Increase in Music Sales
The recorded sales of music in Germany rose by 7.8% year-on-year, reaching 2.38 billion euros (equivalent to 2.58 billion US dollars) in 2024. For the first time, digital music sales surpassed two billion euros.
According to the Federal Association of the Musical Industry of Germany (BVMI), digital music generated € 2.001 billion (approximately 2.17 billion dollars based on the average exchange rate). This represents an increase of 11.2% year and accounts for 84.1% of all music sales in the world’s fourth-largest music market.
Excluding downloads and other digital sales, streaming experienced a growth of 12.6% year, contributing to 78.1% of music income, as stated by BVMI in a report released on Thursday (February 20).
“The clear double-digit growth in streaming sales indicates that more fans are enjoying the benefits of this form of music consumption by subscribing to one of the providers,” said Dr. Florian Drukke, Chairman and General Director of BVMI. “This trend reflects what we are witnessing globally.”
Streaming vs Physical Sales
BVMI reported last month, referencing data from GFK Entertainment, that the total number of music streams, including those supported by ads and premium services, reached 236 billion in 2024, marking an increase of 12% since 2023 and more than double the 108 billion hours recorded in 2019.
Digital music sales in Germany have increased more than fourfold since 2015, while physical format sales have declined by over 64%.
In 2024, sales of physical recorded music saw a further decline of 7.4% year, totaling 379 million € (around 410.2 million dollars), despite a 9.4% year rise in vinyl sales. CDs still lead vinyl sales in Germany, with a decrease in their sales by 17.1% year.
“With 40.5% share of the physical market, vinyl has yet to surpass compact discs,” commented BVMI.
Synchronization licensing grew 41.4% year to 11 million € (approximately 11.9 million dollars), while neighboring rights, assessed by the German GVL industry body, reportedly grew by 0.1% to 249 million € (around 269.5 million dollars); however, final figures for neighboring rights in 2024 are still pending.
All figures mentioned are gross sales that include value-added tax (VAT).
Drukke emphasized that the shift to streaming benefits German artists.
“As a recent analysis from the Luminate market research company indicates, German artists are particularly benefitting from this trend – in 2024, 43% of the top 1000 songs streamed in Germany were by local acts,” he stated.
Local Artists’ Rising Popularity
German acts have become increasingly dominant in the streaming market’s upper echelon. According to an analysis by economists There will be a page and Chris Dalla Riva, eight out of the top ten artists in Germany in 2023 were local.
This trend is relatively recent and reflects the shift towards streaming. GFK’s analysis shows that while streaming in the 1990s and earlier was dominated by international acts like Elvis Presley, Queen, and Michael Jackson, German artists have taken the lead in streaming since the 2020s with popular names such as Ailiva, Pashamim, and Luciano.
Alongside France and Italy, Germany is a leader in Europe regarding the growing popularity of local music.
“Simultaneously, the demand for high-quality physical sound formats remains strong, with vinyl sales increasing by 9.4%, supporting the overall positive trend in the market,” Drukke remarked.
Germany’s recorded music business generated $2.58bn in 2024, up 7.8% YoY
