BPI research: CDs, vinyl, resilient in face of streaming onslaught

Streaming might be on the dub in the UK, expected to rise to 25 billion audio streams this year – which is over double that of the 13.7 billion audio streams last year.

But while the general thought is that digital sounded the death rattle of physical formats as CDs and vinyl, new British research suggests the opposite.

In fact, according to the study by record label trade body British Phonographic Industry (BPI) and Entertainment Retailers Association (ERA), streaming’s hum is actually helping the resurgence of the physical format which is still worth £500 million (A$1.05 billion) in Britain.

It’s all thanks to a new kind of consumer called the “multi-channeller”. For this dedicated music fan, digital and physical is not a case of either/or but both. Instead they are merely taking from the “best of both worlds”

This insight to the British music consumer – and obviously could also apply to Australian fans – could explain why the decline of the CD has slowed done, and why vinyl record sales have jumped 50% in the past 12 months in Britain.

The online survey, conducted last month by AudienceNet, found that two-thirds (66%) of the 1000 surveyed (aged 16 to 55) consider themselves ‘multi-channellers’, especially among the Millennials. They often use streaming for discovery, curation and convenience, then buying what they like to own and collect.

Or they might buy them as gifts: in the UK, one in every five CDs bought is as a present. 65% who buy only CDs said they bought them as a present.79% of those who buy both CDs and stream listed it as that reason. Up to 40% of record sales are, as is also the case in Australia, are sold during the Christmas rush.

Streaming is rapidly entering the mainstream, but music fans also value the benefits of CD and vinyl in a ‘best of worlds’ multi-channel scenario. In fact, one in four (44%) say that their streaming has either increased (13%) or maintained (31%) their spending on CDs. Nearly half (48%) of streamers spend more (19%) on vinyl or maintain (29%) their previous buys of vinyl long players.

Over a third of respondents listen to music for over three hours a day. Half had purchased a CD in the past 12 months with 15% also paying for a streaming subscription at the same time.

The most common multi-channel scenario (49%) combines free streaming with CD listening. The second most popular (44%) was the combination of free streaming and downloads. After CDs, the most popular music purchase was concert tickets (35%), download singles (33%) and download albums (31%).

However it is obvious that the majority of British purchasers have confined CDs and vinyl to the scrapheap, especially in the 16 to 24 age group. 34% of all surveyed responded they would not buy CDs again (although another 34% said exclusive tracks would tempt them to buy more CDs) and a huge 57% will have nothing to do with vinyl.

The new study was an eye-opener to the BPI, which notes that the relationship between streaming and physical purchases has not been studied before, especially those interested in vinyl records.

Of interest to ERA was that 34% of those surveyed wanted record stores to be places where they could stream and download AND play CDs and vinyls.

ERA CEO Kim Bayley comments: “This research suggests music fans are a great deal more nuanced in their approach to new forms of technology than they are sometimes given credit for. They understand there are some benefits which streaming can deliver better than CD or vinyl and vice-versa. It is important, therefore, that the industry responds to this and ensures that music is available how and when music fans want it.

“Luckily, the UK has one of the most diverse music retail landscapes in the world, from thriving independents to ground-breaking digital services to the High Street, supermarket and internet offerings. Preserving that diversity is key not just from the industry’s perspective, but also the music fan’s.”

Geoff Taylor, CEO of the BPI adds, “The enduring appeal of compact discs and vinyl has surprised many commentators who wrote them off years ago. But these physical formats still represent over 40% of UK music consumption, after decades of success.

“Our new research explains why they remain so popular, even with music downloads and the explosion in audio streaming. It shows that, unexpectedly, streaming may be enhancing their appeal to many fans, who appreciate the immediacy and convenience of services like Spotify, Apple Music and Google Play to discover and enjoy a huge range of new music, but still want to own and collect albums by artists they truly love.”

BPI figures show that while CD sales continue to decline, the rate has slowed. It’s dropped from 20% in 2012 to 13% in 2013, and 8% in 2014 when streaming took off. In the first half of 2015, the rate was at 6%, and 60% of albums are still sold in CD format.

Vinyl still remains 2% of the UK recorded music market. But sales are expected to hit 2 million this year, for the first time in 20 years.There are now more than 10,000 High Street outlets which stock CD and vinyl across the UK.