SOMM - Society Of Music Merchants e.V.
Industry
MUSIC INDUSTRY AS PART OF THE CULTURAL AND CREATIVE INDUSTRIES
The music industry - a key driver of the cultural and creative industries
With a turnover of 17.4 billion euros in 2023, the German music industry is one of the most dynamic sectors of the cultural and creative industries. Despite the challenges posed by the coronavirus pandemic, the industry has not only returned to pre-coronavirus levels, but has significantly exceeded them with an 18% increase in turnover and a 20% increase in gross value added. Around 156,000 people will be employed in the industry in 2023, an increase of 4% compared to 2019.
The music industry is characterised by its strong networking: 80 per cent of the upstream services amounting to 10.5 billion euros were generated within the industry itself. This internal integration - from music events and recordings to publishers, musical instruments, creatives and collecting societies - is a key factor in its success.
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But its importance extends far beyond the industry: the so-called spillover effects will amount to €28 billion in 2023. Numerous sectors - from broadcasting and electronics to tourism and the media - benefit directly from the services provided by the music industry, be it through music content or technical equipment.
The music industry therefore stands not only for cultural diversity, but also for economic strength, innovation and growth. It is an indispensable part of the cultural and creative industries and a key contributor to economic and social development.
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Source: Study: Musikwirtschaft in Deutschland
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1
Significant contribution to gross value added
The German music industry generated revenues of approximately €17.4 billion in 2023. Gross value added amounted to approximately €6.6 billion. By comparison, the gross value added of beverage production, including the production of alcoholic and non-alcoholic beverages, was approximately €8.5 billion.
2
Economic relevance continues to grow
Economic importance continues to grow In 2023, the music industry not only surpassed its pre-Corona level, but also recorded an 18% increase in turnover and a 20% increase in gross value added compared to 2019.
3
Positive development in the labour force
In 2023, around 156,000 people were employed in the music industry, an increase of 4 per cent compared to 2019. Of these, 41 per cent were self-employed or owners (around 64,000) and 59 per cent were employees (around 92,000). In addition, 33,600 people worked as freelancers in the industry.
4
Rising gross value added per person in employment
In 2023, around 156,000 people were employed in the music industry, an increase of 4 per cent compared to 2019. Of these, 41 per cent were self-employed or owners (around 64,000) and 59 per cent were employees (around 92,000). In addition, 33,600 people worked as freelancers in the industry.
5
High level of vertical integration in the industry
The music industry is one of the most vertically integrated sectors: Of the total €10.5 billion of intermediate consumption in 2023, around 80 per cent, or around €8.5 billion, was sourced from other companies within the music industry. By comparison, the automotive and financial sectors sourced only 44% and 34% of their intermediate inputs from within their own sector in 2020.
6
Economic activities through procurement
In 2023, the music industry made purchases worth 2.1 billion euros from other sectors. These purchases led to a gross value added of 1.8 billion euros and supported 16,900 jobs along the supply chain. Purchases increased by 15 per cent compared to 2019.
7
Stimulation of consumer spending through wages
Wages and salaries paid by the music industry and companies along the supply chain generated further economic activity. In 2023, consumer spending by employees generated €1.9 billion of gross value added and supported 19,400 jobs. In 2019, these effects amounted to 1.5 billion euros and 17,800 jobs.
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Overall economic effect of the music industry
Through the combination of purchases along the supply chain and wage-financed consumer spending, the music industry supported a total gross value added of 3.6 billion euros and 36,300 jobs in other sectors. This represents an increase in gross value added of 14 per cent compared to 2019, while the employment effect was slightly reduced (-2 per cent).
9
Sales growth in the audio and media segment
Sales of audio electronics products (such as speakers and headphones), storage media (such as USB sticks and blank CDs) and audiovisual media with music content (such as radio advertising and subscription video-on-demand) will increase from EUR 15.2 billion in 2019 to EUR 16.1 billion in 2023.
10
Decline in music tourism
Music tourism turnover fell from 13 billion euro to 11.7 billion euro. Music tourism includes 5 million trips with overnight stays, of which 86% are short breaks (up to 3 nights). In addition, 299 million day trips were motivated by attending music events such as concerts.