For years, record labels around the world have been fighting the trend of people pirating their music from illegal sharing sites, which has resulted in losses for many years. While it’s still a problem, the situation has been slowly improving with the help of the easy to access and competitively priced legal download sources such as the iTunes Music Store and Amazon.com’s mp3 store. In Germany, 2011 was the first year that the German music market saw growth instead of losses in 15 years and with some recent numbers that were just released, it looks like Germany is set for another profitable year in the music industry.
The German Music Industry Association (BVMI) and Media control, which is a market research firm, has reported that music downloads for the first half of 2012 have increased 32 percent compared to the first half of 2011. This is great news for the country’s record labels since music downloads are and obvious big growth area for the business. While in America it may seem like downloading music is favored over physical CDs, Germans still seem to favor the non-digital approach. Only 19.3 percent of legal music purchases in Germany came from music downloads.
Florian Drücke, CEO of the BVMI stated that although the market share of physical CDs remained at 72 percent, there was a decline of 5.4 percent for the medium and “one-fifth of all euros spent on music purchases in Germany were conducted digitally,”. This recent uptick in digital sales should help make 2012 the second consecutive year of profit for the German music industry.