German music market continues to grow
The German music market continued to grow in the first half of 2016. Revenue from the sale of CDs, records, downloads and the use of streaming services increased by a total of 3.6% compared to the same period last year.
Revenues from premium subscriptions and ad-financed access to services such as Spotify, Apple Music, Deezer, Napster & Co increased by 88 percent; with a combined market share of 24.4 percent, sales in this area are now well ahead of downloads for the first time, which account for 14 percent of total sales, writes the German Music Industry Association (BVMI).
An increase of 46.2 percent compared to the same period last year gives vinyl records a 4.3 percent share of total sales (first half of 2015: 3.1 percent). The backbone of the German music market, the CD, remains the leader among music consumption media with a 52.3% share of sales, but declined by 9.6% in the first half of 2016. Overall, this now results in a market split of 60.4% from physical and 39.6% from digital music sales.
According to Dieter Gorny, Chairman of the BVMI Executive Board, the figures indicate that change is happening even faster than previously assumed. It is therefore more important than ever to clarify the framework conditions for creatives and their partners as quickly as possible and adapt them to reality.
A few weeks ago, the open letter to the EU Commission, signed by more than 1,100 affected parties, showed that not least the artists have serious concerns because the new forms of distribution mean hardly any substantial income for them. The development could "result in a significant restriction of professional music creation".
