The revenue share of streaming services in the German and American music industry grew in the first half of 2019. Services such as Spotify and Apple Music account for an increase of 27.7 percent and 56.4 percent of total sales in this country. In the USA it is already 80 percent of total sales and an increase of 26 percent. These are the results of the Recording Industry Association of America , or “RIAA” for short, and the German Music Industry Association , “BVMI” for short.
Growth drivers in the music industry: Spotify and Apple Music
In the first six months of 2019, the German music industry is expected to have achieved total sales of around 783 million euros, 7.9 percent more sales than in the first half of 2018 and the highest growth rate since 1993. According to the Federal Music Industry Association, audio streaming is responsible for this, which is said to have increased by 27.7 percent. The remaining share of total sales is made up of 28.2 percent CDs, 6.6 percent music downloads, 4.4 percent vinyls, 1.2 percent music DVDs and Blu-rays, 3.0 percent ring tones and Co. and with 0.3 percent other physical media such as Super Audio CDs (SACD) or cassettes.
According to the RIAA, the US record industry is also said to have recorded an increase in sales of 18 percent in the first half of 2019. With 80 percent of the 5.4 billion US dollars, the largest share was also achieved through streaming services. The American music industry achieved the remaining share of total sales 9 percent through the sale of physical media, 9 percent through downloads and 2 percent through so-called “synchronization royalties”, ie the use and licensing of pieces of music in films, for example.
The growth drivers are Spotify , with over 100 million subscribers, and Apple Music , with over 60 million subscribers , for which the California-based company launched a web app a few days ago .
Is the vinyl record making its comeback soon?
In Germany, CD sales are said to have stabilized slightly with a decline rate of 11.7 percent, halved compared to the same period in the previous year, while sales of vinyls are said to have increased by 7.4 percent. In the US, vinyl sales are said to have increased by 12.9 percent, while CD sales remained almost unchanged. Specialized media such as Rolling Stone therefore attest vinyl records a comeback and predict that vinyl sales could soon exceed CD sales for the first time since 1986.