Germany generated €903.8 million (approximately $1.094 billion) on a retail basis in the first six months of this year from physical music sales and streaming, an increase of 12.4% year-over-year.
That’s according to new results published today (August 10) by the German Music Industry Association (BVMI) in its H1 2021 report.
The publication of BVMI’s H1 report follows the news in March that the country’s recorded music revenues grew 9% year-on-year to €1.79 billion (approximately $2.02bn) in 2020 on a retail basis, in spite of the pandemic.
Breaking down Germany’s total H1 revenue figure reveals that audio streaming revenue from the likes of Spotify, Apple Music etc. was the country’s primary growth driver, increasing 19.9% year-over-year in the first six months of 2021.
Audio streaming’s share of total revenue is now 70.6%, with the format only having only overtaken CDs in Germany in terms of revenue for the first time in H1 2018.
Elsewhere in the market, downloads contributed just 3.3% to total revenues, after a decline of 25.9% in H1.
Digital’s (streaming and downloads) overall share in Germany now stands at 78.6% of the market.
Meanwhile, in the physical sector, CD revenues declined 16.4% YoY, while vinyl sales grew 49.5% in the first six months of 2021.
Vinyl’s growth in H1 takes the format to a share of almost 6% (5.9 %) of the total market. The CD stills accounts for 14.5% of the market.
Overall, the physical business, including vinyl and CDs, currently still generates around a fifth of total sales (21.4 %) in Germany.
“The half-year figures once again demonstrate the innovative strength of the industry and the strategic foresight of our members, who, as partners of the artists, are continuously expanding the digital value-added possibilities.”
Dr. Florian Drücke, BVMI
Dr. Florian Drücke, BVMI Chairman and CEO, said: “In the first half of 2021, the industry’s turnover grew by a significant 12.4%. The digitally generated share rose to almost 80 percent, which represents a new peak.
“The fact that in the analog segment vinyl has even grown by around 50% in the last six months shows a special facet of our market.
“The half- year figures once again demonstrate the innovative strength of the industry and the strategic foresight of our members, who, as partners of the artists, are continuously expanding the digital value-added possibilities.
“The dramatic impact of the Corona pandemic on the entire live sector once again illustrates the importance of digital business to many, but also shows how deeply affected certain sub-sectors of the music industry are currently by the pandemic.”
“This continued revenue growth benefits the broader music ecosystem.”
Frank Briegmann, Chairman & CEO of Universal Music Central Europe and Deutsche Grammophon, said: “This continued revenue growth benefits the broader music ecosystem – everyone from songwriters and publishers to artists and their labels and beyond.
“It is testament both to the fact that fans love the great music artists are creating as well as both the digital and physical offerings that are available.
“At a time when so many in the music community still bear the brunt of the pandemic’s effects on live music, this shared success enables us to both support established artists and invest more in new talents, which is key to a successful future for our whole industry as well as more cultural diversity.”
Music Business Worldwide