Thursday, January 26, 2023

Vinyl sales are slowing down big time

People lined up outside a record store for Record Store Day

From Ted Gioia: Did the music business just kill the vinyl revival?

"Just a year ago, the industry was bragging about a vinyl market that had doubled in size in a single year. In just 12 months, demand had increased from 21.4 to 41.7 million units.

"But then in 2022, the growth rate collapsed from 95% to 4%. That’s not a slowdown—that’s slamming on the brakes right before you hit the brick wall.

"And if it wasn’t for Taylor Swift, the vinyl market would have actually declined in 2022. This one artist did more to support vinyl sales than the much hyped “Record Store Days."

He also highlights that half of vinyl buyers don't own a record player. So those Taylor Swift LPs are memorabilia.

Essentially what his article says is new vinyl sales have stalled, and the record companies haven't been doing anything to increase capacity when seeing the previous rapid growth in vinyl sales, instead relying on technology from the 1950s, and putting up the prices. One could argue that the record companies are more focused on streaming as that's a bigger revenue opportunity. Go have a read.

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