It’s still a lot better than streaming!
Buying a $24 vinyl record isn’t just about the music. By making a purchase, fans support a network of independent stores, distributors, manufacturers, labels, and artists.
Ever wondered exactly how your hard-earned cash is split between everyone? An independent record store owner breaks it all down.
Breaking Down the Cost of Vinyl Records
According to Terry Cole of Colemine Records in Toledo, Ohio, buying a physical record is still one of the best ways for fans to show appreciation for the music.
Cole recently analyzed the cost of Kelly Finnigan’s vinyl in an Instagram reel, backing up his statement.
Turns out, when you purchase a $24 record at the record store, your money gets divided among several players:
- The store keeps $8.49, but $1.50–$2 goes to credit card fees and shipping, reducing their profit.
- The distributor takes $3.10, with similar reductions for fees.
- Manufacturing costs are about $6.30.
- The remaining $6.37 is split evenly between the record label and the artist, leaving $3.19 for each.
It’s obvious that independent record stores continue to play a crucial role in the music ecosystem.
According to Cole, buying one physical record has a much larger financial impact than streaming.
Vinyl vs. Streaming: Supporting Artists
Streaming services like Spotify provide convenience but little income for artists.
On Spotify, it takes around 300 streams to earn $1, or over 300,000 streams to make $1,000.
Physical vinyl offers a more direct way to support musicians, avoiding low royalty payouts and algorithm-driven platforms.
Vinyl buyers often appreciate more than the music itself. Tangible ownership, limited editions, and nostalgic packaging are key factors.
Artists also earn better margins from vinyl sales, though high production costs limit independent musicians.
That’s why, only 12.8% release their work on vinyl.
Economic Context: Price Trends and Consumer Behavior
Vinyl prices rose by 25.5% from 2017 to 2023, outpacing general inflation.
While pandemic-era supply chain issues have improved, costs remain high due to premium packaging and special editions like colored vinyl.
Younger buyers are now purchasing fewer records per visit due to tighter budgets.
Michael Kurtz, co-founder of Record Store Day, noted that these consumers “used to buy two or three records; now they buy one or two.”
Affordable catalog titles like Michael Jackson’s Thriller or Fleetwood Mac’s Rumours are often more affordable than new releases, helping offset price increases.
While you can find a Thriller vinyl for under $25, Post Malone’s 18-track F-1 Trillion vinyl, for instance, costs $46.00 on his online shop.
Taylor Swift’s highly-anticipated The Tortured Poets Department: The Anthology vinyl, which features 35 tracks and came out on November 29, costs $59.99.
Despite these challenges, vinyl’s resurgence shows no sign of slowing.
Sales are expected to generate $5.2 billion for artists in 2024 — the highest in over three decades.
For music fans who want to support artists directly, vinyl remains a powerful choice.