RECORDED

MUSIC
Jean-Christophe MADLAING

Lets start with some figures about Recorded Music Industry in Spain and Germany:

Labels
In Spain, majors (Sony, Universal, Warner) are dominating the market. We can observe it by looking on the Spanish Top 25 physical sales (this week):

Physical sales are still the biggest revenue front of digital. But this figure is decreasing year after year and digital is becoming more and more important. The majors labels are present especially in: classical & Spanish variety in both single tracks and top albums. The independent labels (Blanco y Negro for example) are representing general pop music. XL Recording is a big independent with well-known artists such as MIA and co. Majors in Spain is promoting Spanish-speaking artist: Loquillo (Rock), Sergio Dalma (Pop), Diana Navarro (Pop) Analysis of 2 of the greatest independent labels: Blanco y Negro This Spanish label is really famous and is supplying artist on various type of music such as disco, electro, Caribbean music, an independent record company market leader. Blanco y Negro Music is the leading dance music record company in Spain and is able to work and compete with the most important multinationals. The key to their success is the excellent relationship they enjoy with the majors and the media. The most important foreign artists, DJs, producers and companies entrust the distribution of their work to Blanco y Negro. Their distribution network is nation wide, with more than 700 sales outlets; Blanco y Negro currently has a market share of over 30% of the national Dance segment. Discmedi Discmedi has interest in supporting the music in Catalan, through a precise record productions worthy and enable them to compete in the tough music market. Discmedi has performed alongside an intense distributing and extensive catalog that includes productions of other smaller Catalan companies, and exclusive representation of prestigious international labels such as American ones, Netwerk (UK) Touch (UK) or Biscoito Fino (Brazil). They are specialized in latino music, rumba, jazz, flamenco etc. In both countries, the majors are dominating in the charts against the independent labels. In Germany, we can see that top artists are signed on majors labels except big buzz artists such as Adele. Universal Music is promoting successful artists: Rolling Stones, Rihanna... in fact, pop music also. We have also Taylor Swift, One Direction (Sony Music), Pink and German artists. We can say that both countries is actually hit by the same kind of music, from majors signed international artists and that independent labels are present thanks to local artists. Those 2 countries are also the aim of hip-hop international artists.
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Analysis of one of the greatest independent labels: Cargo Records Cargo Records, is responsible for the interests of prestige and historic labels such as Sub Pop, Damaged Goods, Haldern Pop, Touch & Go, Side One Dummy, Hyperdub and many more. THE SHINS, Flogging Molly and Portugal The Man were launched into the charts, THE GASLIGHT ANTHEM succeeded in June 2010 in Germany with their Top 10 Entry even the biggest chart success in the history of Cargo Records. But former newcomers like ANTONY & THE JOHNSONS, SHOUT OUT LOUDS or BAND OF HORSES managed by reconstruction of the industry's breakthrough and the successful careers of established artists such as MATT ELLIOTT, PUBLIC ENEMY or HOLLY GOLIGHTLY continued.

Sales
In Spain, the recorded music market declined (-22%) in 2010 and no new local artists broke into the country's top 50-album chart compared with 2003.

 of music sales in Germany is generated from CDs, representing 1.098 billion (market share 73.8%). Christmas period enables CDs to be exploited at its maximum for gifts because this support is really appreciated from the customer. For example, sales of CD albums only in December 2011 compared to the same month last year increased 5.8%. Losers in recent years are the CD single (- 38.3%) and the music cassette, which declined of 44.4%.

Artists
We can list Spanish-talking famous singers such as Ricky Martin, Enrique and Julio Iglesias, Shakira, Juanes. These artists are signed on majors labels. Concerning Spanish known singers: Alejandro Sanz, David Bisbal, Chenoa, Estopa, Miguel Bose. Pablo Alboran for example, signed on EMI, is performing pop latino music. Juan Magan is a famous global DJ signed on Sony Music. It reveals the consumption of Spain in Pop, Latino music, electro and some reggaeton.

Artists from majors labels representing countries like USA (Bruno Mars), France (Zaz), Canada (Michael Bubl), Great Britain (Adele). But do German singers famous in the world? in Spain? Not really, we dont have big German celebrity singer because this language is really hard to promote outside Germany. We can list: Juli, Silbermond, Shne Mannheims or Rosenstolz as famous German singers. German classical is the most played german music in the world: Schubert, Beethoven etc. Success in the charts of artists such as Grnemeyer or Boris Becker, as well as newcomers Frida Gold, Tim Bendzko or Casper sales increased dropdown menu sub-national market and sales in this segment by 2.6%. Rammstein is among top artist actually in Germany and symbolizes the type of music listened in that country such as rock, metal, hard rock and also classical. He is signed in French label (XIII Bis Record), US label (Mercury) and Universal. Scorpions is also another international well-known band in Germany. They are signed in majors (EMI) and also American recording labels (Rhino Entertainment and RCA Records by Sony). We have also the international successful Tokio Hotel signed on Island Records and Universal Music, performing commercial hard rock. We can find famous German bands in Spain but hard to find Spanish artist in Germany.
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Piracy
Piracy is hitting jobs and investment, according to IFPI Digital Music Report. Digital piracy exists on a vast scale and is growing rapidly. File sharing on unlicensed peer-to-peer networks remains alternative forms of illegal distribution, illegal streaming sites and forums, are also a serious and growing problem. Piracy trends vary markedly by country, with independent research suggesting Spain and Brazil are among the markets most hit, with 45 % and 44% of active internet users respectively using unlicensed services monthly according to Nielsen Company. This compares with an average across the EU top five markets of 23%. Spain has the largest piracy music market in Western Europe. It shows around 35% of the web user in that country, are illegally downloading music.

Music Consumption
Actually in Spain, we can see that people are listening to Spanish-talking music in the top 10 except the presence of U2. In Germany, it is more eclectic: we can identify international artists more than local artists such Lady Gaga, Michael Jackson, Pink, Green Day, Depeche Mode, symbolizing pop rock.

Sales Volume
For a population of 46,7 million, a Spanish is consuming 5,27$ in music per year approximatively (245 900 000 USD total market). In Germany, a person is consuming 18,63$ per year in music. These figures are made of physical and digital sales.

Conclusion
Recorded Music is globally decreasing in the world because of digital distributions. German music market has evolved in 2011 but still stable (first time in 15 years with no reduction). CD remains, with a market share of 74%, the largest revenues in Germany. Winners are downloads that were double-digit growth.

Spain is among the weakest economic European country and this affects the music industry by reducing purchase power and so money to buy CDs. In Germany, the situation is better: Always in the top of European countries, digital music is becoming the future. Finding solutions for producing artists: independent labels try to find fund from people (crowdfunding) according to ElPais.com, the famous Spanish paper. It helps many projects to succeed, especially known artists who have decided to get off the treadmill industry oxidized, but also proposes a new model of relationship between artist and fan to be perfected.

SOURCES: Digital Music Report 2012. IFPI Record Sales Data 2012. IFPI Musikindustrie Zahlen 2010. Bundesverband Detlef Diederichsen, Andreas Lichtenhahn, Solicitor, Associate Partner of Sasse & Partner, Eckehart Rscheisen, aiLab Network, Hamburg, Dr. jur. Martin Schaefer, Solicitor, Associate Partner of Boehmert & Boehmert, Introdution to the German music market. GermanSound AG Promusicae: http://promusicae.es/english.html (Top 20 Recopilaciones, Top 50 Canciones, Top 100 albums, Top 50 radio musical) Rammstein website: http://www.rammstein.de + Wikipedia Alive AG Records website: http://www.aliveag.de/index.php?page=label&search=&sort=Interpret&typ=CD&abfangen=1&artlang=de&ca t=394561&id=89 Cargo Records website: http://www.cargo-records.de/de/labels.69.html Gema website: http://gemarecords.com IFPI statistics: http://www.ifpi.org/content/section_statistics/index.html Universal Music Espaa: http://www.universalmusic.es/es_ES/destacados Universal Music Germany: http://www.universal-music.de/home/alle-genres Sony Espaa: http://www.sonymusic.es Sony Entertainment Germany Gmbh: http://www.sonymusic.de/Musik Warner Music Espaa: http://www.warnermusic.es Warner Music Germany: http://www.warnermusic.de