CD-Loving Germany Sees 86 Percent Jump In Streaming, Sales Increase

The German music market increased sales by 4.4 percent in 2015’s first half compared to 2014, according to a report released Wednesday by Germany's Federal Music Industry Association (BVMI). 

The revenue from physical and digital music sales at the end of the first six months of 2015 amounted to €686 million. However, the gains come primarily from streaming services including Spotify, Deezer, Napster and Apple Music, which now account for 12.8 percent of all sales (first half 2014: 7.7 percent). The download market rose by 3.2 percent over the previous year in Germany, driven mostly by growth in purchased albums. At the moment, digital music sales make up roughly one third of turnover: at the end of the first half of 2014, it was still 26.5 percent. 

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The vinyl market saw a sharp increase of 33 percent, bringing it a 3.1 percent share of the total market. In turn, the 3.3 percent overall decline in the CD market appears to be consistent with the decline in the overall physical market, although it remains moderate in global comparison.

BVMI Managing Director Dr. Florian Drücke told Billboard: "The 87 percent increase in music streaming even exceeds the forecast contained in the streaming study we published back in March. With regard to current discussions about copyright amendments, it's important we don't forget that the digital licensing business needs reliable conditions to function effectively, and this requires involving creatives and their partners in the revenues generated by the platforms to the appropriate degree."

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Philip Ginthör, CEO Sony Music GSA and member of the BVMI board, told us in Munich: "A great interim result for the artists and the industry. Digital business is the driving force in the German market. The music industry will achieve sustainable growth if we continue  to focus on investing in talent and fair digital revenue models."