German Recorded Music Industry Jumps 6.6% During H1 2023—”The Pie Is Getting Bigger Overall, Benefitting Everyone”

German recorded music industry
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German recorded music industry
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Photo Credit: Samuel Hagger

The German Music Industry Association (BVMI) has announced the German recorded music market grew by 6.6% in the first half of 2023—reaching €1.056 billion.

Physical sales were at a similar level compared to 2022 and remained stable with a slight loss (-0.8%) compared to 2022. CD sales contributed 11.2% to physical sales, while vinyl came in at 6% of the market. Meanwhile, sales of DVDs and Blu-rays in Germany saw a slight increase (+0.9%) compared to 2022.

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Photo Credit: BVMI

Together, all physical mediums including CDs, vinyl, DVDs, and physical single sales generated around 18% of sales, while the digital market dominates—responsible for 82% of sales. The digital segment saw 8.4% growth in H1 2023 compared to the same period in 2022.

Revenues from audio streaming grew by 9.7%, while revenue from downloads declined by 4.9%. “Music sales in Germany continue to develop positively despite the economically complex overall situation,” shares Dr. Florian Drücke, Chairman & CEO of the BVMI.

“For many years now, streaming has been the well-known driver that has significantly increased the market as a whole, the famous pie, ultimately benefitting everyone involved—companies and artists alike.”

“Unfortunately, this circumstance is ignored in the current unbalanced debate about the streaming market. Just as the entrepreneurial perspective is all too often left out, which in recent years has had to adapt again and again to changing market conditions and new players.”

“Today the way into the music market is literally open to everyone with a functioning internet access; artists are free to choose whether and if so, which partnership and services they want to use. Accordingly, the cooperations between labels and artists are modular and highly individual in the case of collaboration,” Drücke continues.

“At the same time, it is our member companies who pay the advances, which in the vast majority of cases are not being recouped. This high entrepreneurial risk is also part of dealing with our industry’s realities and the roles of the respective partners in the market.”