Music consumers of 2006 underestimated their own desire for nostalgia, for premium sound - vinyl is the best representation of a recording - and for a closer connection to artists. Digital music was such a refreshing change from CDs that many consumers hadn’t yet realized its shortcomings. That appears to be true - vinyl buyers are heavy music consumers across all formats. It also highlighted that consumers wanted a special experience and bonus material, especially for their favorite artists - a forecast that has come true in the form of deluxe product, and reflected in YouTube’s success in capturing music fans.īut the research could only measure consumer sentiment at the time. The research said these products would not compete with digital. The predictions that these products would have only a niche following also turned out to be true. What was learned from the research? Well, it did conclude that there was no substitute for the CD, and that’s been true. With sales on track to surpass 8 million units, this year’s growth will surpass 2 million units. In unit terms, vinyl sales grew 1.5 million units last year. And rather than slow down, sales are actually gaining momentum. Since the breakout year in 2008, vinyl albums sales increased 223 percent to 6.06 million units last year. It’s spawned offshoots in five European countries, Canada and Mexico, and a sister event on Black Friday. Record Store Day has gone on to become a major event in music retail. Press releases and social media started promoting the born-again format. All of a sudden, says Kurtz, record labels could press 3,000 to 5,000 copies of a release on vinyl and have confidence it would sell. Labels had a renewed confidence in vinyl. The second installment had more than 100 releases. A modest start, but Kurtz had “never seen so much excitement.” With the help of Record Store Day, vinyl sales grew 90 percent that year with the largest single-year unit gain until 2013. The first Record Store Day, in 2008, had about 10 releases, says Kurtz. After shrinking 30 percent in 2005 and remaining flat in 2006, vinyl sales grew 15 percent in 2007, according to Nielsen Music. Something was indeed happening with vinyl. More customers are asking for it,” says Kurtz. “Mainly because Eric Levin at Criminal said something is afoot. When independent record stores - within the Alliance of Music Stores coalition - were presented with the idea of Record Store Day, some wondered why stores would market to the smallest group of customers. What happened next gets to the heart of NPD’s research. “It was an underground held up by DJs, punk and indie rock,” says Billy Fields, the vice president at Warner Music Group that oversees vinyl for the company. Some major labels released catalog albums, and the occasional new release, on vinyl. Many independent labels consistently released titles on vinyl in the early- to mid-2000s. It affected the business side of things because financial support shifted” from physical to digital formats.Įven though the flow of vinyl releases slowed to a trickle, records were not gone from the market. The industry was excited about digital music, says Michael Kurtz, co-founder of Record Store Day. The Musicland Group, owner of chains such as Sam Goody, filed for Chapter 11 bankruptcy protection. There was a constant stream of articles about record stores closing around the country. The notion that vinyl records would reignite passion for music seemed far-fetched back to 2006. What happened to make vinyl the fastest-growing format, albeit still not the mainstream product CDs once were? Record Store Day. The idea of a premium product for a broader audience was dead in the water. Only 5 percent of respondents said vinyl was their favorite of the ideas tested. More people expected to pay less for vinyl than were willing to pay a premium. It didn’t particularly appeal to any important fan segments. Vinyl concepts were tested in 2006 next to early versions of connected CDs and CD/DVD hybrids. This version of vinyl included a digital download card that would allow the buyer to download the album’s digital tracks. Of all the products tested between 20, vinyl tested the worst. Vinyl Sales Cross 1 Million Sales Barrier for First Time In Almost 20 Years
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