Anyone who's been paying attention to the music industry lately has likely heard of South America's cultural and artistic impact.
Over the past few decades, this region has seen an incredible evolution in its musical markets. In 2021 alone, streaming comprised 85.9% of the market, one of the highest proportions in any region.
The South American music market is experiencing a rich cultural mix of sounds and genres, but its place within our global ecosystem adds to its depth--economically, socially, and artfully.
In this post, we’ll dive into an overview of how and why major music markets drive growth and innovation within this unique continent’s music industry – from empowering emerging artists with fresh sounds and cutting-edge technology to exploring new genres that have contributed significantly to Latinx influence across all genres worldwide.
So join us for a journey through one of today’s most vibrant music scenes.
The Evolution Of Latin Music
The Latin music industry is evolving at an incredibly rapid rate. From its African core influences to being reshaped by economic and political conditions, music in Latin America has seen quite a journey over the years. Today, each country boasts many unique music genres that encompass distinct sounds. Latin music is known to have a vibrant and energetic force that helps connect and bring people together.
Its addictive rhythms and colorful scenes make it stand out as one of the most identifiable musical cultures in the world. Having influenced countless genres and garnered admiration from musicians across all styles, it's no surprise that the Latin music market saw a 31.2% expansion in recorded music revenues in 2021, ahead of the United States.
This makes it the second fastest-growing region for music worldwide.
Streaming In The Latin Music Market
There's no question. Streaming has changed the way people consume music. The world has been turning up the volume in recent years. According to recent reports the global music market grew 18.5% in 2021, largely due to increased paid streaming subscriptions. This is a remarkable jump, as other entertainment areas - such as movie ticket sales and physical music sales - experienced significantly smaller increases.
Music streaming has been a game-changer for artists worldwide, giving them access to bigger audiences than ever before and providing valuable data on how their music is heard. By the end of 2021, an astonishing 523 million people had adopted paid subscription accounts.
Latin music was a financial juggernaut in 2021, generating an immense $886.1 million in the US retail market. That was up by more than 34% from the previous year. Fueled by Latin Billboard superstars like Bad Bunny, Becky G, and Anitta, streaming revenues in the US skyrocketed.
Because of its incredible growth, Latin music now makes up 6.6% of US music revenues. Compared to 3.92% in 2017, it's a mind-boggling jump. Put into perspective, that means Latin music brought in one dollar for every fourteen dollars earned by the US streaming record industry.
In a post-pandemic world, streaming will likely remain a pillar of the global music industry for many years.
Paid Streaming Services
With paid streaming subscriptions leading the charge, over two-thirds of all US Latin music revenue was driven by these platforms.
This revenue came from people who subscribed to full Premium music streaming services such as Spotify and Apple Music and those who chose the limited tier plans with more restricted catalogs.
Free Streaming Services
Latin music was also successful with ad-supported streaming services in the US, accounting for 22% of total revenues in this genre - nearly double the 11% average across all markets.
Business Operations In The South American Music Market
One of the reasons South America has seen incredible growth in recent years is because of new technologies, allowing business operations to expand in ways that weren't possible even ten years ago.
As mentioned, some of the most effective ways to reach audiences in the region are streaming services such as Spotify and Apple Music, making it easy for musicians to get their music in front of new fans.
Social media giants like Instagram, TikTok, and YouTube have become invaluable tools for artists looking to promote their music and interact with potential fans.
New Opportunities On The Horizon
Latin artists are reaching new fans with their music in more diverse ways than ever before. Those who partner up with record companies open themselves up to benefit from supportive professionals who are experts at helping them thrive and grow for years on end.
Latin music is taking exciting leaps into the digital horizon – and record companies are investing in new technologies to create captivating ways for artists and fans to connect.
From virtual realms, like the Metaverse, to music integrated within gaming experiences - these advancements offer an evolving array of musical experiences that break out from traditional formats.
Music In Brazil
ABMI is bringing Brazil's independent music scene to a whole new level. This forward-thinking association of record companies boasts over 100 labels as members, helping to create vibrant and diverse opportunities for artists in the country.
Music in Brazil has officially become the leader of the Latin music industry. By 2025, the market volume is expected to hit a whopping $781 million. The growth rate throughout 2021 - 2025 looks to be an impressive 10.33%.
Spotify is responsible for almost 50% of all recorded music revenues in this region, and video marketing is huge, with over 83 million viewers. 79 percent of people watched YouTube video clips in 2019 alone. The Brazilian rate was well above the global average, at 44%. And regarding weekly users, 65% opted for YouTube compared with 30% choosing Spotify.
Again that's much higher than globally, where only 46% tune into YouTube and 17% opt-in to using Spotify.
South American Music Markets: In Closing
South America has seen a surge in the music industry in recent years, and it doesn't appear to be slowing down anytime soon.
With new streaming services and platforms popping up, it can be difficult to keep track of everything - but that's where we come in.
At Reprtoir, we provide software designed to help you manage your music rights, revenues, and operations, so you can stay focused on making great art.
If you're looking for a way to simplify and streamline your business, give us a try. We'll make sure you have one less thing to worry about.