The Federal Association of the Music Industry (BVMI) reports sales of 1.056 billion euros (1.18 billion US dollars) for the first half of 2023.
Revenue from streams, CDs, downloads and vinyl sales increased by 6.6% compared to the first half of 2022. Physical sales were at a similar level to the same period and remained stable (-0.8%). CD sales decreased by -4.1% compared to 2022, but still contributed 11.2% to total sales in 2023.
Vinyl accounts for 6% of the total sales market. Taken together, CDs, vinyl, DVDs and physical singles account for less than one-fifth (18%) of total sales, while the digital market grew 8.4%, accounting for four-fifths of the market. Audio streaming revenue continued to grow by 9.7% in the first half of 2023, while downloads fell by 4.9% over the same period.
“Music distribution in Germany continues to develop positively, despite the overall complex economic situation,” says Dr. Florian Drücke, CEO of the BVMI. “Streaming has been the well-known driver for many years, which has significantly increased the overall market, the famous cake, and from which everyone involved – companies and artists alike – benefits.”
“Unfortunately, this fact is being ignored in the current unbalanced debate about the streaming market. Just as the entrepreneurial perspective is all too often disregarded, which in recent years has repeatedly had to adapt to changing market conditions and new players.”
“Nowadays, the way into the music market is literally open to anyone with working internet access; Artists are free to decide whether and which partnerships and services they want to use; Accordingly, the cooperation between labels and artists is modular and, in the case of a collaboration, very individual,” says Drücke continues.
“At the same time, it is our member companies that pay advances, which in most cases are not repaid. This high entrepreneurial risk is also part of dealing with the realities of our industry and the roles of the respective partners in the market.”