The German music industry grew by 7.9% in the first half of 2019 according to the German Music Industry Association (BVMI), marking the country’s music industry’s highest growth rate since 1993.
In the first six months of the year (January to the end of June), the country’s music industry generated a total of €783.21 million from audio streams and the sale of CDs, downloads and vinyl,
up 7.9% on revenues generated in H1 2018 (€725.9m).
As would be expected, the industry’s growth in H1 was driven by audio streaming, which grew by 27.7%.
Downloads, on the other hand, declined significantly (-16.3%).
Overall, the digital business grew by 21.1% in the first six months of the year to reach a 66% share of total revenues compared to 56.7% in H1 2018.
Meanwhile, CD revenues declined 11.7 %, while vinyl grew 7.4% compared to the same period last year.
The physical business declined 11% and accounted for 34% of total revenues.
At 56.4%, audio streaming has the largest share of industry revenues, followed by CDs at 28.2%, downloads (6.6 %) and vinyl (4.4 %).
Streaming revenue overtook CDs in Germany for the first time in H1 2018, ending the CD’s 30 years of market dominance.
“Streaming is now also having a leverage effect in Germany. With a digital share of two thirds, the industry shows how far it already is on the way to digital turnaround.”
Dr. Florian Drücke, BVMI
Dr. Florian Drücke, BVMI Chairman & CEO said: “Streaming is now also having a leverage effect in Germany. With a digital share of two thirds, the industry shows how far it already is on the way to digital turnaround.
“The reasons for the dynamic growth rates in (legal) audio streaming are, above all, attractive offers, but also the prevalence of smartphones and flat rates.
“Fortunately, we are seeing a growing understanding that the rights of creatives and their partners must be protected in the digital environment, and that online platforms must also be held responsible in this context.”
Added Drücke: “Reliable rules in the market remain essential with regards to the digital licensing business.
“When implementing the European copyright reform, it is therefore important that the German legislator enters into a factual discussion after the heated debate that had accompanied the adoption of the directive.”Music Business Worldwide