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Global vinyl sales to hit $A1.4 billion

AAP logoAAP 6 days ago

Global sales of vinyl records will break through the $US 1 billion ($A1.4 billion) mark for the first time this century, a report said.

The LP's remarkable revival will continue this year, with more than 90 per cent of revenues coming from sales of new and second-hand discs, according to Deloitte.

It will be the seventh year on the bounce that sales of 12-inch records have recorded double-digit growth, pushing their share of the physical music market to 18 per cent.

Paul Lee, Deloitte's head of technology, media and telecoms (TMT) research, said vinyl's resurgence more than 40 years after its peak was a phenomenon.

"The ubiquity of music streaming services means that music has never been more accessible, portable and readily available for the consumer.

"Yet, despite that, consumers are choosing to buy something tangible and nostalgic and at a price point that provides record companies with significant revenues."

Around 40 million new vinyl records are expected to be sold this year, pulling in $US800 million to $US900 million in sales.

The report said that 10 per cent of global revenues will also come from the sale of new turntables and accessories.

"Vinyl has a future in music, and an attractive one from a financial as well as an aesthetic perspective, but it is not, and is unlikely ever to be, its major growth or profit engine," Lee added.

"Music's future, both from a revenue and consumption perspective, is all about digital, and this is where the brunt of the industry's focus should be."

More than 3.2 million LPs were sold last year, according to separate figures published by the British Phonographic Industry last week, a rise of 53 per cent on 2015 and the highest annual total since 1991.

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