Photo Credit: Victrola Record Players
Vinyl sales slowdowns amid broader economic uncertainty spell trouble for several smaller vinyl companies.
Vinyl records surpassed CDs as the most popular physical music format over the past few years; 2024 marked the 18th consecutive year that vinyl record sales grew. But the strain on vinyl production facilities has only been compounded by the increased demand.
That increased demand was made all the more difficult by many manufacturing plants having closed down when vinyl sales first started to slow down back in the 80s. Now, the problem is getting worse again as vinyl sales appear to be cooling off—after a 33% drop in sales between 2023 and 2024.
The birth of new manufacturers, like Jack White’s Third Man Records, helped ramp up capacity over the last decade. But supply shortages during the pandemic contributed significantly to longer lead times.
In 2021, lead times averaged 27 weeks for new vinyl albums, compared to only six weeks of lead time two years prior. Ultimately, only major artists like Taylor Swift have the time and resources to put into a vinyl option with an album release.
Now, in a post-pandemic landscape facing economic headwinds, numerous small vinyl manufacturers are calling it quits. Just last year, Brooklyn-based Leesta Vall bit the dust, while The Vinyl Lab in Nashville announced in January they would be closing their doors.
This week, dozens of subscribers to the Vinyl Me, Please (VMP) record club in Denver have reported unfilled orders, a lack of refunds, and an unresponsive customer support staff. Worse still, some have noted liquidation notices from the company, even while the Denver business insists it will return to normal operations this month.
“It seems VMP has stopped shipping records entirely and they’re still charging for memberships that promise new releases,” said long-time member Stewart Eastham, who says he is still seeking refunds from the company totaling over $1,000 in unfilled pre-orders and annual membership fees. “There has been zero communication and no response from customer support for over a month now.”
Another long-time member, Chris Kaley, said he blames layoffs at the company within the last year for the lack of response. “They fired everyone,” he said. “Who’s left? They’ve never been this late in ten years.”
The company appeared to be doing well in late 2023, but a slew of executive firings and lawsuits in early 2024 led to shipping delays and more job cuts. Between this and the broader economic uncertainty, it’s unknown whether VMP will be able to get back on its feet.
Content shared from www.digitalmusicnews.com.