Recorded music revenues in Germany, the world’s fourth largest recorded music market, grew 6.6% YoY in the first half of 2023.
That’s according to the market’s music industry association BVMI, which revealed this week that in H1, Germany generated €1.056 billion (approx. $1.18bn), on a retail basis, from music streaming as well as from the sales of CDs, vinyl LPs and downloads.
Digging deeper into Germany’s latest results for the first six months of 2023, BVMI reports that physical sales fell 0.8% YoY and accounted for 18% of the market.
CD sales specifically fell 4.1% YoY and accounted for 11.2% of total revenues generated in the market in H1 (see below). Vinyl sales, which now account for 6% of Germany’s recorded music market grew 6.3% YoY in H1.
Interestingly, in spite of the ongoing trend of physical sales decline in the market, sales of DVDs and Blu-rays increased slightly, 0.9%.
Combined sales of CDs, vinyl, DVDs and physical singles currently generate just under one-fifth (18%) of total sales in the German market.
Meanwhile, audio streaming saw continued growth in Germany in H1, with revenues generated by the format rising by 9.7% YoY.
Audio streaming now accounts for 75.7% of Germany’s total recorded music market.
The H1 2023 results come five months after BVMI revealed that the market’s recorded music revenues, generated from music streaming, as well as from the sales of CDs, vinyl LPs and downloads, reached USD $2.17 billion (on a retail basis) in 2022 (up 6.1%).
“Music sales in Germany continue to develop positively despite the economically complex overall situation.”
Dr Florian Drücke, BVMI
Dr Florian Drücke, Chairman & CEO of the BVMI: “Music sales in Germany continue to develop positively despite the economically complex overall situation.
“For many years now, streaming has been the well-known driver that has significantly increased the market as a whole, the famous pie, ultimately benefitting everyone involved, companies and artists alike. Unfortunately, this circumstance is ignored in the current unbalanced debate about the streaming market.
“Just as the entrepreneurial perspective is all too often left out, which in recent years has had to adapt again and again to changing market conditions and new players.”
Drücke added: “Today, the way into the music market is literally open to everyone with a functioning internet access; artists are free to choose whether and if so, which partnership and services they want to use; accordingly, the cooperations between labels and artists are modular and highly individual in the case of a collaboration. At the same time, it is our member companies who pay the advances, which in the vast majority of cases are not being recouped. This high entrepreneurial risk is also part of dealing with our industry’s realities and the roles of the respective partners in the market.”Music Business Worldwide