Nearly two decades since their peak popularity, CDs are having a moment, but how long will it last?
Compact Discs are back (not that they ever went anywhere). According to data from the Recording Industry Association of America (RIAA), shipments of compact discs rose from 31.6 million in 2020 to 46.6 million in 2021 – a rise of 47%. Revenue also increased from $483.2 million to $584.2 million. The last time sales of CDs were on the up was in 2004.
These figures may seem small compared to CDs’ 2004 peak when nearly a billion discs shipped in the US alone. But it seems possible that compact discs may soon follow vinyl’s footsteps by having a revival moment. In 2021, 39.7 million vinyl records were sold in the US, generating nearly $1 billion, a noticeably higher return than CD revenue.
The true sales figures for compact discs are likely higher than the RIAA report estimates. Many independent artists sell a large portion of CDs to fans at live shows or through online merch stores and never report sales. Its possible tens of thousands, if not millions, of CDs are sold this way annually.
But Why?
The motivations behind our renewed cultural interest in CDs likely differ depending on whether you’re a music fan or professional.
For fans, physical music is often viewed as a souvenir. Owning a vinyl or CD is tangible proof of fandom, proving to other listeners that someone financially supports the artist(s) they love.
In the world of K-Pop, which has taken young listeners worldwide by storm in recent years, music as a keepsake is commonplace. Physical media releases in this genre often include exclusive photographs, merch items, and unique packaging. Fans view each release as a collector’s item, increasing demand and sales.
For the industry, CDs offer a cost-effect alternative to vinyl, which is experiencing a production backlog due to increasing demand and ongoing supply chain issues.
While per-unit costs drop with larger orders of both formats, the savings that CDs offer the artists and labels making them as well as the fan buying them are substantial. As Hypebot points out, at Discmakers, a limited run of 100 CDs in full-color jackets can cost around $2 each. That same run of 100 vinyl records costs $20 – $25 each.
The turnaround time for CDs is also much quicker than that of vinyl. Discmakers currently list three options for compact disc production times, with the longest taking fourteen business days. By comparison, Gold Rush Vinyl now warns customers that new orders are facing a turnaround time of eight to ten months. Several services offer shorter times for higher prices, but the fastest we’ve found is sixteen weeks.
CDs are also easier to transport than vinyl and take up less space, which is useful when touring in a van, car, or bus.
What does this mean for artists?
Artists from all walks of life should consider utilizing CDs as merchandise items. Not only are they cost-efficient and easy to make, but the options for customization are endless. Physical releases provide a unique opportunity to expand upon your record. You can help fans decipher the stories behind the songs, provide them with lyrics to sing along to, or create an engaging layout that pulls us further into your world of sound. Best of all, the low cost of creating CDs means the risk is equally low. It’s better to spend $200 on a hundred CDs you struggle to sell than $2500 on a similar amount of vinyl.
What does this mean for streaming?
Absolutely nothing. Streaming is king, and it’s highly unlikely that the resurgence of physical media in any form will dethrone it. Paid subscriptions to streaming services like Spotify, Tidal, and Amazon Music accounted for over 57% of music revenue ($8.6 billion), with ad-supported streams bringing in another $1.8 billion. CD and vinyl album sales combined accounted for less than 11% of revenue.
