The compact disc and the record will not experience a rapid death in Germany, according to Sony Music Germany’s chief executive, Philip Ginthör.
“The CD will never disappear completely, neither will vinyl records,” said Mr. Ginthör, whose is also in charge of Austria and Switzerland. “Every form of music is complementary, this is not a case of either-or,” he told Handelsblatt, adding that physical products still make up “more than half” of his company’s revenues.
Sony Music predicts, however, that physical recordings will slowly lose importance in the German-speaking market in the next 10 years. “The new main form will be streaming,” Mr. Ginthör noted, who foresees the share of CDs in music sales shrinking to just 10 percent by 2028, with vinyl making up another five percent of the revenues, leaving all the rest to streaming.
Sony Music achieved $3.65 billion, or €3.43 billion, in sales worldwide last year. The subsidiary of the Japanese electronics giant is number two behind Universal Music in Germany with a market share of almost 25 percent.