2001 German Shipments Decline 10% In Value

The value of music shipments in Germany in 2001 fell 10.2% from the year before to 2.235 billion euros ($1.97 billion), according to figures compiled by market research firm GfK for the German Phonographic Industry Assn. (BPW). Shipments declined 8.4% to 244.1 million units.

The slump in CD albums was particularly dramatic, down 11.1% to 173.4 million units. Gerd Gebhardt, president of Germany's three industry bodies, says the decline was caused by "disproportionately large drops in compilations advertised on TV and radio and new releases." He adds that compilations are "particularly exposed to the risk of CD-burning and are down more sharply relative to budget and mid-size product."

Singles shipments dropped 4.9% to 48.6 million units, while music DVDs more than doubled to 1.3 million units.

More CD-Rs were burned in Germany in 2001 than prerecorded albums were sold. According to a GfK study on CD copying, 19 million people created 332 million copied CDs, of which 55% contained music. "If the copied music had been bought, it would have generated revenues of around 2.73 billion euros [$2.41 billion]," notes Gebhardt. GfK estimates that 492 million tracks were downloaded illicitly last year, a potential loss of 740 million euros ($653 million).

According to Gebhardt, the industry is proposing that all CDs released in Germany be fitted with anti-copying mechanisms by the end of the year. Such a measure would require approval from the record companies.

BPW managing director Peter Zombik yesterday warned that the German business is probably down by almost 10% in the first two months of this year.