Spin city: Melbourne loves records – but is it really the vinyl capital of the world?
Bởi Maksym Misichenko · The Guardian ·
Bởi Maksym Misichenko · The Guardian ·
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While Melbourne's vinyl scene is culturally vibrant and growing, the panel consensus is that it's not yet a sustainable economic model. Key risks include rising production costs, capacity constraints, and reliance on loss-leader strategies. The potential opportunity lies in expanding local pressing capacity and stable distribution to support a more robust secondary market.
Rủi ro: Rising production costs and capacity constraints
Cơ hội: Expanding local pressing capacity and stable distribution
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When the needle drops, Elias Rahbani’s 1972 album Mosaic of the Orient (Näi, Buzuk & Guitar) cascades out from a Technics SL-1300GE-K turntable and a colossal pair of Tasmanian-made Pitt & Giblin Superwax speakers. I’m in the Listening Room – a temple for audiophiles, and to the vinyl record – in Melbourne’s Acmi, as part of Rising festival’s new exhibition The Vinyl Factory: Reverb. The gear sounds extraordinary – and it is only one story in a room filled with countless more.
Rising music curator and Triple R host Yasmine Sharaf remembers the moment she spotted that rare Rahbani record, on a 47C day at a Cairo market. “Record shopping is really hard in Egypt. Everything usually has no cover and is covered in dust. It was sitting on the very top in complete sun. Somehow in perfect condition, not warped or melted. You’d think it would just be a puddle. I feel I was supposed to find it and save it.”
Stories like this one are why record collectors love vinyl: those fragile repositories of music, personal memories, history, politics, technological advances, social movements, migration and culture – all of which is celebrated in The Vinyl Factory: Reverb. One standout inside is a documentary on Detroit techno (the genre’s birthplace) that links the transatlantic slave trade to the city’s funk musicians, auto industry, resident poets and Afro-futurist dance music. Then there’s Carsten Nicolai’s 1998 work, bausatz noto, where attendees can manipulate four turntables to create their own live compositions from records loaded with endlessly looping sound fragments.
In the Listening Room – a voluminous space capable of holding about 40 people on tiered seating and padded stools – Sharaf has curated a selection of records, from Miles Davis to Ryuichi Sakamoto, that visitors can ask an attendant to play. “This is not performance art, you don’t need to watch me. Come pick a record,” Cara, a gallery attendant, calls out.
“Vinyl culture has had a tendency to be gatekept and controlled by middle-aged white dudes of certain disposable income levels,” says Sharaf. “We’ve made so many progressions in the last five or 10 years … opening it up to young people of different experience. It could have so easily been a Bowie listening room.”
It’s all happening in the city recently dubbed “the vinyl capital of the world”, thanks in part to a report by the Victorian Music Development Office on the state’s vinyl music industry, For the Record, which claims Melbourne has the most vinyl record stores per capita in the world (5.9 stores per 100,000 residents). While accurate on its own terms, the per-capita statistic is arbitrary in relation to the experience of record shopping in, say, Tokyo (just 2.3 stores per 100,000 residents, according to the study). Take Shinjuku’s Disk Union main store, one of many such examples, which is effectively eight hyper-specific stores in one.
Melbourne’s claim to vinyl capital of the world is arguably skewed by Tokyo’s population density; a comparison of store inventories would paint a more accurate picture. Many of the prominent secondhand sellers in Melbourne’s “Collingwood-Fitzroy corridor” (which has 19 record stores over 2.5 sq km) – including The Searchers, Plug Seven and Licorice Pie – prop up their inventories with fastidiously well-kept Japanese imports. When I visited The Searchers on Smith Street recently, one of the owners was in Japan on one of several annual buying trips.
But what we do know is Australians are buying more vinyl year on year, spending $44.5m in 2024, up 5.6% on the previous year. Vinyl currently makes up 72.8% of the total revenue we spend on physical media.
But while we are spending more on vinyl, many independent labels and artists are not driven by profit – particularly given the rising production and shipping costs. Vinyl releases do supplement meagre streaming revenues, but they carry a different sort of value too: as a physical product that bestows cultural relevance on an artist or band.
“I don’t want to call vinyl an advertisement, it’s not just that – but it’s a loss leader,” says Corey Kikos, who, with Maryos Syawish, puts out techno records as the duo Sleep D on their label, Butter Sessions.
Kikos and Michael Kucyk, the founder of the label Efficient Space, will stage their second Independent Music Exchange on 7 June at Northcote Town Hall – a sprawling record fair for more than 50 independent labels.
Kucyk has run Efficient Space for 10 years (he is also hosting The Listening Room on 17 July) and has dedicated a significant amount of his output to rereleases of obscure independent music, often with elaborate liner notes and sleeve designs. Kucyk gives me a perplexed stare when I ask if pressing vinyl is becoming economically unviable.
“I’ve never really thought of an alternative,” he admits. “But at no point would I reconsider another format or going strictly digital. I’ve been buying records for 20 years. It’s like oxygen. People keep photo albums, I keep records.”
The claim that Melbourne is the vinyl capital of the world may be up for debate – but the city sure does love it. It’s no accident the hospitality mega-group Merivale has co-opted vinyl’s cultural cool and opened LBs Record Bar, a vinyl-focused bar, as its first Melbourne venue (JAM Record bar, also operated by Merivale, opened in Sydney in 2024). And “listening bars” – venues that sell themselves as places to listen to curated music on high-quality audio systems – have swept Australia’s capital cities in recent years. Many claim to be inspired by Japan’s *jazz kissa*, but it’s rare to see the same quiet reverence for the music among the punters here.
“There are so many great bars in this city with really good speakers but they’re not really listening bars,” says DJ Nik Thorup, who regularly plays at Waxflower, one of Australia’s more authentic listening bars. “All you should be able to hear is the music.”
Thorup and yoga teacher, DJ and architect Stephanie Kitingan co-own Tender, a sound and movement studio in Brunswick that holds three-hour, vinyl-only “deep listening” sessions every week, revolving around a set of Pitt & Giblin Superwax Mini speakers. Talking during the sessions isn’t permitted, but other free-form relaxing activities or moments of connection are encouraged.
For people like Kitingan and Thorup, listening to vinyl is a way of reclaiming one’s attention from the algorithms designed to steal it.
“You come in and take your shoes off. There are no mirrors anywhere. The sound is the anchor. Even the yoga practice is not really an exercise focus. It is philosophical, it is breath,” says Kitingan. “Attention and intention really underlies what we do.”
At the session I attend, there are roughly 20 folk sprawled out on yoga mats and pillows among soothing low lighting, timber and acoustic panels, designed by Kitingan. One listener stretches. Others knit, draw, read or embrace. One or two scroll. Some lie immobile, eyes covered by weighted beanbags. For three hours they share one simple thing: the sounds coming from the grooves on a flat black disc, as it spins around and around and around, until it’s time to flip to the other side.
Most record collectors will tell you that it’s about the community as much as the music. For Sharaf, it’s the crossover of the two – and all those record stores, venues, bars and clubs – that make Melbourne a vinyl lover’s dream.
“You’ve gotta make fertile ground for music culture to grow. We have so many record stores. In bar culture now there’s [often] a DJ playing really deep cuts. Our music literacy has become so high,” she says. “This is what has made Melbourne such an amazing music city. It’s very much something that is worth protecting.”
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*Rising and Acmi’s The Vinyl Factory: Reverb is on now. The Independent Music Exchange runs 6–7 June at Northcote Town Hall. Tender’s “deep listening” sessions run weekly.*
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"Vinyl's cultural hype in Melbourne masks thin economics where rising costs make it a loss leader rather than scalable growth driver."
The article frames Melbourne's vinyl scene as culturally vibrant with $44.5m in 2024 Australian spending (up 5.6%, 72.8% of physical media), yet undercuts its own 'capital of the world' headline by admitting the 5.9 stores per 100k metric is arbitrary versus Tokyo's deeper inventories and Japanese imports sustaining local shops. Independent labels treat vinyl as a loss leader amid rising pressing and shipping costs, not a profit driver, while streaming still dominates revenue. Cultural events and listening bars add visibility but do not address whether volume growth translates to sustainable margins for artists or retailers.
Melbourne's per-capita edge and high music literacy could still drive faster adoption and event-driven sales than denser but more fragmented markets like Tokyo, sustaining the trend even if unit economics stay thin.
"Melbourne's vinyl renaissance is culturally vibrant but economically fragile: the article provides no evidence that rising consumer spending translates to sustainable margins for labels, pressing plants, or independent retailers facing rising production and shipping costs."
This article celebrates Melbourne's vinyl culture but conflates cultural enthusiasm with economic viability. Yes, Australians spent $44.5M on vinyl in 2024 (up 5.6% YoY), and yes, Melbourne has 5.9 record stores per 100k residents. But the article itself admits the 'vinyl capital' claim is methodologically dubious—Tokyo's Disk Union alone dwarfs most Melbourne stores. More critically: independent labels explicitly call vinyl a 'loss leader,' production costs are rising, and the article offers zero evidence that this spending translates to sustainable business models. Listening bars and deep-listening studios are lifestyle venues, not revenue engines. The narrative romanticizes community over commerce.
Vinyl's 72.8% share of physical media revenue and consistent YoY growth could signal a genuine, durable cultural shift among younger demographics willing to pay premium prices for tactile, algorithm-free experiences—exactly the demographic that drives long-term consumer spending.
"Vinyl has transitioned from a music distribution format to a luxury hospitality experience, making its long-term viability dependent on discretionary spending rather than music consumption trends."
The vinyl resurgence is a classic case of 'premiumization' in a digital-dominated market, where physical media serves as a high-margin luxury good rather than a utility. While the $44.5m Australian spend reflects a 5.6% growth, this is a niche segment of the overall music industry. The real economic story isn't the growth of record sales, but the integration of 'experience-based' retail—listening bars and curated events—into the hospitality sector. This shifts the value proposition from the product to the environment. However, the reliance on independent labels and 'loss leader' strategies suggests that the supply chain remains fragile and highly susceptible to rising logistics and manufacturing costs, which are not currently offset by the low-volume, high-touch business model.
The 'vinyl capital' narrative is likely a marketing construct masking a fragile, hobbyist-driven ecosystem that lacks the scale to survive a significant contraction in consumer discretionary spending.
"Melbourne’s vinyl scene signals growing cultural demand and niche monetization, but its macro viability depends on pressing-cost relief and scalable business models."
Melbourne’s vinyl culture is real and growing, but labeling it the world’s vinyl capital may overstate macro impact. The per-capita store metric is alluring yet shallow—volume doesn’t equal revenue, margin, or sustainable growth beyond a concentrated urban cluster. Key risks include rising pressing costs, capacity constraints at plants, and higher shipping/logistics expenses that squeeze indie labels and retailers. The trend benefits niche venues and enthusiasts, yet remains exposed to macro headwinds and a potential drift back toward streaming if economics worsen. So the story is a cultural hotspot with potential spillovers, not a guaranteed durable growth engine for the broader sector.
The strongest counter is that Melbourne’s cultural momentum could attract real investment in pressing capacity and distribution, turning this niche into a scalable, recession-resilient business if costs stabilize.
"Melbourne's density may create resale liquidity that hedges production cost risks Tokyo's model does not test."
Claude flags the loss-leader problem but ignores how Melbourne's per-capita store density could speed secondary-market liquidity for used vinyl, giving retailers a margin buffer that Tokyo's import-heavy model lacks when new pressing costs spike. The article never mentions resale volumes, so we cannot tell whether this offsets thin primary margins or merely delays the reckoning if discretionary spending contracts.
"Secondary-market liquidity in a loss-leader supply chain is a symptom of structural weakness, not a buffer against it."
Grok's secondary-market angle is sharp, but it assumes used vinyl liquidity scales with store density—no evidence supports this. More critically: used vinyl sales cannibalize new pressing revenue for labels already calling vinyl a loss leader. If resale becomes the margin engine, we're watching a deflationary spiral where retailers profit by moving inventory that doesn't fund new artist production. That's not a sustainable ecosystem; it's inventory arbitrage masquerading as cultural vitality.
"A robust secondary market is essential for lowering the barrier to entry for new collectors, which ultimately supports, rather than cannibalizes, the primary market."
Claude, your 'cannibalization' argument misses the symbiotic nature of music retail. Used vinyl acts as a loss-leader-to-margin bridge; it drives foot traffic that facilitates high-margin new-release sales. Without a healthy secondary market, the cost of entry for new collectors becomes prohibitive, stifling the top-of-funnel growth needed to justify new pressings. The real risk isn't cannibalization, but the lack of localized pressing capacity, which forces a reliance on expensive, volatile international logistics that currently erode all retail margin.
"The bigger risk is unmet pressing capacity and volatile importing logistics; unless Melbourne attracts local pressing and durable distribution, resale-driven margins won't translate into scalable, recession-resilient growth."
Claude's ‘used vinyl funds margins’ point is valid in theory, but it misses the gating risk: without expanding local pressing capacity and stable distribution, Melbourne’s resale liquidity cannot reliably sustain margins. A buoyant secondary market only buffers thin primary margins temporarily; if capacity constraints persist and international logistics stay volatile, new releases will remain expensive and delayed, choking growth. The path to scalability is hard investment in presses and distribution, not just foot traffic.
While Melbourne's vinyl scene is culturally vibrant and growing, the panel consensus is that it's not yet a sustainable economic model. Key risks include rising production costs, capacity constraints, and reliance on loss-leader strategies. The potential opportunity lies in expanding local pressing capacity and stable distribution to support a more robust secondary market.
Expanding local pressing capacity and stable distribution
Rising production costs and capacity constraints