A2D2, a firm linking analogue music devices with smart speaker systems, projects that artists are set to earn more than $5.2 billion from vinyl sales in 2024, a result of a 113% sales increase over the past three years. UK vinyl sales have seen a 16-year growth streak, hitting a 33-year peak in 2023, while US sales saw a 21.7% rise in the first half of the previous year alone.
A review of vinyl revenue data from 2020-2022 shows a massive 98% rise in the US, and a solid 15% increase in the UK. Based on these figures, 2024 sales are expected to almost double the previous three years' total of $3.1 billion, with artists potentially earning a staggering $5.2 billion.
This information emerges as A2D2 reports a shift from album streaming to vinyl among music fans, with 70% of the most frequently skipped albums on Spotify leading the vinyl charts in 2023. This suggests a consumer preference for the vinyl sound experience and supporting artists directly.
Peter Fealey, A2D2 Founder: “Customers appreciate the direct support to artists when purchasing vinyl, as opposed to streaming music on Spotify. Vinyl provides a more sustainable and fair way to back artists, bypassing the intricate algorithms and low royalty payouts of streaming platforms”.
The Streaming Pay Disparity
Despite streaming's convenience, artists find it challenging to make ends meet. a recent Union of Musicians and Allied Workers study reveals that an artist requires 250 Spotify streams to earn just $1, equating to over 250,000 streams for a modest $1,000. In light of these issues, Uruguay has recently banned Spotify, calling for "fair and equitable remuneration" for creators.
The Biggest Blow to Independent Artists
Emerging and niche artists are now facing a double setback — low streaming payouts and restricted access to vinyl sales. Even though UK vinyl sales in 2023 were at their highest since 1990, a recent Ditto Music report found that only 12.8% of independent artists have released music on vinyl, indicating a gap in their earning potential on this platform.
Sources:
Ditto Music: https://press.dittomusic.com/only-128-of-independent-artists-have-released-music-on-vinyl-despite-a-rise-in-physical-sales
UK: www.statista.com/statistics/284337/music-retail-sales-revenue-in-the-united-kingdom-uk-by-format/
US: www.riaa.com/wp-content/uploads/2023/03/2022-Year-End-Music-Industry-Revenue-Report.pdf
