Streaming has overtaken CDs as the highest earning format in the German recorded music market for the first time, after rising 35.2% to represent a 47.8% marketshare in the first six months of 2018.
Overall, music sales revenues in Germany hit €727m from January to the end of June, which is down 2% from €742m in H1 2017, according to figures from trade body BVMI.
After declining 24.5% year-on-year, CD sales counted for 34.4% of the music market, ending the format’s 30-year reign as the dominant music format.
Downloads have also continued to decline at a rate of 23.4% to represent a marketshare of 8.5%.
For the first time since 2006, vinyl was also down by 13.3% to account for 4.4% of sales.
Alongside audio streaming, the only other segment to show growth was video streaming, which increased by 27.2% to account for 2.2% of total revenues.
The German music market is now 58.9% digital and 41.1% physical.
Florian Drücke, CEO of Germany’s Federal Music Industry Association (BVMI) said: “Audio streaming now represents almost half of revenues and has replaced CDs as the largest sales segment.
“This situation further reveals the necessity of establishing legal clarity with regards to digital licensing.”
Florian Drücke, Federal Music Industry Association (BVMI)
“This development marks a clear change in the constellation of the music market to the benefit of online sales. This situation further reveals the necessity of establishing legal clarity with regards to digital licensing.
“As we all know, licenses are the lifeblood of the creative industries, and this is particularly true in the digital era. Especially, it finally has to be made clear that user uploaded content services making music available must negotiate licenses on the market.
“On 12 September, the European Parliament will have the tremendous opportunity to pursue a better path and to update the rules of the ‘platform economy’ that have developed over the past 20 years.”
Bernd Dopp, President, Warner Music Central Europe added: “Streaming is continuing to gain real traction in the German music market.
“We are experiencing short-term market decline as CD sales fall year-on-year, [but] We remain confident that streaming will drive the market forward again as we go through the transition.”
bernd dopp, warner music central europe
“We are experiencing short-term market decline as CD sales fall year-on-year, and there were particularly strong physically performing releases in the first half of 2017 from the likes of Die Toten Hosen (pictured) and Ed Sheeran, which also impact the figures.
“We remain confident that streaming will drive the market forward again as we go through the transition.
“In the meantime, we’re pushing ahead with our strategy of investing in A&R, signing and promoting the local artists who are helping to grow the streaming market.”
Music Business Worldwide