Global vinyl sales are predicted to generate $1bn (£800m) worth of revenue in 2017, a new report has claimed.
Deloitte’s latest edition of its Technology, Media and Telecommunication (TMT) Predictions for 2017 stated that new and used discs will generate more than 90 percent of the revenue.
The remainder will be made up from the sale of turntables and accessories.
Further figures from the report suggested that about 40m new discs will be sold. This will generate 800-$900m and an average revenue per unit at a little over $20.
Vinyl’s continued resurgence will likely account for up to 18 percent of all physical music revenues in 2017 and about six percent of forecast global music revenues of $15bn.
Paul Lee, head of TMT research at Deloitte, said: ‘Vinyl’s resurgence more than 40 years after peak sales in the late-1970s is something of a phenomenon. The ubiquity of music streaming services means that music has never been more accessible, portable and readily available for consumer. Yet, despite that, consumers are choosing to buy something tangible and nostalgic and a price point that provides record companies with significant revenues.
‘Vinyl has a future in music, and an attractive one from a financial as well as an aesthetic perspective, but it is not, and is unlikely ever to be, its major growth or profit engine. Music’s future, both from a revenue and consumption perspective, is all about digital, and this is where the brunt of the industry’s focus should be.’
Recent data from the Official Charts Company (OCC) and UK labels’ association BPI have shown that vinyl sales passed the three million unit mark in 2016 to hit heights not seen since the early nineties.
Though still niche in terms of its size within the overall recorded music market, vinyl enjoyed another stellar year, with over 3.2 million LPs sold – a 53 percent rise on last year and the highest annual total in a quarter of a century since 1991.