UK vinyl revenue set to overtake CDs for first time since 1987 🎶

The format continues its resurgence

Author: Scott ColothanPublished 24th Mar 2021
Last updated 24th Mar 2021

Revenue from vinyl record sales is set to overtake CDs for the first time since 1987, the British Phonographic Industry has announced.

Thanks to strong sales of albums including Fleetwood Mac’s ‘Rumours’ and Queen’s ‘Greatest Hits’, vinyl revenues rose by a huge 30.5% in 2020 generating £86.5 million in revenue.

Campaigns such as LoveRecordStores, Record Store Day, National Album Day and HMV Vinyl Week all helped vinyl sales, while rising direct to consumer (D2C) sales of physical products also gave the format a boost.

In contrast, sales of compact discs fell by 18.5%, however the format still generated £115 million in revenue last year.

If sales of both vinyl and CDs continue at the current trajectory, the British Phonographic Industry predicts that vinyl will be the dominant physical format revenue-wise in 2021.

Geoff Taylor, Chief Executive BPI, BRIT Awards & Mercury Prize, said, “Vinyl’s exceptional performance despite retail lockdowns confirms its role as a long-term complement to music streaming. 2021 is likely to be the year in which revenues from LPs overtake those from CDs for the first time in well over three decades – since 1987.

“In addition to the immediacy and convenience of streaming, fans want to get closer to the artists they love by owning a tangible creation, and more and more of them are discovering how vinyl, or lovingly created CD box-sets, can enhance their experience of music.”

Sales of cassette also rose by 4.4% in 2020 with over 150,000 units shifted – the highest number in 17 years.

Despite the impressive vinyl and cassette figures, streaming is now the biggest money spinner for the industry. Revenues from streaming grew 15.4% to £736.5 million in 2020.

Overall, UK recorded music revenue rose by 3.8% in 2020 to reach £1.118 billion.

Geoff Taylor added, “The lockdowns inevitably affected financial results in 2020 but, unlike other parts of our industry which were hit very hard, the seamless connectivity of streaming and the enduring love of vinyl meant that recorded music was relatively insulated from its worst effects and was still able to post growth.

“The ongoing increase in paid subscription streaming fuelled labels’ ability to continue investing in artists. The safe and rapid reopening of live venues is the music community’s critical first priority, but the resilience of recorded music demonstrates the important role it plays in people’s lives even in the midst of the COVID pandemic.”