Physical music sales are on course for their first increase in two decades.
As revealed in the new edition of Music Week, physical album sales increased by 3.2% year-on-year to 8,044,760 units in the first six months of 2024. The half-year figures from the Official Charts Company and BPI also show increasing momentum with sales up 3.9% in the second quarter.
At the same midway point in 2023, physical albums growth was still negative (-0.3%), while the 12-month result last year was down 1.1%.
Overall physical album sales have not registered a year-on-year increase since 2004, when there was a 2.6% uplift to 163.4 million units.
That 2004 total also underlines the decline of physical sales and the subsequent shift to streaming over the last two decades. According to the half-year BPI figures, streaming equivalent albums (SEA) increased by 11% year-on-year to 87,974,752 units.
Overall consumption based on Album Equivalent Sales (combining all physical, digital and streaming) was up 9.8% in the first six months to 98,548,427 units.
The vinyl boom has not been enough to drag physical music into positive growth in recent years because CD – still the dominant format in unit terms – has seen large declines. But that could change in 2024 with superfans and vinyl collectors boosting the physical sector, alongside initiatives such as Record Store Day, HMV Vinyl Week and National Album Day.
While physical sales revenue has been increasing – even including an uplift in income from CDs in 2023 – the first overall units increase could mark a turnaround for the sector in 2024. Proper Distribution recently reported record shipments from its new Bicester Warehouse.
With 254,241 physical sales so far this year, Taylor Swift’s long-running No.1 LP The Tortured Poets Department and her catalogue have made a significant contribution to the market growth.
In addition to The Tortured Poets Department, the Top 5 physical sellers for the first six months were Swing Fever by Rod Stewart & Jools Holland (48,540 sales), the self-titled album by Liam Gallagher & John Squire (46,982), Billie Eilish’s Hit Me Hard And Soft (45,434) and The Last Dinner Party’s debut Prelude To Ecstasy (42,352.)
Dua Lipa’s Radical Optimism was at No.6 overall for physical sales, although based on vinyl sales alone it made No.5 overall for the first six months (19,328 vinyl LPs).
It’s heartening to see that, after years of significant declines, the CD market is potentially on the up again
Dr Jo Twist
Breaking down the physical sales momentum so far this year, vinyl is once again the driver with a 12.4% year-on-year increase for the first six months to 3,052,498 units. The growth was even stronger in Q2 at 13.3%.
CD sales for the half-year were down 1.5% to 4,911,845 units. While that represents a loss of around 75,000 sales, it marks a significant slowing of decline compared to recent years – and that shift has helped to bring about a long-awaited overall increase in physical sales in the latest figures.
It could also mean that CD is set for its own revival. In Q2, the sales decline for the format was just 0.8%.
In 2023, the annual rate of decline for compact discs slowed to its lowest level since 2015, dropping by 6.9% to 10.8 million units. This Life by Take That was the year’s top title with just over 127,000 units sold.
In the latest edition of Music Week, we discuss physical sales with industry leaders at the BPI and ERA, as well as HMV and Rough Trade.
Speaking to Music Week for our half-year analysis, Dr Jo Twist OBE, BPI chief executive, said: “Ever since sales of vinyl LPs started rising again more than 15 years ago, the compact disc has been in the shadow of the older physical format, so it’s heartening to see that, after years of significant declines, the CD market is potentially on the up again.
“Thanks to record labels, music fans now have more choice than ever to enjoy releases by their favourite artists, from the mass-market penetration of streaming to an array of physical formats which have a complementary relationship to streaming and help to reinforce the special bond that exists between creator and consumer.”
The renewed interest in physical music is also reflected in the singles market, where sales of seven-inches are at their highest level in 15 years. In its 75th anniversary year, the seven-inch format enjoyed a 146% year-on-year increase in sales to around 130,000 units – the first time it’s surpassed 100,000 units since 2009.
See the new edition of Music Week for our report on physical sales growth.
PHOTO: Banquet
FOLLOW 
