Description: For 2017, the first time since 2011, combined sales of CDs and vinyl albums outpaced digital downloads of music. Meanwhile, music streaming services such as Spotify continue to grow, and in 2017 streaming accounted for roughly 2/3 of industry revenues. Vinyl, at only $400 million or so of an industry close to $9 billion, is another growth area. After a hiatus of close to 30 years, Sony opened a vinyl pressing plant this past year.
Date: March 24, 2018
1) When you go to a party or social gathering where music is being played, what medium are students using?
2) If you were a cost accountant at Sony, what might be some of the calculations you would be asked perform to support the decision to open a vinyl LP pressing plant?
3) Why do you think vinyl has seen this resurgence of sorts? What business opportunities does this offer?