Photo Credit: BVMI
BVMI revealed that the German music industry generated €2.07 billion in 2022. This is not the first time the German music industry has hit the €2 billion mark — though it’s been a while.
Back in 2002, the industry made €2.21 billion, but two decades down the line, the breakdown of revenue source is completely different. According to a just-published BVMI (Bundesverband Musikindustrie) report, the €2.07 billion includes proceeds from streaming, downloads, and sales of CDs and vinyl LPs. However, 80.3% of this revenue is credited to streaming and downloading, with a mere 19.7% generated through physical music sales (mostly CDs and vinyl LPs).
BVMI is a globally recognized music organization representing over 85% of music consumption in Germany.
Germany is the world’s third-largest music market, and the €2.07 billion earnings represent a 6.1% growth in its recorded music market.
CEO of the BVMI, Dr. Florian Drücke, spoke about the streaming segment growth, saying, “An increase of 6.1% means growth for the fourth year in a row. The fact that the industry has passed the €2-billion mark for the first time in two decades is good news of far more than symbolic value. Looking at streaming, it will be exciting to see how the price hikes from the early providers we’ve seen recently will now play out in the broader market and also how short form videos will be monetized even more.”
The strongest market segment was audio streaming, accounting for a whopping 73.3% of total industry revenue. This represents a 14% increase from 2021.
CD sales were the second-biggest source of revenue, with a market share of 12.9%. Vinyl recorded a 6% share of sales, while downloads contributed a mere 2.2%.
Overall, digital revenue increased by 11.7% in 2022, while the physical business declined by 11.9%.
Although vinyl sales witnessed a 5.1% growth in 2022, this pales in comparison to the 20.1% growth reported in 2021. Drücke says that data has continuously placed vinyl records as a favorite among young people, adding, “From the summer of 2023, the culture pass could have a stimulating effect, both for fans and for the industry.”