The German music industry grew by 7.9% in first half of 2019 according the BVMI, the German record industry association in its Half Year Report. In the first six months of the year, the industry generated a total of €783.21 million from audio streams and the sale of CDs, downloads and vinyl. This is 7.9% more than in the same period of the previous year (H1 2018: €725.9 m) and marks the highest growth rate since 1993. One reason for this is audio streaming, which grew by 27.7% and further expanded its position as the number one segment by revenue. CD sales (-11.7%) stabilized slightly with a rate of decline halved compared to the same period last year, while vinyl continued to grow after a short breather (+7.4% compared to the same period last year). Downloads, on the other hand, declined significantly (-16.3%), but also somewhat less than in the first half of 2018.
Overall, the digital business grew by 21.1% in the first six months of this year to reach a 66% share of total revenues (2018: 56.7%). Physical sales (-11%) accounted for 34% of total revenues. At 56.4%, audio streaming has the largest share of industry revenues, followed by CDs (28.2%), downloads (6.6%) and vinyl (4.4%).
Dr. Florian Drücke, BVMI Chairman & CEO: “Streaming is now also having a leverage effect in Germany. With a digital share of two thirds, the industry shows how far it already is on the way to digital turnaround. The reasons for the dynamic growth rates in (legal) audio streaming are, above all, attractive offers, but also the prevalence of smartphones and flat rates. Fortunately, we are seeing a growing understanding that the rights of creatives and their partners must be protected in the digital environment, and that online platforms must also be held responsible in this context.”
