When fans purchase vinyl albums from independent record stores, here's exactly how the money gets distributed, based on a real example from Colemine Records for a $24 vinyl album:

Retail Store (35%): $8.49

• Covers operational costs
• Pays credit card fees
• Handles shipping from distributor

Distributor (13%): $3.10

• Secretly Distribution's share
• Less credit card processing fees

Manufacturer (25%): $6.03

• Production costs for pressing vinyl
• In this case, Gotta Groove Records

Label & Artist (27%): $6.37

• Split equally between label and artist
• Approximately $3.19 each

For comparison, an artist would need to be streamed continuously on Spotify for 4.5 days to generate the same revenue as a single vinyl sale.

Key Benefits of Vinyl Sales:

• Supports four independent businesses simultaneously
• Provides better compensation than streaming
• Contributes to the broader music ecosystem
• Offers direct financial support to artists

While streaming remains important for music distribution, purchasing physical vinyl records represents one of the most impactful ways to support artists financially while also benefiting local businesses and the broader music industry.

The format continues to show strong popularity, as evidenced by recent successful crowdfunding campaigns like the vertical vinyl player, which raised over $617,000 from more than 2,500 backers on Kickstarter.

Related Articles

Previous Articles