Despite facing challenges in the music industry’s economic landscape, Germany has witnessed an impressive 6.6% year-on-year increase in recorded music sales. This significant growth has added an extra $1.18BN to the German music industry during the first half of 2023.
In recent years, the German music industry has been on an upward trajectory after a period of decline, with the peak recorded in 2016. Since then, the industry has experienced steady growth, with revenue rising from €1.48BN in 2019 to €1.59BN and further increasing to €1.73BN in 2020. The trend continued in 2021, as the industry saw a €0.24BN increase, and in 2022, the music sales exceeded the €2-billion mark for the first time in two decades, reaching €2.21BN.
The projected growth suggests that this trend will continue until 2026, with an average yearly increase of €0.11BN. If the trend holds, the German music industry is expected to stabilize at an average revenue of €2.61BN, a remarkable achievement considering the industry’s previous struggles.
The surge in revenue has been primarily driven by digital music and streaming services. Physical sales, while still significant, have seen a slight decrease, comprising 18% of the market, compared to 19.7% in the previous year. On the other hand, audio streaming has experienced substantial growth, with a 14.0% increase in 2022 and a further 9.7% increase in 2023. Currently, audio streaming accounts for a remarkable 75.7% of the overall music industry profits in Germany.
Although the music industry’s resurgence is a positive development, it poses challenges for artists within Germany. Streaming as the primary method of music consumption has raised concerns, as artists may face diminishing returns due to the revenue rates of major streaming services. Additionally, while vinyl sales have been on the rise, producers are encountering decreasing returns from vinyl sales.
Despite these challenges, the growth of the German music industry is an encouraging sign of its resilience and adaptability to the evolving digital landscape.
Written by: Artificial Intelligence Technology