Vinyl sales back in black

Vinyl record sales surge as they go mainstream

Mike King

Mike King is a Fool.com.au Investment Analyst and Writer. He caught the investing bug more than a decade ago, at a time when the U.S. had invaded Iraq and fear reigned in the markets. His initial success as the markets took off encouraged his passion and thirst for knowledge. With 13 years behind him at one of Australia's largest domestic banks, Mike's passion for stocks led him to join a boutique funds management firm, where he stayed for four years. A seven-year stint in equity research at one of the largest investment banks in the world followed that, giving Mike a thirst to pursue his passion further. Mike holds a Diploma in Applied Finance and Investment and a Graduate Certificate in Financial Planning. His passion is to help retail investors invest better, and that passion was one of his primary reasons for joining The Motley Fool Australia in late 2011. Mike has written thousands of articles since joining, including for Fairfax Media, Yahoo!7, Ninemsn and has also appeared on ABC's The Business. You can see all of Mikes' holdings here

Published September 24, 2013 10:45 am AEST

Vinyl record sales are staging a resurgence, as a new generation of consumers embrace the old format with delight.

Stores are reportedly packed with under 20s digging through crates of vinyl records. That has resulted in vinyl album sales soaring more than 70% last year, and single sales up by more than 50% over the previous year, according to the Australian Recording Industry Association (ARIA).

ARIA chief executive Dan Rosen has told ABC News it is a big turnaround and the format is gaining momentum. "Well it's been an interesting phenomenon that vinyl sales doubled last year, admittedly from a low base, but it went from approximately $1 million in sales to almost $2 million in sales in 12 months," he said.

Consumers are reportedly taken with the artwork on the album covers as well as the exclusivity of limited editions, bootleg and rare vinyl. And that's not to mention the perception that vinyl is a superior sound carrier to CDs and digital formats. While not many listeners can tell the difference between a CD, digital or vinyl, there is a widespread perception that vinyl sounds warmer and is more human according to Griffith University associate professor Ian Woodward.

The resurgence of vinyl is not only happening in Australia but the US as well, according to David Bakula, senior vice president of Nielsen's entertainment division. He says they are in their seventh straight year of vinyl growth, and were on track for their biggest year since 1991.

Australian consumer could soon see vinyl records in their local JB Hi-Fi (ASX: JBH), Harvey Norman Holdings (ASX: HVN), Big W – owned by Woolworths (ASX: WOW) and Kmart – owned by Wesfarmers (ASX: WES) stores. It could also lead to increased sales of vinyl turntables, and other associated accessories, and spark a whole new sales category.

Foolish takeaway

Who would've thought it? Vinyl making a comeback. Now the baby boomers and Generation X can dig out their 60s, 70s and 80s records and pretend they're cool again! Just leave the bell bottom jeans in the cupboard for a little while longer.

Interested in our #1 dividend-paying stock? Discover The Motley Fool's favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of "The Motley Fool's Top Dividend Stock for 2013-2014."

More reading

Motley Fool writer/analyst Mike King owns shares in Woolworths.

Automatic Renewal

By taking up this offer, you will also be enrolled in our auto-renewal program, which is our way of making your ongoing subscription easier by ensuring uninterrupted service. Don't worry, though – you're not locked in, and can cancel your auto-renewal at any time before each 'anniversary' date without question or penalty.