To many people, the vinyl record may seem like an outdated blast from the past.
But new data shows that vinyl is quickly becoming one of the most popular forms of music.
For the first time since the 1980s fell out of favor, gross revenues from vinyl will overtake CDs.
A report Research by former Spotify economist Will Page shows that by the end of 2024, records will earn more than $1 billion (£787 million) for labels in the US alone.
Mr Page wrote: ‘Globally, vinyl will soon overtake CDs – a true sign of the format times.’
However, it’s not the superior sound quality of vinyl that’s driving this trend, as research has shown that half of record buyers don’t even own a turntable.
Instead, experts suggest that fans buy vinyl as a form of merchandise that gives them a sense of connection to the bands they love.
This year, major artists like Taylor Swift, Adelle and Billy Eilish have all jumped on the trend and released multiple, expensive physical variants of the same albums.
Gross revenues from vinyl sales have surpassed CDs for the first time since the 1980s, amid strong interest in the retro music format (stock image)
Despite numerous disadvantages compared to digital, vinyl’s popularity has only increased in recent years as fans seek a more engaging listening experience
Although vinyl records were considered virtually obsolete after the rise of CDs and digital streaming, the format has seen a stunning resurgence in recent years.
To enrol Billboard Prosays Mr Page that vinyl sales have ‘exceeded expectations’ over the past eighteen years.
Last year, record label revenues grew 12 percent, mainly due to a 10 percent increase in the value of streaming.
However, the new report shows that vinyl grew faster than streaming in percentage terms, up 15.4 percent from the year before.
Over the past two years, this once-outdated format has accounted for more than a tenth of all record labels’ revenues.
In 2019, industry analysts hailed a vinyl revival as sales reached $504 million (£397 million), the highest figure since 1988.
The value of the vinyl industry, which is expected to reach $1 billion by the end of the year, has more than doubled in five years.
As Mr Page notes, this is happening despite significant ‘bottlenecks’ in the supply of physical documents.
Records may be considered outdated, but their sales have exceeded expectations in each of the past 18 years. A new study estimates they will rake in $1 billion (£787 million) for record labels in the US alone this year (stock image)
As the popularity of vinyl has exploded, factories are only just beginning to catch up to the growing demand.
In previous years, this caused some labels and artists to experience months of delays in getting their albums to press.
However, that hasn’t stopped major artists from jumping on the vinyl bandwagon.
Last year, Taylor Swift topped the charts as the biggest artist on vinyl, selling 3.4 million records in the US – representing seven percent of all sales.
As part of her winning strategy, Swift releases multiple variations of the same album, which die-hard fans rush to collect.
As of this year, Swift has released 36 variants of her album ‘The Tortured Poets Department’, seven of which are on vinyl.
Meanwhile, Billy Eilish released eight vinyl color variations of her album Hit Me Hard and Soft, which was released this year.
Similarly, Adele was criticized by fans this month for releasing a limited edition vinyl box set worth $349 (£275).
The vinyl revival was driven by superstars like Taylor Swift, who released 36 variants of her album ‘The Tortured Poets Department’ (pictured), including seven vinyl records.
However, despite the often exorbitant prices, fans are more than happy to purchase something that gives them a sense of connection to their favorite artist.
While simply tapping an album on Spotify can be useful, the huge increase in sales of physical formats suggests fans are looking for more.
That’s fantastic news for artists and record labels who can make significantly more profit from record sales than from digital streaming.
Mr Page estimates that for a label to make the same money from a digital album as it does from a vinyl record, a customer would have to stream the album without sleep for almost two weeks straight.
Yet the report also reveals some other major trends in the music world.
Over the past decade, Mr. Page has kept an eye on the value of music copyright and performance rights.
These are the legal permissions that allow artists and record labels to make money when a song is played on the radio or streamed online.
This year’s report shows that the value of music reached a record high of $45.5 billion (£35.7 billion) in 2023, up from $25 billion (£19.7 billion) in 2014.
This year, economist Will Page found that the value of music copyright and performance rights exceeded the value of cinema. Music was worth $45.5 billion (£35.7 billion) in 2023 (right), compared to just £31.6 billion (£24.9 billion) in 2019
Next year, Mr. Page predicts that the value of music copyrights will double within a decade.
This means that music is now a bigger business than film, which is valued at just $33.2 billion.
While cinema revenues have recovered since the pandemic, box office sales peaked in 2019 and failed to keep pace with music’s meteoric rise.
Mr Page says: ‘If you had suggested when I first did this exercise in 2015 that music could overtake the cinema, you would have been laughed out of the room.
‘At the time, the silver screen towered over Spotify and Netflix.’