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The German music industry generated €2.07 billion in revenue in 2022, according to a report by the Bundesverband Musikindustrie (BVMI).
As per Digital Music News, even though it’s not the first time the industry has hit the €2 billion mark, it’s been 20 years since its last peak in 2002, when it made €2.21 billion.
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The breakdown of revenue sources has changed significantly over the past two decades, with streaming and downloading now accounting for 80.3% of the total revenue. Meanwhile, physical sales (mostly CDs and vinyl LPs) generate only 19.7% of the revenue.
The BVMI represents over 85% of music consumption in Germany and is a globally recognized music organization. The €2.07 billion earnings represent a 6.1% growth in Germany’s recorded music market, making it the world’s third-largest music market, after the U.S. and Japan.
BVMI CEO Dr. Florian Drücke commented on the growth of the streaming segment: “An increase of 6.1% means growth for the fourth year in a row. The fact that the industry has passed the €2-billion mark for the first time in two decades is good news of far more than symbolic value.”
Drücke added: “Looking at streaming, it will be exciting to see how the price hikes from the early providers we’ve seen recently will now play out in the broader market and also how short-form videos will be monetized even more.”
Audio Streaming Dominated The German Music Market In 2022
Last year, audio streaming accounted for an impressive 73.3% of total revenue in the German music industry, a 14% increase from 2021. CD sales took second place, contributing 12.9% of the revenue, while vinyl sales recorded a 6% share. Downloads lagged behind with a mere 2.2% of revenue.
Digital revenue experienced an overall increase of 11.7% in 2022, while physical sales declined by 11.9%.
Although vinyl sales grew by 5.1% in 2022, this is a significant drop from the 20.1% growth seen in 2021. Drücke noted that data consistently shows vinyl records are a favorite among young people.
Next: Vinyl Sales In The UK Surpassed CDs For The First Time Since 1987: What Does This Mean?
Image by Christian Wiediger via Unsplash
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Image and article originally from www.benzinga.com. Read the original article here.