Founded in 1898 by Emile Berliner as the German branch of his Berliner Gramophone Company. Based in the city of Hanover, the company had links with the US Victor Talking Machine Company and the British HMV, but severed ties to these companies at the onset of World War I.

In 1941, Deutsche Grammophon was purchased by the Siemens & Halske electronics company.

In 1962 Siemens formed a joint venture with Netherlands-based Philips to create the DGG/PPI Record Group, which was to include the PolyGram label. Deutsche Grammophon were owners of the Beatles' first record label, Polydor Records.

In 1987, Siemens sold off its interest in Deutsche Grammophon and Philips became the majority shareholder.

In 1998, Seagram purchased Deutsche Grammophon and Polygram. Since then, Deutsche Grammophon has been merged into the Universal Music Group, a division of Vivendi Universal.