Vinyl is crushing CDs as music industry eclipses cinema, report says

Retro reconnaissance: Vinyl record sales are on track to surpass CD sales, marking a significant shift in the music industry. A recent report by Will Page, Spotify’s former chief economist, reveals that vinyl is making a comeback, with projected revenues of $1 billion in the US by 2024. This resurgence is fueled by increased production capacity and streamlined shipping processes from major European players in the vinyl manufacturing sector.

According to the Recording Industry Association of America, vinyl sales have already exceeded CD sales, with 43 million vinyl records sold in 2023 compared to 37 million CDs. This marks the second time since 1987 that vinyl sales have outpaced CDs.

Page’s analysis also highlights the broader revival of the music industry, with the value of music copyrights and performing rights nearly doubling from $25 billion in 2014 to $45.5 billion today. In contrast, the movie industry has experienced a decline in global box office revenues, falling from $41.9 billion in 2019 to $33.2 billion.

Streaming has emerged as the primary revenue driver for the music industry, surpassing traditional radio and broadcasting platforms. Live music performances have also become a top earner, surpassing public performance licensing fees paid by commercial establishments to play music.

Image credit: Pivotal Economics