Germany’s record business revenues topped $2 billion (on a retail basis) for the second year in a row in 2021.
That’s according to new figures published by German Music Industry Association (BVMI) today (March 3).
BVMI reports that the German market’s revenues from physical music sales and streaming generated a total of 1.96 billion euros (approximately $2.2bn), an increase of 10% year-over-year compared to 2020.
The country’s revenues from physical music sales and and streaming reached €1.79 billion (approx $2.02bn) in 2020, an increase of 9% YoY.
The largest share (76.4%) of the market’s recorded music revenues came from digital music, which generated revenues of €1.5 billion ($1.6bn) in 2021, up 17.7% versus the prior year, when digital music generated €1.3 billion ($1.44bn).
BVMI notes that digital will soon account for four-fifths of the recorded music market in Germany, which it adds “has long been a reality in the Scandinavian countries in particular”.
Within digital, audio streaming grew 18.6% YoY, representing slower growth than in 2020 when revenues from the format grew 24.6%.
Audio streaming enjoyed a 68.3% share of total revenues in 2021, which means that revenues generated by the likes of Spotify, Apple Music reached €1.33 billion ($1.47bn), accounting for a larger slice of the market compared to the previous year, when audio streaming made up 63.4% of total recorded music revenues.
Germany generated 165 billion music streams in 2021, which was almost a fifth more than in 2020.
Elsewhere, revenues from physical music, including sales of vinyl and CD accounted for 23.6%, or €462 million ($512m) of total recorded music revenues.
Sales of CDs fell 16.7% YoY in 2021, but it was still the second biggest selling format in the market with a share of 16.3% of total revenues.
Vinyl sales, meanwhile, grew 20.1%, with vinyl’s share of the recorded music market reaching 6% in Germany in 2021.
“The German music industry is experiencing significant growth for the third consecutive year; with a total turnover of €1.96 billion in 2021, revenues are approaching the level of 2002 again.”
Dr. Florian Drücke, BVMI
Dr. Florian Drücke, Chairman & CEO of the BVMI, said: “10% growth certifies that the music industry, the digital pioneer, which has been heading towards the valley for so many years and sometimes at breakneck speed, has recognised digital disruption as an opportunity and has drawn the right strategic conclusions.
Added Drücke: “This is shown in particular by the successful integration of music streaming into the format portfolio. The German music industry is experiencing significant growth for the third consecutive year; with a total turnover of €1.96 billion in 2021, revenues are approaching the level of 2002 again.
“Nevertheless, this positive development should not distract from the fact that the hardship in the live-sector remains immense.
“Against this backdrop, we urgently hope for the artists and our colleagues in the industry to be able to plan better, which now seems to be beginning to happen.”
“The strong and stable growth once again underlines the uninterrupted success of our content.”
Frank Briegmann, Chairman & CEO Universal Music Central Europe and Deutsche Grammophon, added: “The strong and stable growth once again underlines the uninterrupted success of our content.
“Above all, however, the figures prove the immense potential that still lies ahead of us. Because despite the ongoing large increases in the streaming segment, territories such as Scandinavia, the UK or the USA still have more than twice the market penetration in terms of paying premium subscribers.
“If, at the same time, we inspire new target groups for streaming, expand the distribution channels and, in addition, maintain the relative strength in physical formats through product innovations and high-quality fan editions, then we look forward to a further growing German music market together with our artists and partners.”
“Especially against the backdrop of the strains caused by the pandemic, this balance for 2021 is very good news for all artists and for the entire music industry.”
Patrick Mushatsi-Kareba, Sony Music GSA
Patrick Mushatsi-Kareba, CEO Sony Music GSA, said: “Especially against the backdrop of the strains caused by the pandemic, this balance for 2021 is very good news for all artists and for the entire music industry.
“Together, we want to continue to invest in emerging and established artists, providing them with the best possible service and partnership to meet the challenges of the streaming age.
“At the same time, we hope for a prosperous return of the live business, both for our artists and our many partners in the live industry.”
“The crisis has made it clear how important and beneficial music is for all of us.”
Doreen Schimk & Fabian Drebes, Warner Music Central Europe
Doreen Schimk & Fabian Drebes, Co-Presidents Warner Music Central Europe, said: “The crisis has made it clear how important and beneficial music is for all of us. However, we have successively expanded our market share even before and have grown in all areas, last year in the physical area even against the market trend.c
“The outstanding performances of our artists such as Ed Sheeran (most-streamed international artist in Germany), Katja Krasavice (most No.1 hits of the year) and Udo Lindenberg are highlight building blocks of our growth course.
“In 2021, we achieved the best business year in our history with our artists, partners and our team. We therefore look forward to the further development of the market with optimism and curiosity”.
“A double-digit growth of the overall market at the end of the year for the first time in decades is a truly joyful result in an emotionally extremely difficult time.”
Konrad von Löhneysen, Embassy of Music
Konrad von Löhneysen, Managing Director of Embassy of Music and spokesman for the extraordinary members of the BVMI board, said: “A double-digit growth of the overall market at the end of the year for the first time in decades is a truly joyful result in an emotionally extremely difficult time.
“We must, especially because of the currently strong economic position of our part of the industry, continue to work on bringing all stakeholders in the field of “recorded music” along with us, i.e., creating opportunities, platforms, etc. for national (up-and-coming) artists with our partners in the media and in the trade and, furthermore, having an open dialogue about remuneration in streaming; this also in order to clear up the sometimes dangerous half-knowledge, especially among the media.”Music Business Worldwide