Vinyl proves it’s got more than just nostalgia up its groovy sleeve.
Vinyl records outstrip streaming services in growth, spinning up a 17% revenue increase compared to streaming’s 4% in the first half of 2024. This data, from the RIAA mid-year report, puts vinyl at 75% of all physical format revenues, also outselling CDs for the fourth year in a row.
Vinyl Sales Surge Past Streaming Numbers
Streaming remains the dominant force in the music industry, accounting for 84% of total revenue. But, vinyl sales are growing much faster.
According to the Recording Industry Association of America (RIAA), vinyl revenue surged by 17% in the first half of 2024, reaching $740 million. This growth rate significantly outpaces that of streaming, which saw a more modest 4% increase to $7.3 billion.
But, this vinyl comeback is part of a larger trend in physical music sales.
In fact, vinyl now represents 75% of physical music revenue, pushing total physical music sales to $994 million, which is 13% more than last year.
Reasons Behind Vinyl’s Resurrection
Several factors have fueled vinyl’s comeback, with nostalgia playing a key role.
Vinyl records offer a link to the past, attracting listeners with their retro charm. That’s why the analog sound, often seen as more authentic, appeals to both older collectors and younger generations discovering vinyl.
Record Store Day has also been another major factor.
Since its start in 2008, this yearly event has driven huge sales by celebrating independent record stores and offering special vinyl releases. Collectors and casual fans alike rush to stores for limited-edition albums, boosting the vinyl revival.
Next to that are aesthetics and collectability, which also add to vinyl’s appeal.
For many, vinyl is an art form. The album covers, liner notes, and even the smell of the records provide a sensory experience that streaming lacks.
Some vinyl records are even infused with unique scents, adding another layer to their appeal. Some also come with extras like posters, stickers, and calendars, making them more collectible.
Collectors also enjoy hunting for rare records and limited pressings, with the thrill of finding hidden gems adding to vinyl’s charm. This tangible, multi-sensory experience is very different from digital formats. So, it attracts people who are tired of digital and want a more physical, less high-tech music experience.
Despite its drawbacks, the pandemic also gave vinyl another boost. With lockdowns in place, many people took up record collecting as a new hobby.
Celebrity Influence on Vinyl Sales
Big-name artists like Taylor Swift have been a major force behind vinyl’s revival.
Swift’s strategy of releasing exclusive vinyl editions—with different colors and unique artwork—has caught the attention of fans and collectors, boosting the demand for vinyl. Her impact is so significant that five of her albums were listed among the best-selling vinyls in the US for the first half of 2024.
But, Swift isn’t the only one making waves. BTS’s Suga also saw a huge jump in vinyl sales with his solo album D-Day.
These releases show how artists with dedicated fanbases can drive big sales for vinyl, even long after the album’s original release.
Other Music Metrics in 2024
Even with the rise in vinyl sales, streaming remains the biggest revenue generator, with paid subscriptions making up 78% of the total and bringing in $5.7 billion.
The format’s reach continues to expand, with the average number of streaming subscriptions growing by 3% to a record high of 99 million, up from 96.5 million in 2023.
Ad-supported streaming, like YouTube and Spotify’s free versions, also grew 2%, reaching $899 million and accounting for 10% of all music revenue.
Yet, not all digital formats are thriving.
Limited-tier subscriptions, such as those from Amazon Music and Pandora Music, dropped by 4% to $503 million. And, digital downloads continued their long-term decline, now accounting for just 2% of US recorded music revenues in 2024.
The industry also saw changes in other revenue streams. Synchronization royalties, derived from the use of music in media like TV shows, movies, and commercials, experienced a 9.8% decrease to $200.9 million.
Despite this dip and the variations across different revenue streams, the overall picture remains positive, with total revenues at wholesale value growing by 3% to a record high of $5.5 billion.