Germany’s Record Business Generated $2 Billion for the Second Consecutive Year in 2021
Germany’s record sales topped $2 billion (retail) for the second consecutive year in 2021.
That’s according to new figures released by the German Music Industry Association (BVMI) released today (March 3).
BVMI reports that German market revenue from physical music sales and streaming generated a total of 1.96 billion euros (about $2.25 billion), a 10% year-on-year increase. the other compared to 2020.
The country’s revenue from physical music sales and streaming reached 1.79 billion euros (about $2.02 billion) in 2020, a 9% year-on-year increase.
The largest share (76.4%) of the market’s recorded music revenue came from digital music, which generated revenues of €1.5 billion ($1.6 billion) in 2021, up up 17.7% from the previous year, when digital music generated €1.3 billion ($1.44 billion). ).
BVMI notes that digital will soon represent 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, streaming audio grew 18.6% year-on-year, representing slower growth than in 2020, when the format’s revenue grew 24.6%.
Audio streaming recorded a 68.3% share of total revenue in 2021, meaning Spotify and Apple Music revenue reached €1.33 billion ($1.47 billion), which represents a larger share of the market compared to the previous year, when streaming audio accounted for 63.4% of total recorded music revenue.
Germany generated 165 billion music streams in 2021, almost a fifth more than in 2020.
Elsewhere, physical music revenue, including vinyl and CD sales, accounted for 23.6%, or 462 million euros ($512 million) of total recorded music revenue.
CD sales fell 16.7% year-on-year in 2021, but it was still the second best-selling sales format in the market with a 16.3% share of total revenue.
Vinyl sales, meanwhile, grew by 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 euros in 2021, revenues are again approaching the level of 2002.”
Dr. Florian Drücke, BVMI
Dr. Florian Drücke, Chairman and CEO of BVMI, said: “A growth of 10% certifies that the digital pioneer music industry, which has been heading down the valley for so many years and sometimes at a breakneck speed, recognized digital disruption as an opportunity and drew the right strategic conclusions.
Drücke adds: “This is reflected 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 euros in 2021, revenues are again approaching the level of 2002.
“Nevertheless, this positive development should not overshadow the fact that the difficulties in the living sector remain immense.
“In this context, we urgently hope that artists and our colleagues in the industry can plan better, which now seems to be starting to happen.”
“The strong and steady growth once again underlines the continued success of our content.”
Frank Briegmann, Universal Music Central Europe and Deutsche Grammophon
Frank Briegmann, CEO of Universal Music Central Europe and Deutsche Grammophon, added: “The strong and stable growth once again underlines the continued success of our content.
“But above all, the figures prove the immense potential that still awaits us. Because despite the continuous strong increases in the streaming segment, territories such as Scandinavia, the United Kingdom or the United States still have more than double the market penetration in terms of paying premium subscribers.
“If, at the same time, we inspire new target groups for streaming, expand distribution channels and, additionally, maintain the relative strength of physical formats through product innovations and high-quality fan editions, so we look forward to further growth in the German music market with our artists and partners.
“Especially in the context of the tensions caused by the pandemic, this report 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 in the context of the tensions caused by the pandemic, this report for 2021 is very good news for all artists and for the whole music industry.
“Together, we want to continue investing in emerging and established artists, offering them the best possible service and partnership to meet the challenges of the streaming era.
“At the same time, we look forward to a prosperous return to the live industry, both for our artists and for our many partners in the live industry.”
“The crisis has shown how important and beneficial music is for all of us.”
Doreen Schimk & Fabian Drebes, Warner Music Central Europe
Doreen Schimk & Fabian Drebes, co-presidents of Warner Music Central Europe, said: “The crisis has shown how important and beneficial music is for all of us. However, we have successively expanded our market share even before and grown in all fields, last year in the physical field even against the market trend.c
“The outstanding performances of our artists such as Ed Sheeran (Germany’s most streamed international artist), Katja Krasavice (most No. 1 hits of the year) and Udo Lindenberg are the highlights of our growth journey. .
“In 2021, we achieved the best commercial year in our history with our artists, our partners and our team. We therefore look forward with optimism and curiosity to the further development of the market”.
“Double-digit growth in 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 Ambassade de la Musique and Spokesperson for the Extraordinary Members of the BVMI Board of Directors, said: “Double-digit growth of the overall market at the end of the year for the first time in decades is a truly joyful outcome. in an emotionally extremely difficult time.
“We must, especially given the current strong economic position of our part of the industry, continue to work to bring all players in the field of “recorded music” on our side, that is to say, to create opportunities, platforms, etc. for the national (emerging artists) with our partners in the media and in the trade and, in addition, to have an open dialogue on the remuneration in streaming; this also in order to clarify the half-knowledge sometimes dangerous, in particular among the media.The music industry around the world