Vinyl Outselling CD


I am posting this article so that it will be in the Audiogon Forums database. I was looking for it the other day on here and I couldn't find it.

I am not posting this so we can debate the merits of vinyl vs. cd. If you think digital is superior then that's great. As long as everyone is enjoying the music that is all that matters.

Here is the article:

"BESET by digital piracy and increasing customer reluctance to pay for CDs, the music industry is fighting back with its latest technology – black vinyl records.

Music labels and high street retailers are busy turning back the industry’s clock to a time not only before internet song downloads, but also before CDs or even audio cassettes. The irony is that the vinyl revolution is being led by teenage consumers who are prepared to stand in line for the latest 45 rpm single or 331/3rpm LP (long-playing record) in much the same way that their parents, or in some cases their grandparents, did.

According to Rob Campkin, the head of Music at Virgin Megastores, vinyl is now outselling CDs when it comes to the latest records.

“Up to 70% of sales of new releases are vinyl. The fans of popular new rock bands like Arctic Monkeys and The Raconteurs prefer vinyl to CD,” said Campkin. “When the Raconteurs’ latest single was released, 80% of high-street sales were for seven-inch vinyl and only 20% were for CDs.”

“We are not just talking about vinyl singles but also about albums – the format is just continuing to grow,” said HMV spokesman Gennaro Castaldo.

The trend is born out by figures from record industry body, the British Phonographic Industry (BPI). According to the BPI’s findings, vinyl records are a technology that has come back from the brink of extinction to take the industry by storm. Between 2001 and 2005, annual sales of vinyl single in the UK rose sixfold to over 1m, accounting for 14.7% of all physical singles sales in 2005, up from 12.2% in 2004. The industry expects vinyl figures for the current year to be even more dramatic.

The vinyl revolution has caught many of the big music labels napping. It is the smaller independent labels who have been able to snap up successful new bands. This has left big players in the industry, such as EMI, scratching their heads and wondering why teenagers are embracing a technology the music industry had dismissed as outdated and obsolete before most of them were born.

Record labels like EMI are finding themselves losing the next generation of music stars to upstart labels like Domino Records, which handles hit bands Franz Ferdinand and Arctic Monkeys, and Rough Trade, which handles The Strokes and rock music’s latest human disaster area, Pete Doherty.

According to Virgin’s Campkin, the smaller independents have one key advantage over the larger labels as far as the artists are concerned.

“The independent labels will release material on vinyl where the more established are more reluctant to do this,” said Campkin.

One reason for this situation is believed to be that the mainstream music industry has forsaken vinyl to the extent that there is now no big vinyl processing plant in the UK. This means that the discs must be pressed offshore and that a large number of new vinyl recordings are limited editions that quickly become collectors’ items. This type of operation, where limited pressings are carried out by factories in other countries, is better suited to the independent labels than to the more established players.

Virgin also reports a trend where fans will buy the CD when it is released and will wait weeks or months until the vinyl release before buying that as well. Some vinyl albums, such as the last White Stripes release, continue to sell consistently for months.

In addition to the new releases, retailers Virgin and HMV report a growing demand for classic pop records on vinyl from artists such as The Rolling Stones and Bob Dylan. Market research has shown that these new releases of older material are often being bought by younger customers, just as older “baby boomers” are increasingly augmenting their collections with LPs from modern artists such as the White Stripes.

“The original baby boomers, who are now in their fifties, are not only buying classic pop records by the Beatles or the Stones but are also adding new artists from the independent labels to their collections,’ said HMV’s Castaldo.

According to Virgin’s Campkin, one major reason for the renewed popularity of vinyl is its collectability, which operates on two levels. On one level, collectability means seeing the value of a 99 pence (E1.43, $1.73) single CD increases 50-fold in a single year.

“The first 7-inch single release from Arctic Monkeys, which came out a year ago, is now selling on eBay for £50-£60,” said Campkin.

He added that the second sort of collectability is the desire to own a record collection of one’s own.

“Vinyl is far more iconic in this respect,” said Campkin. “The record sleeve offers the consumer art work as well as information about the performers and song lyrics.”

Some well-known music figures believe that the industry did itself irreparable damage when it switched to CDs 20 years ago.

Roger Daltrey, lead singer of 1960s supergroup The Who, said in a recent interview: “The record labels sold everybody a white elephant with the CD. They pushed it over as being this wonderful musical formula that you can play forever that sounds better and is scratch proof. None of it was true; CDs do not sound as good as vinyl and they last for five minutes.”

Like other artists of his generation, Daltrey believes that pop music generally sounds better on vinyl as so much of it was originally developed to be played on the vinyl format rather than on digital equipment. Vinyl enthusiasts say that the bass and vocals on most songs cannot be accurately reproduced on a compressed digital format and that the music inevitably loses something by being reduced to what is essentially just a binary computer code.

Daltrey also believes that record sleeves are a key part of the attraction of vinyl.

“We threw away an art form that was so much more than the record,” said Daltrey. “The size of the cover was perfect for art work. Sometimes the covers were more important than the music. The more fingerprints you got on it, the more it was a part of you. With a CD, you start with a nice plastic box and end with a scratched plastic box; it has no character whatsoever.”

Campkin said: “I think the record sleeve is paramount. With a vinyl album you feel you have spent £10-£15 on something tangible that will last.”

Daltrey also believes that it was the switch to CDs that ultimately led to the music labels’ horrendous problems with digital music piracy.

“The problem with the CD is that if you can copy what is on it for nothing, as you now can, why would you want to buy it?”

Music retailers such as Virgin and HMV are also coming to the conclusion that consumers want a return to a more tangible format. They fear that the logical conclusion to the evolution of digital music is a world without high street music retailers where fans do everything over the internet and download all their music via a PC.

Virgin plans to opens a new 25,000 square-foot Virgin Megastore in Manchester’s Arndale shopping centre that it hopes will transform the way consumers perceive record stores. More space than ever will be dedicated to vinyl records and customers will have access to turntable and

listening booths in the same way that teenagers did in the 1950s and 1960s. The store will also offer “chill-out” areas with armchairs and sofas where customers can relax and listen to music.

Virgin plans to use the same formula in other stores in the hope that it will be able to persuade teenagers to see the megastores as social venues as much as music shops. The company hopes that the strategy will enable it to offer consumers enough added value to head off growing competition from cut-price supermarket CD offers and internet download services.

The music retailers do not believe that vinyl will ever entirely replace digital music formats. Instead, they predict that the same fans will often subscribe to both formats by downloading music for their MP3 players and PCs but will also wait for the vinyl release to add that to their permanent record collections.

Virgin believes that digital music downloads may not be as big a phenomenon as some the industry anticipates and will account for no more than 10% of the overall market by 2009 and that the appeal of vinyl will continue to grow to shoppers who want to take home something tangible and lasting.

Those industry players which do not become part of the vinyl revolution will see their market share decline as smaller nimbler players snap up the new artists and establish brand loyalty with an increasingly vinyl-hungry record buying public."

Back to top
nrostov
First I think it's hysterical that some people are upset by this article. It couldn't be true right? God forbid. Vinyl has become the Mac of the music industry. Sorry guys us weirdo's with our lp records, big graphics, and record cleaning machines are here to stay. Given some peoples response to this post I support you if you need therapy to deal with this. :)

Actually , my prediction is that within the next five to ten years CD's will make up an insignificant portion of music sales. CD sales have been declining for years and 2007 is no different. This has nothing to do with quality, vinyl, etc. Blame it on the IPOD. I think we are going to be in a situation where most people will download their music.

Oddly enough this could leave us with a marketplace where vinyl outsells CD's but downloaded music outsells them both.
I was told the other day by an old opera fan that Caruso records are selling like hot cakes all over again, only thing there still in 78 mode.So now everyone has to go out and buy an "Edison victrola" player to play them on. Do you think it would be agood time to buy stock in the company making them.
The article aside, I would like to thank Uraniumcommittee. I believe this is the first time I have seen flapdoodle and puke in the same reply.
The author of this seems to be confusing larger sales volume with larger sales growth:
"...accounting for 14.7% of all physical singles sales in 2005, up from 12.2% in 2004..."
Presumably, the other 85.3% was on CD.
It could even be the case that vinyl sales are declining, but CD sales are declining faster, resulting in greater market share for vinyl.
How many non-audiophiles do you know who are buying new vinyl? How many nwe records do you see in stores compared to how many new cds you see in stores? How many cars come with record players? How many people do you see at the gym with a record player strapped to their shoulder?

It may be, as Nrostov says, possible that vinyl could outsell CD in the future, but they would both be small niche markets, compared to the download industry. The only way we are going to see a return to big record stores springing up all over the country is if someone attacks the country with some kind of sci-fi EMP device and destroys all solid state electronics. If I'm wrong, I'll eat my socks!
Honest1, earlier in the article it suggests that vinyl is outselling CDs on new releases on an outright basis in some cases.

The thing to note is also that DJ-ing has become a VERY popular hobby for young people these days. It's also a star career. Being able to "scratch" is viewed as a strong skillset, and something of an accomplishment to do it well.

There are more than a dozen mostly-vinyl stores within a 10 minute walk from my apartment, but they are almost all inhabited by young people looking to find samples from the discs.
More to discover