Third-Largest Market Moving Digital

The world’s third-largest music market is starting to embrace the digital market, according to a survey by Germany’s main music association.

A BVMI (Bundesverband Musikindustrie) report says consumption of digital music is up by 11 percent and now 22 million Germans purchase music that way.

The physical market still dominates sales and provides 83.4 percent of total music revenues of euro 1.67 billion (about $2.1 billion), but in 2011 revenues from digital sales rose 21.2 percent to euro 247 million ($310 million).

The survey also showed that 81 percent of Germans are satisfied with the country’s online music stores, and there are now more than 50 sites offering legal downloads. About the same number believe it’s right to fine people who offer copyrighted content online without permission. More than half the population also felt it was right to fine people for illegal downloading.

“The growth of the digital market is something we are very happy about,” said Frank Briegmann, president of Universal Music Deutschland, and a BVMI board member. “It just about compensates for the decline in the physical market.”

He said that a return to positive growth still requires “rigorous action against copyright violators.”