Physical music is still a hot product around the world, and while digital continues to grow, physical is king. What I find interesting is how the physical retail market plays out in specific regional markets. Take Germany for example. According to the global trade group IFPI and their report “Recording Industry Numbers in 2011”, resilience in the physical sector is one key reason why Germany has overtaken the UK to become the third largest music market in the world. Physical sale still account for 81% of music revenues (2010) in Germany… the highest proportion in Western Europe after Portugal. This compares to a European average of 73%. Digital sales have grown steadily in Germany over the years, but there is lots of room for growth, as there is globally.