US vinyl record sales back to glory days, surpassing CDs for the first time since 1980s

As a symbol of nostalgic relic, vinyl records have been receiving unexpected popularity among Americans amid the pandemic. This year, vinyl sales have even surpassed the sales of CDs in the U.S. for the first time since the 1980s.

According to a recently released mid-year report from the Recording Industry Association of America (RIAA), vinyl records accounted for US$232.1 million of music sales in the first half of 2020, while CDs brought in US$129.9 million. RIAA also found that Vinyl revenue was up 4% and CD revenue was down 48%.

The striking trend of American music-listening habits during COVID-19 pandemic is closely related to retail store closures and tour cancellations. Data from Billboard suggests that Americans are feeling the nostalgia of vinyl. The first week in September marked the biggest week in 2020 for album sales, and vinyl record sales have been growing for 14 years straight.

Vinyl records, also known as "records pressed on wax," were commonplace before other formats, such as cassette tapes and CDs, become the preferred mode of listening to music. Fans of vinyl say it offers a richer sound than its digital successors, despite the occasional crackles caused by scratches or dust on the records.

"Vinyl is no longer the preserve of baby-boomers who grew up with the format. It now also appeals to a new generation of engaged younger fans and millennials," said Geoff Taylor, Chief Executive of BPI, the representative body for UK record labels. "While digital platforms provide fans instant and unlimited access to an ever-expanding cosmos of music, they can't quite match the unique experience vinyl gives you."

But still, the boost in vinyl interest hasn't stopped overall physical sales from plunging 23% to US$376 million in the first half year of 2020 as a result of rising unemployment in the US.

With people having more time at home due to COVID-19 lockdowns, music streaming, which includes revenue from paid services such as Spotify, Apple Music and Amazon, has entered its booming era. The report from RIAA indicated that streaming grew 12% to US$4.8 billion during the first six months of 2020. The average number of paid music subscriptions was 72 million, up 24% compared to the first-half average for 2019. Streaming is gradually becoming the dominant music format, accounting for over 85% of music industry revenue.