The vinyl market - Italy (2024)

1.2 The global market

The global vinyl record market has shown remarkable growth in recent years. In ****, the market value reached $*.* billion and is expected to grow to $*.* billion by ****, with an annual growth rate (***) of about*.* percent.

The growth is supported by factors such as increased consumer spending, active promotion by celebrities , the historical and cultural value that vinyl records have in the music world.

Vinyl record sales have surpassed CDs in the United States for the first time since ****, according to a new report by the Recording Industry Association of America (***) organization. Just over ** million vinyl records were sold in ****, amounting to $*.* billion, while only ** million CDs were sold, accounting for $*** million. it was the sixteenth consecutive year of growth in vinyl sales, which now account for ** percent of physical format music revenues.

A trend that is also noticeable in Europe in recent years: theTechnavio agency estimates that the vinyl record market in Europe will grow to $** million by ****, with England, Germany and Italy leading the list.

Global vinyl market Italy, ****-****, in billions of dollars plastmagazine.co.uk

1.3 The Italian market

he balance of the first six months of **** for the recorded music market in Italy is undoubtedly positive: in fact, it marks an overall growth of **.*%, with a turnover of more than *** million euros.

it is the streaming segment that dominates the Italian scenario, reaching *** million for an overall growth of **%, with the subscription segment alone marking +**.*%. Revenues from the ad-supported audio segment are also up, up **.*%, while there is a slight decline in video streaming revenues of -*.*%.

Overall, digital now accounts for**% of the market, in line with **** results.

Positive sign also for the physical segment, which covers a **% market share and closes the semester at +*.*%: dominating is the stainless vinyl segment, up **.*% and with a turnaround for CD also up *.*%.

Breakdown of the music market by format Italy, ****, % fimi.it

Looking in more detail at the physical sector, this grew by +*.*% in the first half of **** compared to the same period in ****.

In terms of the different formats, vinyl shows a significant upward trend, growing +**.*%, while CDs grow only *.*%.

The growth of vinyl records has been predominant since the first quarter of ****, when after ** years, theLP format once again surpassed CDs in terms of sales. In that period, ...

1.4 Import-Export

Regarding foreign trade, reference is made to HS code ****: records, tapes, storage devices and other media for sound recording .

Regarding these devices,Italy is mainly an importer. The import-export balance remained fairly stable from **** to ****; in **** there was a higher coverage ratio, benefiting exports. However, in **** the value ofexport decreased by ** percent, making the coverage ratio evidently lower than the trend in recent years.

Import-Export of records and other recording devices Italy, ****-****, in millions of dollars comtradeplus.un.org

The main countries supplying these devices to Italy are primarily Germany, the Netherlands, and France , which account for almost half (***) of total imports. This is followed by China and Spain.

Main suppliers of records and other recording devices Italy, ****, % comtradeplus.un.org

Regardingexports from Italy, the distribution across countries does not show a clear predominance. However, by export value the top countries are Kuwait, Qatar and the Netherlands, which account for ** percent of the total. They are followed by Germany and France.

Main export destinations for records and other recording devices Italy, ****, % comtradeplus.un.org

1.5 The impact of Covid-19

Theimpact of the COVID-** pandemic on the vinyl market has shown both challenges and opportunities. During the initial period of the pandemic, there were several problems related to vinyl production and distribution. Some micro-vinyl printing companies were faced with the closure of their premises and the need to relocate equipment and recalibrate, thus complicating the production process.

For example, Phonopress, one of Italy's best-known vinyl printing companies, had to lengthen its lead time for delivery to customers due toincreased demand, which was already growing due to a niche market and further increased during the lockdown. (***)

However, despite the initial difficulties, the vinyl market saw substantial growth during the pandemic. For example, referring to music sold in the U.S. on physical media, of the total revenues in the first half of the year (***). CDs, on the other hand, earned $*** million.

Beyond the overtaking of vinyl over CD, what was most striking was the collapse of compact disc shipments and revenues compared to the same period in ****: -**% of units sold and -**.*% of revenues.

According to the RIAA, physical music sales as a whole have been affected by the COVID-** pandemic, likely due to venue closures and concert cancellations, which has ...

2.1 Demand in Italy

Record production

In order to understand how supply aligns with demand, the following is thetrend in the production of records, mainly vinyls, in Italy from **** to ****.

Contrary to what might have been expected, after a period when vinyls seemed forgotten they have made a comeback thanks to a niche market. In the first decade of the ****s, production began to grow, peaking in ****, the year that is referred to as the vinyl "boom," as also reported earlier. In ****, record production increased by ** percent compared to ****. According to Istat data in **** production would return to previous levels compared to ****, it is likely that thehuge increase in production in the previous year still needs to be absorbed.

Record production Italy, ****-****, in thousands of euros esploradati.istat.it

Listening habits of Italians

In ****, the effects of investment activities by record companies on local repertoire are confirmed in a context in which Italian consumers, according to IFPI Engaging with Music research, spent more than ** hours per week in listening to music (***): **% through free and subscription audio streaming format, while more than half of young people between ** and ** years old use paid audio streaming service.

The share of the different formats by which music can ...

2.2 Demand drivers

The following are the main drivers of the vinyl record market.

Rapid urbanization: global urbanization is on the rise, with sellers adopting omnichannel retailing practices to reach more consumers.

Music enthusiasts and collectors: collectors, audiophiles and DJs value vinyl records as valuable assets for concerts, shows and music recordings. They also have cultural and historical value in the music world.

Music label promotion: famous music labels hold events and offer deluxe or limited edition albums to promote vinyl records.

Celebrity promotion: celebrities and music personalities actively promote vinyl records, contributing to their growing demand.

Technological advances: manufacturers incorporate technological advances into vinyl records to improve capacity, maintain high-definition (***) audio quality, and reduce production costs.

(***)

In addition, according to IFPI's Engaging with Music **** report, a number of prevalent reasons emerge for why people buy vinyl. The physical nature of the product is, without a doubt, a driving factor which becomes important again at a time when streaming has exploded.

Reasons why vinyls are purchased Italy, ****, % fimi.co.uk

2.3 New demand trends

Investing in vinyls: a growing trend

Vinyls have for some time now become valuable again and not just a memory of days gone by. In a world now turned to digital, vinyl has had a major resurgence that began as early as **** in which sales were at record levels.

It is a collector's item that is being recognized as having an ever-increasing value thanks to millennials. The younger generation who have brought old records back to life by appreciating their special and unique sound that new digital solutions cannot reproduce. Collectible vinyls represent aninvestment option and today they are even more so given the continued growth in their value that does not seem to want to stop.

The reason crowdfunding investors are buying collectible and investment vinyls is precisely the surprising growth of interest in this old music recording system while other formats continue to lose ground in all markets.

The old tactile vinyl allows for a totally new listening experience as well as experiencing a system of interaction with music with has a special appeal to younger people. What surprises and interests investors the most is the clear interest of millennials to invest in old collectible or limited edition vinyl ...

3.1 The market structure

The analysis of the structure of the market related to vinyl records is carried out on the basis of data belonging to the category related to ATECO code **** (***). This category includes entrepreneurial and business activities that are engaged in the reproduction of audio and video materials recorded on various media. Specifically, it covers the production of copies of:

Vinyl records Compact discs (***) DVDS Other audio and video recorded media

Specifically, three different quantities are considered: number of active enterprises, number of employees, legal form of enterprises.

Looking at the number of active enterprises in the sector from **** to ****, firstly, it shows how it is a market comprising few enterprises. Secondly, it is observed how the number has been decreasing since **** and, in particular, steadily since ****. In **** there are *** active enterprises, about ** percent fewer than in ****.

Number of enterprises ATECO code **** Italy, ****-****, in number istat.it

As for the legal form of active enterprises, these assume almost entirely(***).

Legal form enterprises ATECO code **** Italy, ****, % istat.it

Regarding the average number of employees, these also show a decreasing trend from **** onward. In particular, the first obvious decrease was recorded in **** (***). The decrease in the number of employees also continued in **** and ****, albeit ...

3.2 The value chain

The value chain in the vinyl record market can be divided into several key stages, summarized in the illustration below.

3.3 Distribution

Distribution channels for vinyl records are varied and include both physical outlets and online platforms. The main ones are summarized below:

Physical specialty stores: record stores have always been the main sales channels for vinyl records. These stores often offer a wide range of titles, including rare and collector's editions. Many of these stores are run by music enthusiasts and connoisseurs, who can provide expert advice and detailed product information.

Flea Markets andRecord Fairs: flea markets, record fairs, and flea markets are popular places to find vinyls, often at competitive prices. These events attract collectors and enthusiasts, offering a wide selection of titles, including rare and collectible pieces.

Online Retail Platforms: Web sites such as Passione Vinile and Used Vinyl Sales offer a wide selection of new and used vinyl. These websites provide the convenience of online shopping with a wide range of options, including new releases, reissues, limited editions, and bestsellers.

E-commerce and Major Online Retailers: e-commerce platforms such as Amazon also offer a wide range of vinyl records, including new arrivals and bestsellers. These sites are convenient for quick searching and purchasing specific titles.

Record Labels' Websites and Social Media: some record labels sell their vinyl directly through their ...

3.4 The main players

The following are the main players in the vinyl market in Italy, classified according to ATECO code ****

Europress vinyl srl: a European company involved in the production of vinyl records, particularly LPs (***). It focuses on offering complete services for the production of these records, including the creation of artistic covers. It has about *** clients throughout Europe and produces about *.* million LPs annually. It cooperates closely with the company Eurographic.

Easyreplica International srl: is a company founded in **** with headquarters in Pesaro and another packaging and assembly facility in Peschiera Borromeo (***). It specializes in duplicating records such as CDs, DVDs, vinyls and Blu-ray, and has worked with local companies and major record labels for Italian and international productions. It has a production capacity of ***,*** pieces per day and offers offset and screen printing disc printing services. Easyreplica also offers custom packaging solutions for CDs and DVDs, with a wide range of finishes and special effects.

Elettroformati srl: founded in **** and headquartered in Milan, a company specializing in the printing, graphic and stylistic realization of vinyl records. With foresight and ability it has managed, through the evolution of the various record media first CD and then DVD, to read and adapt to the ...

4.1 Supply analysis

The vinyl record is composed of a rubbery material of polyvinyl chloride, a rigid but versatile plastic substance that is flexible and moldable.

To produce it, an initial wax disc is molded by hydraulic press, then painted with tin-silver chloride and used as a matrix to etch the grooves and create the final mold. The disc is then placed in a hot press along with the labels on the two sides: the press gives it its shape and etches the final grooves; then, after pressing and cooling, the disc is trimmed with a special tool that gives it its final shape.

How a vinyl record works

Sound reproduction with vinyl records is analog and is done by a diamond or synthetic stylus that "reads" the sound information etched on the record through grooves. The rotation of the record and the irregularities in the groove cause the stylus to vibrate, and these vibrations are processed by the phono-detector, a transducer mounted on a reading arm. The cartridge over time has been made in a variety of ways, namely with the piezoelectric system (***), with moving magnet and with moving coil, instruments that use electromagnetic induction to "read" the movements of the stylus.

In ...

4.2 The prices

The average price of vinyl records in Italy can vary depending on several factors, such as the artist, genre, and rarity of the edition. Below are some examples of vinyl record prices found in the most widely used platforms.

Feltrinelli

Audioglobe

Subito.it

4.3 New supply trends

Eco-friendly vinyls

In addition to sound performance, a new generation of eco-friendly vinyls is emerging, offering a sustainable alternative for those who wish to reduce the environmental impact of their music listening. Because vinyls are traditionally made from **** PVC, which is recyclable but in the process also releases a toxic material such as chloride. So, choosing eco-friendly vinyl is a growing trend, in line with the general increase in attention to sustainability. Music lovers are increasingly aware of the impact of their consumption choices on the environment and want to support more eco-friendly options.

There are several ways through which vinyl can be considered eco-friendly.

Sustainable materials: the use of eco-friendly materials in vinyl production is a key aspect of sustainability. For example, adopting vinyls made from recycled PVC or bioplastics from renewable sources reduces the environmental impact associated with the extraction and production of new materials.

Environmentally friendly production processes: the adoption of production processes that minimize the use of natural resources and the emission of harmful substances is another important element in the creation of environmentally friendly vinyls. The optimization of printing processes, the use of vegetable-based inks and the use of renewable energy are just some of the ...

5.1 The legislation

Italian regulations governing music production and distribution are quite complex, as they involve several aspects. The most relevant areas are listed below.

Copyright: an instrument by which creative works are protected and enhanced. It arises automatically with the creation of the work: there is, therefore, no administrative formality to be followed to obtain its recognition. In addition, the copyright law (***).

There are two types of author's rights: patrimonial rights and moral rights

Patrimonial rights are the exclusive rights of the author to economically use his work in any form and manner, to authorize any kind of public dissemination of his work--reproduction, performance, representation or other forms of use--and to receive remuneration for it.

Patrimonial rights are independent of each other: they are therefore exercisable separately or jointly. Moreover, they may relate to the work in its entirety or to each of its parts.

Unlike moral rights, patrimonial rights are renounceable, transferable to third parties, and have a time limit: they last, in fact, for the entire life of the author and up to ** years after his death (***). After that period, the work falls into the public domain and is freely usable.

SIAE (***): an organization that manages copyrights in Italy. All those ...

6.1 Segmentation

• Europress Vinyl srl
• Easyreplica International srl
• Subito.it
• Elettroformati srl
• Shelve srl
• Audioglobe srl
• Feltrinelli s.p.a