According to a, the German music industry generated sales of 2.07 billion euros in 2022 report from the Federal Association of the Music Industry (BVMI).

acc Digital Music News, while it’s not the first time the industry has hit the €2 billion mark, it’s been 20 years since it hit its last peak in 2002 when it generated €2.21 billion.

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The split of revenue streams has changed significantly over the past two decades, with streaming and download now accounting for 80.3% of total revenue. Meanwhile, physical sales (primarily CDs and vinyl LPs) generate only 19.7% of sales.

The BVMI represents over 85% of music consumption in Germany and is a globally recognized music organization. The revenues of EUR 2.07 billion represent a 6.1% growth in the German recorded music market, making it the third largest music market in the world after the US and Japan.

BVMI Managing Director Dr. Florian Drucke 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 surpassed the 2 billion euro mark for the first time in two decades is good news of far more than symbolic value.”

Press added, “Looking forward to streaming, it will be exciting to see how the price hikes from the early providers that 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 sales in the German music industry, a 14% increase from 2021. CD sales came in second, contributing 12.9% of sales, while vinyl sales accounted for one Share of 6% recorded. Downloads lagged behind at just 2.2% of sales.

Digital revenue saw an overall increase of 11.7% in 2022, while physical sales fell by 11.9%.

Although vinyl sales grew 5.1% in 2022, that’s a significant drop from 2022’s 20.1% growth.