This is how much money German musicians earned in 2021

1. Musician income in 2021

According to a survey by the German Social Security Fund for Artists (KSK), there were 55,455 employed musicians in Germany in 2021. Put simply, under German law, a musician is considered employed if they pursue a musical activity on a permanent, professional basis.

For 2021, the annual income of employed musicians is estimated by the KSK to average just 12,991 euros before taxes.

This survey includes both musicians and music teachers. Although the term "musician" is broadly defined in this survey, we deduce from the estimated value determined by the KSK (Artists' Social Security Fund) that musicians' earnings are rather meager. We were particularly interested in how employed musicians earn their music lessons .

2. Sources of income for musicians

Based on a report from the Funk Media Group, we have five key sources of income for musicians . The earning potential varies considerably.

2.1 Live music events as the main source of income

the online magazine Deutschlandfunk Nova, live music events are now the main source of income for many musicians. Previously, concerts and events were organized to promote physical recordings. Today, it's exactly the opposite.

The willingness to spend money on live music events has increased significantly. This is underscored by a study conducted between 2018 and 2021 by the Federal Association of the Concert and Event Industry. While fans were willing to spend an average of €45 on a live music event in 2018, this figure rose to an average of €55 in 2021.

According to Deutschlandfunk Nova, musicians earn an average of around one-third of their concert revenue. The remaining income goes to concert agencies, musician management, CD and record labels, and ticket vendors. Depending on the type and scale of a live music event, musicians can, of course, earn more in individual cases.

2.2 Streaming providers

Streaming accounts for an ever-increasing share of the music industry. According to the Association (BVMI) , streaming revenue generated 63.4 percent of music sales in 2020. However, the earning potential for musicians is low. Spotify, for example, pays its artists only one euro for 254 streams. A monthly payout of 1,000 euros would therefore require 254,000 streams.

Furthermore, Spotify's compensation is proportional. A musician's streams are therefore calculated in relation to the total number of streams. Consequently, established musicians who already have a large reach and a loyal fanbase benefit most from streaming.

A significant number of musicians can therefore use streaming services to generate attention and reach. But not to build a sustainable income from them.

2.3 Merchandise items

In order to diversify their income streams, some musicians also rely on the possibility of selling their own merchandise.

However, exact sales figures are difficult to determine, as musicians' income depends heavily on which products are offered and in what quantities they sell them to their fans.

A whole range of products can be sold for this purpose. These could include T-shirts , sweaters, mugs, necklaces, or similar items. This depends entirely on the creativity and entrepreneurial spirit of the musician. Trading in merchandise can definitely be worthwhile. These items are inexpensive to buy and can be resold to loyal fans for a considerable profit.

However, a prerequisite for this type of business is that the musician can demonstrate a certain number of loyal fans who are willing to pay for it.

2.4 GEMA & GVL

Both GEMA and GVL are collecting societies for musical works . Music authors and music publishers can join GEMA. GEMA represents the remuneration claims of its members and collects license fees from those who wish to use the music for their own purposes.

This applies, for example, to live performances, the sale of recordings, online broadcasts, radio or television broadcasts, and public events. The remuneration paid to the copyright holders depends primarily on the usage.

The goal of GVL is to improve the situation of performing artists (singers, musicians, dancers, etc.) and to achieve fair compensation for the use of their productions. The principle of remuneration is fundamentally similar to that of GEMA: the more frequently the recordings are used, the higher the compensation. Therefore, membership in these collecting societies can have a positive financial impact on musicians.

2.5 Physical sound carriers

According to the BVMI (German Music Industry Association), physical media still accounted for 28.5 percent of music sales revenue in 2020. However, according to the music magazine Delamar, around 4 percent, indicating that CD sales are hardly profitable.

We don't know the exact age of those who buy physical music media. However, we assume that older generations in particular still enjoy buying CDs. In our estimation, younger fans and subsequent generations are less likely to buy a CD by their favorite star.

We therefore do not see the sale of physical recordings as a very profitable source of income for musicians, but rather as an opportunity to promote their own events and concerts.

3. Outlook

Our research leads us to conclude that the average musician in Germany faces considerable financial hardship. Currently, we see the most promising sources of income for musicians in live music events and the sale of merchandise.

With Scoopas, we want to create a solution for the financial challenges faced by musicians. Scoopas provides a live streaming platform where musicians earn money by streaming live concerts and events . Revenue can be generated by selling concert tickets, promoting their own merchandise, or receiving support from their fans through donations.

Are you a musician or music fan? Then feel free to check out our platform at scoopas.com . The platform will go live later in 2022.