Germany’s record business revenues surpassed $2 billion (on a retail basis) for the second straight year in 2021.
This is the result of new figures published by the Association of the German Music Industry (BVMI) today (March 3).
The BVMI reports that the revenues of the German market from physical music sales and streaming total 1.96 billion euros (approx.
The country’s revenue from physical music sales and streaming hit €1.79 billion (about US$2.02 billion) in 2020, up 9% year-on-year.
The largest share (76.4%) of the market’s pre-recorded music revenues came from digital music, which generated 1.5 billion euros ($1.6 billion) in revenues in 2021, up 17.7 percent from in last year, when digital music generated €1.3 billion ($1.44 billion).
The 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, particularly in the Scandinavian countries”.
In the digital space, streaming audio grew 18.6% year over year, representing slower growth than in 2020, when revenue from the format grew 24.6%.
Audio streaming accounted for 68.3% of total revenue in 2021, meaning revenue from companies like Spotify, apple music reached €1.33 billion ($1.47 billion), accounting for a larger market share compared to last year when streaming audio accounted for 63.4% of total recorded revenue.
Germany generated 165 billion music streams in 2021, almost a fifth more than in 2020.
Elsewhere, physical music revenues, including vinyl and CD sales, accounted for 23.6% or €462 million (US$512 million) of total recorded revenues.
CD sales fell 16.7% year over year in 2021, but was still the second-largest sales format on the market, accounting for 16.3% of total sales.
Vinyl sales, meanwhile, grew by 20.1%, with vinyl’s share of the recorded music market in Germany expected to reach 6% in 2021.
“The German music industry is experiencing significant growth for the third year in a row; With a total turnover of 1.96 billion euros in 2021, turnover is again approaching the level of 2002.”
dr Florian Drucke, BVMI
dr Florian Drücke, Chairman & CEO of the BVMI, said: “10% growth certifies the music industry, the digital pioneer, which has been heading towards the valley for so many years and sometimes at breakneck speed, which has recognized digital disruption as an opportunity and has the right strategic ones conclusions drawn.
Drücke adds: “This is particularly evident in the successful integration of music streaming into the format portfolio. The German music industry recorded significant growth for the third year in a row; With a total turnover of 1.96 billion euros in 2021, turnover is again approaching the level of 2002.
“Nevertheless, this positive development must not hide the fact that the need in the live area is still immense.
“With that in mind, we strongly hope artists and our industry peers can better plan for what appears to be emerging.”
“The strong and stable growth once again underlines the unbroken success of our content.”
Frank Briegmann, Chairman & CEO of Universal Music Central Europe and Deutsche Grammophon, added: “The strong and stable growth once again underscores the continued success of our content.
“Above all, the figures show the immense potential that still lies ahead of us. Because despite the continued large growth in the streaming segment, territories such as Scandinavia, Great Britain or the USA still have more than twice the market penetration in terms of paying premium subscribers.
“If we inspire new target groups for streaming, expand the sales channels and also maintain the relative strength in physical formats through product innovations and high-quality fan editions, then we look forward to further growth in the German music market together with our artists and partners.”
“Especially against the background of the burdens caused by the pandemic, this balance sheet 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 of Sony Music GSA, said: “Especially against the background of the burdens caused by the pandemic, this record for 2021 is very good news for all artists and for the entire music industry.
“Together we want to continue investing in emerging and established artists and offer them the best possible service and partnership to meet the challenges of the streaming age.
“At the same time, we hope for a successful return of the live business, both for our artists and for 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 had already successively expanded our market share 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 financial 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.”
“Double-digit growth of the overall market at the end of the year for the first time in decades is a really pleasing result in an emotionally extremely difficult time.”
Konrad von Loehneysen, music message
Konrad von Löhneysen, Managing Director of the Embassy of Music and spokesman for the extraordinary members of the BVMI board, said: “For the first time in decades, double-digit growth in the overall market at the end of the year is a really gratifying result in an emotionally extremely difficult time.
“Because of the currently strong economic position of our industry branch, we must continue to work on taking all players in the field of “recorded music” with us, i.e. opportunities, platforms etc. for national (upcoming) artists with our partners in the media and in retail and beyond maintain an open dialogue about streaming compensation; this also in order to clear up what is sometimes dangerous half-knowledge, especially in the media.”music business worldwide
https://www.musicbusinessworldwide.com/germanys-record-business-generated-2bn-for-second-straight-year-in-202112/ Germany’s record business generated $2 billion in 2021 for the second year in a row