Everything old is new again … and not just when it comes to fashion.
Vinyl Group (which owns this publication) has announced the addition of CDs to its online retail offerings, a move spearheaded by chief marketing officer, Alli Galloway. This decision reflects a strategic response to the burgeoning demand for physical music formats, a trend clearly indicated by data from ARIA, RIAA, and Luminate.
Data driven
In an interview with Mediaweek, Galloway pointed to a clear shift in consumer behaviour, noting, “I closely track reports from ARIA, the RIAA, and industry analysts like Luminate, all of which confirm sustained growth in physical music sales, driven primarily by vinyl and, more recently, a resurgence in CDs and even cassettes.
Galloway noted the trend reflects a broader shift as fans, fatigued by digital consumption, seek tangible ways to deepen their connection to music.
“Collectible formats not only enhance fandom but also offer artists a more financially impactful revenue stream compared to streaming,” she said. The company, which also operates Vampr, Jaxsta, and Serenade, is focused on providing tangible formats comes at the perfect time, given its overarching mission to empower creators with viable monetisation avenues.
Vinyl Group CMO, Alli Galloway.
The introduction of CDs is rooted in direct customer feedback and data-driven insights. “With a strong base of loyal, returning customers who provide valuable feedback, we prioritise meeting their expectations while maximising revenue opportunities for artists,” Galloway explains.
“Recognising this demand, we confidently introduced CDs as a collectible format,” she said.
Rise of the ‘superfan’
Vinyl Group’s data-driven approach ensures a targeted strategy, identifying key audiences for CD sales, with Rock and K-pop fans among the most engaged. Initially guided by distributor data and industry charts from ARIA, Billboard, and OCC, the company plans to refine its offerings based on customer insights.
Galloway says her perspective on the change has been shaped two decades of observing music consumption trends, emphasises the enduring power of the ‘superfan’.
“Having witnessed the evolution of music consumption over 20 years firsthand, one constant remains; fans follow their favourite artists, adapting their buying habits accordingly. The rise of the ‘superfan’ underscores this, representing those who consistently invest in artists through collectibles and merch. While CD sales have fluctuated, our decision to add them stems directly from demand. Does this continue to surprise me? Absolutely!”
Vinyl Group says the move underpins its commitment to adapting to evolving consumer preferences and maximising revenue streams for artists within the dynamic music marketplace.