Anyone who has bought a vinyl record or a CD in recent years knows full well that physical music products aren’t exempt from the inflation that has plagued U.S. consumers.
In fact, the price of a vinyl record in the U.S. rose 25.5% from 2017 to 2023, according to Billboard’s analysis of RIAA data — slightly more than the 24.3% increase in the consumer price index over the same time. CD prices fared a bit better, increasing just 20.4%.
However, while music subscription prices are rising, consumers can probably expect physical music prices to remain somewhat level going forward: Insiders who spoke with Billboard say vinyl prices are remaining steady in 2024 after the COVID-19 pandemic created supply chain problems and raised the costs of everything from raw materials to labor.
As one music distribution executive put it, those supply chain problems are “flattening out.” As a result, turnaround times have improved drastically as manufacturers worked through their pandemic-era order backlogs. “I feel like the prices will flatten, too,” says the executive.
“Our manufacturing prices have been stable for quite a while,” says Bill Hein, CEO of Pressing Business. Freight costs can be improved if a buyer books with flexible dates, Hein says, and reliable sea freight is being used for more of its U.S. deliveries. “Generally speaking, both air and sea freight are more predictable now than they were during the lockdown era, and prices are generally better.”
Outside of the music business, rising prices on everyday necessities have been a fact of life. Tired of the inflation that has eaten into their paychecks, Americans are pushing back against the high cost of staples, and companies are responding with attempts to reduce prices.
In July, PepsiCo CEO Ramon Laguarta suggested consumers had grown tired of more than two years of rising prices. “Some parts of the [Frito-Lay] portfolio need value adjustment,” he said during a July 11 earnings call. Overall sales volume was down 4% in its most recent quarter, and North American beverage sales for the company dipped 3%. PepsiCo will respond, Laguarta said, by offering better deals and increasing advertising. For some consumers, Laguarta added, “we need some new entry price points.”
Companies across the economy are sharing PepsiCo’s experience with price-fatigued shoppers. Walmart is offering more short-term discounts. Target lowered prices. Fast food giants McDonald’s, Wendy’s and Taco Bell are courting customers through low-cost bundles and value-oriented menus. And because it’s an election year, Vice President Kamala Harris, the Democratic nominee for president, has floated a federal ban on price gouging in the grocery and food industries.
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Since vinyl prices are based heavily on manufacturing costs, there’s little to prevent prices from creeping up without sellers losing profits. Vinyl retailers set prices based on wholesale costs and their need to cover overhead and other expenses. Artists on record labels must pay the wholesale price for their physical goods and don’t have control over pressing and printing costs, says Paul Steele, executive partner at Triple 8 Management. “Physical prices for our roster of nearly 30 artists have mostly stayed the same for a decade, with small inflationary increases here or there,” he says.
But aside from run-of-the-mill inflation, there are other factors that could push the average sale price higher. Physical music is increasingly a luxury good — a high-priced collectible item with packaging to match. Artists frequently release multiple variants of LPs with colored vinyl. And albums released today commonly have the expensive gatefold packaging that was common in the ‘70s.
The way music is released in the streaming era also drives up prices. Artists take advantage of the unlimited shelf space on streaming platforms by stuffing albums with more songs at no extra cost. As Billboard noted last year, the top 10 albums’ average number of songs rose from 13.2 in 2014 to 19.1 in 2022. A double album on a vinyl record is more expensive, and as one executive notes, putting more songs on an album will often — but not always — require paying more mechanical royalties to songwriters and publishers.
Indeed, some of the most popular vinyl records of the moment are double- or triple-LPs. Post Malone’s 18-track, two-LP album F-1 Trillion sells for $45.89 at Amazon and more at other retailers. Zach Bryan’s 34-track American Heartbreak has three LPs and a $44.98 list price. And that’s not to mention the more extravagant reissues, such as a 2-LP/2-CD/1-Blu-ray package for Van Halen’s For Unlawful Carnal Knowledge that carries a $99.98 list price.
Despite the increase in vinyl prices over the last several years, sales have yet to abate. Will that continue? The answer to that question will likely lie with younger consumers who have less disposable income. Michael Kurtz, co-founder of Record Store Day, says vinyl being a premium, collectible product is toughest on younger consumers. While Record Store Day succeeded in helping turn a new generation on to vinyl records, younger people don’t have as much money and are cutting back on their purchases. “A young customer 18 months ago would come to the counter with two or three records,” says Kurtz. “Now they come to the counter with one or maybe two.”
Catalog titles are often the more affordable option and help offset frontline price creep. Michael Jackson’s Thriller can be had for under $25. Fleetwood Mac’s perennial top-seller Rumours is offered in both affordable and more deluxe versions. Rhino Records’ Now Playing series of compilations for artists ranging from The Stooges to Gram Parsons to John Prine are priced at $19.99.
The good news — for all consumers — is that price growth is reverting to historical norms. The average monthly U.S. inflation rate reached 4.7% in 2021, 8.0% in 2022 and 4.1% in 2023. This year, the average monthly increase in the consumer price index (CPI) is just 3.2% through July. If vinyl prices seem like they’re continuing to creep upward, the packaging and the increasing prevalence of the double album are likely to blame.
