We love vinyl. While that’s no surprise, what is surprising is that vinyl sales every year are still increasing. This got us wondering, with scrutiny on streaming platforms such as Spotify being stronger than ever, are artists making more money through the sales of their plastic albums? Our latest research finds that yes, artists are expected to make over $5.2 billion from vinyl sales in 2024, the most since 1990. This is following a 113% surge in sales in the last 3 years.
UK vinyl sales have increased in sales for the 16th consecutive year, with sales reaching a new 33-year high in 2023, and US purchases rising by 21.7% in just the first half of last year.
Examining available vinyl revenue data from 2020-2022, the study reveals the US has seen a huge 98% increase, with the UK displaying a healthy 15% surge in sales. Analysing the data, 2024 sales are projected to nearly double the last 3 years' $3.1 billion, with artists predicted to make a whopping $5.2 billion.
It seems that music fans are ditching album streaming for vinyl, with 70% of most skipped albums on Spotify topping vinyl charts in 2023, highlighting a trend of consumers wanting to enjoy the sound of vinyl as well as give back to the artist.
“Consumers love that they're giving directly to the artist when buying vinyl compared to streaming music on Spotify. Vinyl also offers a more sustainable and ethical way to support artists, as it avoids the complex algorithms and low royalty payouts of streaming platforms”. Peter Fealey - Founder of A2D2
The Digital Streaming Pay Gap
Despite the convenience of streaming, artists struggle to earn a living. A recent study by the Union of Musicians and Allied Workers, reveals it takes 250 streams on Spotify for an artist to make just $1. This means an artist needs over 250,000 streams to earn a mere $1,000. Highlighting these concerns, Uruguay recently banned Spotify, demanding "fair and equitable remuneration" for creators.
Independent Artists Take The Biggest Hit
Niche and lesser-known artists now face a double whammy - low streaming payouts and limited access to vinyl sales. Despite 2023 vinyl sales in the UK reaching their highest level since 1990, a recent study by Ditto Music found only 12.8% of independent artists released music on vinyl, highlighting a gap in their earning potential on this format as well.
Sources:
- https://press.dittomusic.com/only-128-of-independent-artists-have-released-music-on-vinyl-despite-a-rise-in-physical-sales
- https://www.statista.com/statistics/284337/music-retail-sales-revenue-in-the-united-kingdom-uk-by-format/
- https://www.riaa.com/wp-content/uploads/2023/03/2022-Year-End-Music-Industry-Revenue-Report.pdf
Methodology:
- For each year, figures were subjected from the previous year's value to the current value. Each year's difference was divided by the previous year's value and multiplied by 100
- Calculate the 2023 base value: We applied the assumed 98% growth rate from 2022 to its total sales figure (1.2244 billion * 1.98 = 2.4243 billion).
- Forecast based on 2023 base: We simply assumed the same 98% growth rate would continue in 2024 and multiplied it by the 2023 base value to arrive at the projected 2024 figure (2.4243 billion * 1.98 = 4.7902 billion).
- Data can be accessed here.