022 was lower in half in comparison with H1 2021.

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Streaming codecs

Boosted by international streaming stars equivalent to Unhealthy Bunny, Rauw Alejandro, J Balvin and Becky G, income from streaming codecs was the first driver behind Latin Music’s development in H1 2022.

In line with the brand new RIAA information, Latin music revenues generated from streaming (throughout promoting, video & audio streams, in addition to paid and ad-supported tiers) grew 24% YoY in H1 and comprised 97% of complete Latin revenues, or $494.7 million.

Paid music subscriptions accounted for the lion’s share of Latin revenues in H1, rising 25% YoY to succeed in $350 million. Music subscriptions accounted for 71% of Latin music streaming revenues in H1 2022, and 69% of general Latin revenues.

Advert-supported on-demand streams of Latin Music (from companies like YouTube, Vevo, and the free model of Spotify) grew 39% to $112 million in H1 202.

The RIAA studies that this ad-supported class “considerably over-indexes in share” at 22% of complete Latin music revenues, versus 11% of general music revenues.

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In the meantime, bodily codecs of Latin music made up lower than 2% of revenues in H1.

Income generated from Vinyl albums of Latin music greater than doubled (off a small base) to $6 million in 1H 2022, whereas CDs grew 21% to $1.4 million.

“Latin music continues to flourish with 23% development over the primary half of 2022, outpacing general recorded music revenues and reaching an all-time excessive in share.”

Michele Ballantyn, RIAA

Commenting on the brand new information, RIAA Chief Working Officer Michele Ballantyne stated: “Latin music continues to flourish with 23% development over the primary half of 2022, outpacing general recorded music revenues and reaching an all-time excessive in share.

“Unhealthy Bunny’s Un Verano Sin Ti has been essentially the most listened to album launched this 12 months throughout all genres – that’s the energy of Latin music to succeed in and join with followers universally!

“The dynamic inventive partnerships between Latin artists and their label groups drive unbelievable outcomes 12 months after 12 months.”

RIAA Senior Vice President, Analysis and Economics, Josh Friedlander added: “U.S. Latin income rose to greater than half a billion {dollars} throughout the first half of 2022.

“As soon as once more, streaming stays king within the Latin section of the U.S. market, driving a outstanding 97% of complete revenues.

“Each of the most important streaming classes – paid subscriptions and on-demand ad-supported streaming – in addition to CDs and the rejuvenated vinyl format, grew for Latin music over this era.”

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Cinq Music Group’s repertoire has received Grammy awards, dozens of Gold and Platinum RIAA certifications, and quite a few No.1 chart positions on a wide range of Billboard charts. Its repertoire consists of heavyweights equivalent to Unhealthy Bunny, Janet Jackson, Daddy Yankee, T.I., Sean Kingston, Anuel, and lots of extra.

 Music Enterprise Worldwide