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Business News Labels & Publishers
Vinyl growth limited by industry fears
By CMU Editorial | Published on Wednesday 17 June 2009
Sales of music on vinyl have grown rapidly in the last few years, but it seems that this growth could be hindered, because all the vinyl pressing machines are close to being used at full capacity, and manufacturers are nervous about expanding their operations.
According to one source, this maximum capacity has already been hit, in the US at least. They told DigitalMusicNews: “All plants are producing as fast as they can, and are still behind on fulfilling orders”.
But despite business being good at the moment, many manufacturers fear that the current boom in vinyl sales is just a fad and that interest in old fashioned records will soon begin to slump again. As a result, manufacturers don’t want to buy new equipment and retailers are unwilling to devote more shelf space to vinyl until they can see where the trend is headed.
The source continued: “No one knows if this rally will sustain, so no one wants to invest money in new equipment to ramp up production capacity to meet increasing demand. Therefore, we’re probably stuck where we are for the foreseeable future as far as market share”.
