Here's How Vinyl Album Sales Revenue Is Split at Independent Record Stores

Here's How Vinyl Album Sales Revenue Is Split at Independent Record Stores

By Marcus Bennett

November 27, 2024 at 11:13 PM

A detailed breakdown of vinyl album revenue distribution at independent record stores reveals how sales support multiple small businesses in the music ecosystem. Here's the exact breakdown using a $24 vinyl album sale as an example:

Record Store (35%): $8.49

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

Distributor (13%): $3.10

  • Example: Secretly Distribution
  • Less credit card processing fees

Manufacturer (25%): $6.03

  • Example: Gotta Groove Records
  • Covers production costs

Artist & Label Split (27%): $6.37 total

  • Artist: $3.19 (13.5%)
  • Label: $3.19 (13.5%)

Person flips through vinyl records

Person flips through vinyl records

Comparing to Streaming:

  • One vinyl purchase equals approximately 4.5 days of continuous streaming on Spotify to generate the same artist revenue
  • Physical sales provide more direct financial support to artists and independent businesses

Important Notes:

  • Figures may vary based on manufacturing volume, store pricing, and distribution arrangements
  • This breakdown assumes direct distribution purchase
  • While streaming remains valuable, physical record sales provide stronger financial support for the entire music ecosystem
  • Each vinyl purchase supports four independent businesses plus the artist

These figures come from Colemine Records' analysis of Kelly Finnigan's "A Lover Was Born" album sales through Culture Clash Records in Toledo, Ohio.

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