music industry revenue generated in 2021
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Key Facts
The CreativeTech Industry in Numbers
- In 2022, there were more than 14 million recreational and 69,000 professional musicians in Germany. There were 1.4 million people enrolled in recreational music courses in 934 music schools. There are 24 pure music universities and 89 universities that feature a music faculty. This means that instruments and other musical equipment are in high demand in Germany, with many million musicians who are interested in creating music.
- In 2022, live music events generated a revenues of EUR 1.7 billion. There are 130 orchestras that play more than nine thousand concerts each year. These concerts are frequented by over five million visitors annually.
- There are more than 20 thousand companies involved in the film industry. They provide work to around 119,000 film industry professionals.
- On average, Germans watch 328 minutes of television per day. Of this time, 51.8 percent is spent on private channels. The RTL group has the biggest market share with 22 percent, followed by ProSiebenSat1 with a 17.8 percent audience share.
- On-demand streaming is on the rise in Germany. In 2022, video streaming was used by 34 percent of Germans on a daily basis and by another 30 percent at least once a week. Platforms use varies significantly subject to the data source. YouTube is the most popular platform, followed by the media offerings of the public TV stations. The next most popular video platforms are Netflix, Amazon Prime and Disney+ respectively.
Opportunities
MusicTech
There is a strong music tech ecosystem with big players including Ableton, Native Instruments and Magix all headquartered in Germany. The fact that music tech companies and many leading electronic music artists call Germany their home, makes for a unique combination that accelerates innovation in the sector.
Podcasts
In 2023, around 29 percent of Germans listened to podcasts at least on a monthly basis. And it’s not just Spotify and Apple that are active in the German market, but the big news sites are also discovering the advantages of the medium. The five favorite podcast genres in Germany are: news programs, music programs, science and technology, society and culture, comedy, and entertainment. A number of developments are expected to contribute to the rising popularity of podcasts. Advertising revenues for podcasts in 2022 rose to around EUR 38 million.
Skilled Workforce
Germans are fond of new technology and German engineering is world renowned for its excellence. Whether looking for skilled instrument builders or top-notch music software engineers, Germany boasts a highly qualified workforce in all of these areas. That is why increasingly more companies recognize the value of bringing production that requires highly technical skills to Germany.
Streaming Services
Classic linear television remains the main type of video usage, although video on demand (VoD) is on the rise. Apart from the big players such as Netflix and Amazon, the German private television stations and pay-TV providers are also trying to gain a foothold in the streaming market. All of the big players (ProSiebenSat1, RTL, Sky) have launched their own streaming services. They feature national and international series and films as well as their own productions, in order to gain a competitive edge. The shifting trend towards VoD will continue in the coming years. Nevertheless, linear television will continue to remain a major part of television consumption for the foreseeable future.
Social TV
Social media has been on the rise for some years now and most entertainment options have some form of social media interaction. This may be Twitter hashtags while discussing political issues or fans posting live concert photos of their favorite artist on Instagram.
It comes as no surprise then, that consumers also use their telephones and other mobile devices while they follow their favorite television programs. This "second screen" is often used to comment on and discuss the programs being watched. This not only increases the reach of the content to the contacts of the people that use the social media options, it can also help to expand advertising messages onto the second screen. Because smartphones collect different user-data points from Smart TVs, the marketing messages on the television screen can be enriched and even personalized.
Programmatic Advertising
Programmatic advertising is a technology that allows marketers to show targeted marketing messages on individual television devices subject to audience, time and day as well as more granular demographic data. This feature increases the efficiency as well as the effectiveness of the marketing approach. This instrument is often used in combination with artificial intelligence in order to further optimize targeting.
Programmatic advertising has already been used for online marketing on the web and in apps for a long time. Thanks to the increased spread of smart TVs and their connection online, this marketing technology is also being used for linear television more and more. Some 64 percent of German households already own a smart television and are therefore targetable via programmatic advertising.
Original Content
Original content is one of the main reasons for consumers subscribing to a certain streaming provider. And, as the number of streaming services increases, providers are hard pressed to find ways to distinguish their offering. That is why it becomes more crucial for the streaming providers to create and produce their own content available only on their own platform.
The attractiveness of original content also increases when local storylines and movies are produced, as customers feel more at home with these motion pictures. The trend towards increased local productions is also supported by a European directive: the streaming providers’ catalogues need to consist of 30 percent European content. This led Netflix and other streaming providers to invest heavily in the production of European originals and co-productions.
Business Environment
The majority of films produced in Germany are partly funded by one of the many public film-funding programs. In 2021, the German funding programs had a funding volume of around EUR 600 million. This is divided between national and regional support funds. These funding programs require some reference to the region providing the subsidies. Requirements include, for example, that sections of the film are shot locally or that part of the funding is spent in other ways in the region to support the local economy.
Several legal regulations are important for companies active in the creative tech sector in Germany. Here are some of the most important ones.
- General Data Protection Regulation (GDPR): The GDPR regulates the handling of personal data and ensures that user privacy is protected. Companies must provide transparent information about data collection and processing and obtain user consent.
- German Telemedia Act (TMG): The TMG regulates the legal framework for electronic information and communication services. It contains provisions on the obligation to provide a legal notice, privacy policy and the responsibility of service providers.
News
Germany's CreativeTech industries present a dynamic business environment with constantly emerging opportunities. Explore the exciting developments shaping the future of CreativeTech in Germany.
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