Vinyl has surprisingly been showing impressive growth, even in the current age of digital downloads and live streaming. If you overlook the long delays and high costs of production, then you could see how artists can stand to make a lot of money from vinyl. With over 30 million vinyl units being shipped from 2008 to 2014, the old-line fabrication facilities are starting to get overwhelmed.
The result of this increasing vinyl demand is that sometimes artists are kept waiting for nearly six months to get their vinyl copies. That means they do not have enough inventory both online and at shows. This is bad news for artists, as there’s a lot of money to be made from this niche product that’s driven by hardcore fans and nostalgia.
The big question is: why is no substantial investment being made to create new vinyl production facilities? Two major factors that are hindering ventures into vinyl production are 1) the plants demand a very high capital investment, and 2) most investors are unsure about whether is just a fad, perhaps fading out sooner rather than later. Based on the recent history, the demand for vinyl has a high probability of continuing to multiply over the next decade. But that being said, there’s also the possibility that it may go in the opposite direction.
For now, it appears that some of the major issues related to vinyl production are waning––with more than ten straight years of gains. A notable company that’s getting involved with vinyl production is Dallas-based Hand Drawn Records, which is intending to start construction of a high-tech pressing factory this fall. The company claims they will be using the world’s first fully automated vinyl pressing plant. This should simplify both the order and turnaround times significantly. The founder of Hand Drawn is encouraging artists to use vinyl, with all its benefits, without the usual hassles.
At the same time, the actual vinyl is also being enhanced in various ways, with a new HD vinyl technology being patented by an Austrian company. This future HD vinyl guarantees a more immersive listening experience for enthusiasts, and a more modern and quicker production process compared to the dated production equipment used in vinyl production today.
In conclusion, the resurgence of vinyl is not just hype. It is real, and it is being driven by a large cultural trend that seeks authenticity from the music available today. Artists should evaluate if opting for vinyl pressing, and tapping into this growing market, could be indeed be a very good idea.