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Music Downloading & Streaming Services in Germany - Market Research Report (2014-2029)

Robert Maier Robert Maier Frankfurt, Germany Last Updated: June 2024 WZ SP63.01DE Spotlight Report

Revenue

€2.1bn

2024

€2.1bn

Past 5-Year Growth

Profit

€XXX.Xm

Employees

4,841

Businesses

40

Wages

€XXX.Xm

Music Downloading & Streaming Services in Germany industry analysis

The music streaming and download industry has experienced an unprecedented upswing over the past five years. Since 2019, industry revenue has risen by an average of 10.9% per year. This development was driven by the triumph of music streaming, which offers flexible and uncomplicated access to a diverse range of music and replaced recorded music and music downloads as the top-selling segment in the German music market at the beginning of the second half of the last five-year period. Due to the growing popularity of digital offerings, the German music market as a whole has recently recovered significantly and, according to the German Music Industry Association, exceeded the EUR 2 billion mark in 2022 for the first time in 20 years.In the current year, industry revenue is expected to total 2.1 billion euros, which corresponds to a 7% increase in revenue compared to the previous year. This development is due to price increases by the leading streaming platforms, as well as the continuing rise in the proportion of the population using streaming services. In Germany, this is now almost every second person.Over the next five years, IBISWorld expects industry turnover to grow by an average of 8.4% per year. In 2029, the industry's turnover is expected to amount to 3.2 billion euros. Even if the first signs of saturation are becoming apparent, the growth in user numbers in the music streaming sector is not yet complete. However, as the market is highly competitive and dominated by a few globally active companies, further growth in the industry is unlikely to be accompanied by a significant increase in company and operating figures.

Trends and Insights

  • Music streaming is now responsible for a large proportion of industry revenue. Music streaming services offer instant and flexible access to an almost unlimited amount of music. Traditional music downloads only play a subordinate role in the industry's growth.
  • Streaming is the predominant form of music consumption today. Since the advent of powerful mobile internet connections, streaming services have formed the basis of value creation in the industry.
  • The industry is dominated by a few large providers. Due to the high barriers to market entry, only a few providers with high user numbers are active in the industry's most important segment, music streaming.

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  • Competitive analysis, industry segmentation, financial benchmarks
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  • Critical performance data and rankings
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 10.9 % over the past five years, to reach an estimated €2.1bn in 2024.

Trends and Insights

The majority of sales in the German music market are now generated with streaming services

  • In recent years, music streaming services have experienced a strong upswing in Germany. Streaming gives music listeners access to millions of music tracks via their mobile phones or other devices without having to download them.
  • Additional trends and insights available with purchase
Music Downloading & Streaming Services in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Competition among streaming providers is likely to intensify in the coming years

  • The number of users of music streaming services has risen extremely dynamically in recent years. Further, albeit somewhat less dynamic, growth in the streaming market is also expected in the coming years.

Biggest companies in the Music Downloading & Streaming Services in Germany

There are no companies that hold a large enough market share in the Music Downloading & Streaming Services in Germany industry for IBISWorld to include in this product.

Products & Services Segmentation

Music Downloading & Streaming Services in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Music streaming and Music downloads. Music streaming is the largest segment of the Music Downloading & Streaming Services in Germany.

Trends and Insights

Music streaming services offer flexible and convenient access to large music libraries

  • Music streaming accounts for by far the largest share of sales in the industry. Music streaming platforms store a large selection of music tracks centrally on their own servers, enabling their customers to play the desired audio files at any time via the internet using a suitable end device such as a computer or smartphone.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The industry comprises companies that provide digital music content. With music streaming, licenced audio data is transmitted via the internet and played directly on a device when it is received. In contrast to downloading audio files, which is also part of the industry, streaming content is not stored on the user's receiving device, or only temporarily. Music streaming services are predominantly operated on the basis of a subscription model, but can also be ad-financed.

What's included in this industry?

Music streamingMusic downloads

Companies

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Related Terms

PODCASTRADIO

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Music streaming is now responsible for a large proportion of industry revenue. Music streaming services offer instant and flexible access to an almost unlimited amount of mus...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Factors that influence volatility in the industry
  • Key success factors for businesses to overcome volatility

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Streaming is the predominant form of music consumption today. Since the advent of powerful mobile internet connections, streaming services have formed the basis of value crea...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Purchase this report to unlock analyst insights.

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

The industry is dominated by a few large providers. Due to the high barriers to market entry, only a few providers with high user numbers are active in the industry's most im...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

To date, there are no laws in the European single market that explicitly deal with music streaming. However, in 2024, against the backdrop of the ongoing debate on the approp...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Margins are falling due to increased price competition and the high licence fees for providing the service. The combination of intense competition, high licensing costs and i...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Music Downloading & Streaming Services industry in Germany in 2024?

The market size of the Music Downloading & Streaming Services industry in Germany is €2.1bn in 2024.

How many businesses are there in the Music Downloading & Streaming Services in Germany industry in 2024?

There are 40 businesses in the Music Downloading & Streaming Services industry in Germany, which has grown at a CAGR of 2.7 % between 2019 and 2024.

Has the Music Downloading & Streaming Services industry in Germany grown or declined over the past 5 years?

The market size of the Music Downloading & Streaming Services industry in Germany has been growing at a CAGR of 10.9 % between 2019 and 2024.

What is the forecast growth of the Music Downloading & Streaming Services industry in Germany over the next 5 years?

Over the next five years, the Music Downloading & Streaming Services industry in Germany is expected to grow.

What does the Music Downloading & Streaming Services in Germany include?

Music streaming and Music downloads are part of the Music Downloading & Streaming Services industry.

How competitive is the Music Downloading & Streaming Services industry in Germany?

The level of competition is high and increasing in the Music Downloading & Streaming Services industry in Germany.

Related Industries

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View all industries in Germany

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.