Austria, Switzerland and Germany's music markets reported growth in 2020

By Emmanuel Legrand

The recorded music markets in Germany, Austria and Switzerland have experienced growth in 2020, despite the lockdown, with revenues boosted by good performances from music streaming. 

  In Germany, revenues went up 9% year-on-year to €1.79 billion in 2020, with streaming revenues up 24.6% and physical sales down 11.7%, despite a strong performance of the vinyl market, according to industry body BVMI.

  Digital music accounted for 71.5% of total revenues in 2020, with revenues from streaming taking a 63.4% share against 55.1% in 2019. Overall, streaming generated  €1.13bn in revenues, up 24.6% compared to the previous year. 

Good digital figures

  Dr. Florian Drücke, Chairman & CEO of BVMI, pointed out that thanks to YouTube, video streaming "is one of the most popular online usage channels, but does not even contribute 4% to the total revenue in Germany!"

BVMI's Dr. Florian Drücke

  “What was already apparent in the summer has been confirmed: The good digital positioning of our member companies over the past few years means that our industry is currently coming through the crisis well in terms of total sales – even more so, due to the pandemic-related restrictions on public life, fans have nolens volens increasingly supplied themselves with music in the digital space, which has given us an overall growth of 9%," commented Drücke.

  CD sales were down 18% year-on-year at €387m, but still represented 21.5% of Germany's revenues. CD sales, which have been on a downward trend for several years, have been affected by the closure of retailers due to the country's lockdown.

  Reflecting a similar trend in most of the top markets, vinyl sales continued their growth and accounted for €99m in revenues, up 24.7% from the previous year. Vinyl sales represented 5.5% of total revenues, above downloads sales, which were down 24.8%, accounting for a mere 4.2% of total sales.

Impact of the pandemic in Austria

  > In Austria, revenues were up 3.4% to €171.6m in 2020 (+ 3.4%), according to the local branch of the IFPI. Despite posting positive growth, IFPI Austria noted that the pandemic had affected the market's growth rate and estimated that the local industry lost €30m in sales due to the pandemic. 

  Revenues from streaming were up by 32.4% to €91.6m, and were the largest source of income in the country for the third year in a row. IFPI reported that 10.5 billion songs were streamed in Austria in 2020, 34.6% more than in 2019.

  CD sales accounted for €22m, down 28% from 2019, while vinyl sales increased 15% to €9m, exceeding for the first time revenues from downloads at €6.9 million.

Recovery continued in Switzerland

  > In Switzerland, recorded music sales were up 3.9% to 190,6m Swiss franc (€172.5m), according to the annual report from IFPI Switzerland. Streaming revenues were up 16% to €130.8m and accounted for 76% of total sales. Download sales were down 25% in 2020 to €16.4m, while physical sales were down 20%, to €25m.

  “Despite the losses due to the pandemic, the recovery in the music market that began in 2016 continued," commented IFPI Switzerland. "Growth driven by the streaming listening segment, while downloads and physical recorded music media, such as CDs and vinyl records, continue to decline."