Streamers Buy Music Too

While nearly everyone in the music industry complains about the decrease in sales, a new study by the British Phonograph Industry (BPI) and the Entertainment Retailers Association has found that streaming may actually be at least partially responsible for whatever sales there are. Of course, this study was conducted in the UK, but it may be significant nonetheless.

The study found that streaming was a way for users to sample music and artists before actually buying. In fact 44% of the respondents that paid to stream said that their album buying habits have either increased or remained the same.

66% of the music fans surveyed also obtained their music from multiple sources, meaning streaming and CD or vinyl. The general consensus was that users streamed to discover, but actually purchased something they fell in love with.

Surprisingly, the results reflected not only older music fans but younger consumers as well, with the tastes of millennials falling in line with baby boomers in this area.

Also, about 33% of respondents would prefer a "one stop shop" where they could stream content, but also buy the CD on the platform if they wished as well.

Finally the survey found that around 40% of all albums are purchased in the final quarter of the year, with about half of these coming at Christmas. CDs and vinyl records are still prime gifts.

It just goes to show that there's still life in the CD side of the business, which may very well be around for longer than industry analysts predict.

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Putting Vinyl Sales Into Perspective

Vinyl gets a lot of hype these days and you have to admit that it's a great success story. Here's a format that's basically dead in the water that suddenly rises from the ashes to find new popularity. On top of that, it's been growing by about 20% every year for the last 5 years.

That said, below is a chart that puts vinyl sales into perspective. It shows what sales were at their peak, and what they are now on the rebound. Many thanks to Paul Resnikoff at Digital Music News (you should read it).

Just Who Is Buying Vinyl Anyway?

Vinyl record sales are up 38% this year with projected total sales of over 8 million units, up over 200% since 2008. But just who's buying these records anyway? MusicWatch did a survey and this is what they found.

• 56% of all vinyl purchases are made by men

• Surprisingly enough, just under half of vinyl buyers are under 25 year old, with 13 to 17 year olds making up 21% of buyers and 18 to 25 making up 26%.

• The 26 to 35 age group makes up 25% of buyers

• 36 to 50 represent 14% of buyers

• Even more surprising is that baby boomers don't buy as much vinyl as previously thought, coming in at only 13%.

So how did the vinyl resurgence start? Most media watchers trace it back to Record Store Day in 2008, which has gone on to becoming a major retail event in not only the US, but Europe, Canada and Mexico as well. Many labels and indie acts prepared special releases for this day, which helped launch the event.

Another factor is that with vinyl being more in demand, record labels are releasing more vinyl as well, which helps prime the pump for more sales. Most labels now are confident that they can sell at least a small number of units (anywhere from 2,000 to 5,000) to justify the expense.

That said, vinyl still is only a blip on bottom line of the industry, although that blip is growing a little every year. As of December 7th, vinyl accounted for only 3.4% of US album sales and 6% of physical album sales.

The Top 10 Vinyl Records Of 2014

Bob Marley - Legend Vinyl Record

Sales of vinyl records will be up again at the end of 2014, which is no surprise to anyone in the music business. Mastering houses that cut vinyl lacquers are busier than ever, as are record pressing plants. There's even rumor of new modern equipment being built for the first time in about 30 years.

That said, a recent ICM survey found that fully 15% of vinyl buyers never listen to them. They're purchased as much as a collectible as anything. Then again, not everyone has the means to play a vinyl record either.

Here's the top 10 best selling vinyl records of 2014 so far.

1. Lazaretto - Jack White

2. AM - Arctic Monkeys

3. Morning Phase - Beck

4. Turn Blue - The Black Keys

5. Born to Die - Lana Del Rey

6. Legend - Bob Marley & The Wailers

7. Abbey Road - The Beatles

8. Pure Heroine - Lorde

9. Salad Days - Mac Demarco

10. St. Vincent - St. Vincent

Just as an aside, notice how all the album titles are either 2 or 3 syllables in length.

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Urban Outfitters Is Now The Biggest Vinyl Retailer

We all know about the resurgence of vinyl in the US, but it's interesting that the demographics don't skew to the older "classic" album buyer who grew up with them. In fact, it's the younger music consumer that's pushing the format's comeback.

This is now outlined by the fact that the bastion of hipsterdom, Urban Outfitters, recently announced that it is the now the world's biggest seller of vinyl records. The company is also a main retailer for turntables as well.

Although Urban Outfitters is the largest brick and mortar retailer with 8.1% of the market, Amazon is actually the largest vinyl dealer in the US at 12.3%.

Urban Outfitters actually uses a very innovative way for stocking vinyl product. The company rents out it shelves to more than 100 vendors. The company then provides its 288 stores with an online list of inventory that they can then stock on consignment.

All that said, only 6.1 million vinyl albums were sold in total in the US in 2013, which is a drop in the bucket when it comes to the industry's bottom line. That number should be surpassed this year, as the year to date total is already at 5.9 million according to Billboard.

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How Streaming Hurts Digital Download Sales

While this blog has posted many times about the decrease of download sales as streaming music has taken off, this chart from Statista illustrates the trend very well.

In comparing the first half of this year with the first half of 2013, you can see that on-demand streaming (which means from a service like Spotify or Beats Music) is up about 50%. Add to that the increase of on-demand music through video services like YouTube, which is up another 35%, and you can readily see why digital album sales are down almost 15% and individual track sales are down 13%.

CD sales are down by more than 19% from the same period, but that most likely would have occurred even without audio streaming becoming as big as it is. CDs will stay around for a while, but the format has long since seen its peak.

The anomaly is still vinyl album sales, which are up a whopping 40% over the same time last year. While that seems like a lot, the revenue derived from that facet of the business is still a figurative drop in the bucket compared to the rest of the recorded music industry, but it's still nice to see.

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Jack White's Lazeretto Goes To #1 Because Of Vinyl

It used to be that you needed sales of 1 million+ and massive radio airplay to get to #1 on the Billboard 200 album chart, but those days are long over. Today the sales requirement is a lot more modest, sometimes as low as 50,000, which includes all sales of CDs, vinyl and downloads. That's why it's so interesting that Jack White's new Lazaretto album went to #1 this week, but chiefly based on his vinyl sales.

Lazeretto had total sales of around 138,000 in the week ending June 15, but 40,000 of those where vinyl copies, which also garnered him a #1 on the vinyl chart as well. To put that into perspective, the CD sales were only 41,000 and the rest were attributed downloads.

But the 40,000 vinyl sales were significant in another way. They were the highest weekly sales since Soundscan began sales measurement in 1992.

One of the things that really helped the vinyl sales of Lazeretto is the extra features that White included to make the record unique, like:

• 2 hidden vinyl-only tracks beneath the label. One plays at 78 rpm and the other at 45 rpm.
• Side A plays from the outside in.
• Dual groove technology plays an electric or acoustic intro depending upon how the needle is dropped.
• The dead wax area on side A contains a hologram designed by Tristan Duke.
• Zero compression used.
• Different mixes from the CD version.

Jack White has always pressed the limits of technology and music, and this time it appears to have paid off.

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Record Store Day Another Big Hit

Record Store Day 2014 was again a raging success as sales at independent record stores represented 19.4% of the US music sales volume last week, which many say is the highest share since Soundscan began tracking such things in 1991. Many record stores proclaimed it their best day ever, with some stores actually having a line of several hundred waiting to get into the store!

As a result of RSD, vinyl sales were up a whopping 57% as its resurgence continues, with over 329,000 sales for the week. So what titles were hot? Here's how Billboard ranks sales for the week:

Vinyl Albums
1. Childish Gambino, "Because the Internet" (Glassnote)
2. The Afghan Whigs, "Do To the Beast" (Sub Pop)
3. Notorious B.I.G., "Life After Death" (Bad Boy/Rhino)
4. Bruce Springsteen, "American Beauty" (EP) (Columbia)
5. The Jimi Hendrix Experience, "Live At Monterey" (Experience
Hendrix/Legacy)
6. Grateful Dead, "Hampton Coliseum: Friday May 4, 1979" (Grateful
Dead/Rhino)
7. Tame Impala, "Live Versions" (Modular/Interscope/IGA)
8. Joy Division, "An Ideal For Living" (EP) (Warner UK/Rhino)
9. The Flaming Lips, "7 Skies H3" (Lovely Sorts Of Death/Warner Bros.)
10. The Ramones, "Meltdown With the Ramones EP" (Sire/Rhino)

Vinyl Singles

1. Nirvana, "Pennyroyal Tea" (Sub Pop/Geffen/Interscope)
2. Devo/The Flaming Lips, "Gates of Steel" (Live) (Warner Bros./Rhino)
3. The Cure/Dinosaur Jr., "Just Like Heaven" (Fiction/Elektra/Rhino)
4. David Bowie, "1984" (Parlophone/Rhino)
5. Love/Rush, "7 and 7 Is" (Elektra/Rhino)
6. Frank Zappa, "Don't Eat the Yellow Snow" (Zappa/UMe)
7. Poison Idea/Pantera, "The Badge" (East West/Rhino)
8. Paramore, "Ain't It Fun" (Fueled By Ramen/RRP)
9. Fleetwood Mac, "Dragonfly" (Reprise/Warner Bros./Rhino)
10. Garbage With Brody Dalle, "Girls Talk" (Stun Volume)

Record Store Day continues to be a yearly hit, and vinyl sales continue to surge, now at 3.2% of all music sales. The indie brick and mortar record stores should be all cheering loudly, and rightfully so.

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Vinyl Sales Grow, But Albums Stagnate

We're starting to get the final music sales figures from 2013, and the biggest jump so far is with the vinyl album. As you can see from the chart below from Statista, the LP has been on a steady incline since 2007, but last year grew by 32% over 2012.

Albums in general haven't done so well though, as overall sales (including CD and digital) fell another 8.4% last year, slumping to 289 million units from 316 million in 2012.

That being said, remember that the big jump in vinyl still means there was only 6 million units sold! That's a drop in the bucket compared to the other music media.

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Top 10 Best Selling Vinyl Records

Amazon recently presented a report that stated that vinyl sales are up 745% since 2008. One of the reasons the company feels that sales are up that drastically is because of its Autorip service, which provides MP3s of the tracks of the vinyl album, so it's like getting two products for the price of one. Here are some interesting Amazon vinyl facts.

Best Selling Genres
Rock - 55.6%
Miscellaneous - 19.2%
Pop - 9.8%
Urban - 4.3%
Dance - 3.9%
Folk - 1.7%
Blues - 1.5%
Easy Listening - 1.5%
Jazz -1.5%
Reggae - 0.9%
Classical - 0.1%

The shock here is not that rock leads the pack, but how poorly jazz and classical sales are, considering that vinyl is a centerpiece of the listening experience of both genres.

That said, here are the top 10 best selling vinyl records of last year.

Best Selling Vinyl Albums In 2012
1. Blunderbuss - Jack White
2. Abbey Road - The Beatles
3. Babel - Mumford & Sons
4. El Camino - The Black Keys
5. Sigh No More - Mumford & Sons
6. Bloom - Beach House
7. For Emma Forever Go - Bon Iver
8. Boys And Girls - Alabama Shakes
9. 21 - Adele
10. Bon Iver - Bon Iver

The surprise here is that both Mumford & Sons and Bon Iver both had two records in the top 10, and that Abbey Road is still popular after all these years.