Travis Scott Sold ‘Utopia’ Vinyl for $5 (and Likely at a Loss) — Could the Strategy Catch On?
Written by djfrosty on September 12, 2023
In August, Travis Scott fans on Reddit sprang into action. “$5 VINYL GO!” one user wrote in r/travisscott (234,000 members). The call-to-arms post came with a photo of a discount code that made buying the rapper’s double-LP Utopia — once $50 — about as costly as a gallon of milk in New York City. That price point proved irresistible: “This gon be my first vinyl why tf not,” one devotee responded. “Travis … gonna be selling 100k [in] his 4th week,” another added.
That fan wasn’t far off: Scott sold 88,500 vinyl copies of Utopia — 161,000 album-equivalent units overall — in the U.S. through his web-store in his fourth week atop the Billboard 200 albums chart, according to Luminate. Between the July 28 release of Utopia and Sept. 7, fans have snapped up more than 331,000 double LPs.
Vinyl album sales have been growing for 17 straight years, and in 2022 they accounted for $1.2 billion in revenue in the U.S., according to the RIAA. As the format has become more popular, a growing number of stars have moved to capture fan demand by releasing LPs of their own, often leading to eye-popping first-week numbers. What made Scott’s record rollout unusual was that some Utopia vinyl was available for $5 — both through bundle deals, where fans could get a record at that low price if they bought more than $120 worth of merchandise, and some stand-alone copies via discount codes.
At that price, many in the industry believe the rapper was not making a profit. One manager who spoke on the condition of anonymity says he was recently quoted around $7 a unit to manufacture an order of double vinyl. In a senior executive’s experience, “it costs $4 to make a single LP if it’s super bare-bones and you’re making a high quantity,” and more for a double LP. Throw in mechanical royalties, typically paid out on records at a rate of 12 cents per song, and it’s hard to imagine that a $5 double-record could make any money.
Even if Scott were selling some records at a loss, he’s not losing money overall: The rapper is famous for moving mountains of merch, some of which goes for a good deal more than $50. But the ability to offer up some records at $5 — $4.99 is the lowest price an album can be sold at and still count towards the Billboard 200 — shows the extent to which stars with fervent fan bases and formidable merch operations operate in a different world than most artists. And since an album’s streaming numbers usually dip as listener enthusiasm begins to wane after debut week, it’s possible that more artists might start to mark down records to help bolster demand and chart placement.
Luminate only receives data on total record sales, not the number of Utopia LPs sold at different price points. Scott’s label partner, Epic Records, directed questions about the rollout to the rapper’s manager, David Stromberg. Stromberg declined to comment on the record about vinyl pricing or sales strategy.
Executives say that selling some copies of Utopia at a 90% discount makes sense in certain circumstances. “We’ve lost money on individual album sales for chart position,” notes one marketer at a rival major label. A star could “spend $200,000 on ads and hope they convert [into streams],” the marketer continues. Alternatively, he suggests, “sell discounted albums, you lose money on those, figure it out on the back end, and hope the chart visibility helps with the overall story.”
“It’s a marketing exercise: In a genre [hip-hop] where streams dominate, be the only one to have a huge physical number,” adds another senior label executive not involved with Scott’s rollout. The price cut leads to a “sales bump and fan engagement.”
Sure enough, many rappers have ignored the vinyl wave. Steve Harkins, vp of sales and marketing at the distributor Ingram Entertainment, told Billboard earlier this year that “labels have said they’ve had challenges convincing artists and management to release their titles physically in some cases,” leading to a shortage of new albums on vinyl from rappers.
There are exceptions to this rule: Tyler, the Creator, has sold more than 360,000 LPs from across his catalog already this year, according to Luminate, while Kendrick Lamar has sold close to 270,000. But Luminate data show that at more than half a dozen rap albums that earned more than 500,000 album-equivalent units in 2022 had no vinyl component, including a pair of Drake releases, Lil Durk’s 7220, and Polo G’s Hall of Fame.
In August, Stromberg explained to Billboard that rap faces “inherent disadvantages” when it comes to “manufacturing physical music product.” “Due to the fluid nature of rap collaboration, leak culture and last-minute changes, vinyl lead time always far exceeds album delivery dates for rap,” he continued. “Pop artists are usually able to turn in their albums five to six months early and manufacture a significant amount of vinyl with a robust retail plan in place. Vinyl often ends up accounting for well over 50% of these pop artists’ first-week totals, whereas hip-hop is judged entirely on streaming.”
Key components of the Utopia rollout, Stromberg added, were “manufactur[ing] our own vinyl” and crafting “an e-com plan to leverage day-and-date physical music for the first time in modern mainstream rap.” So far, so good: Utopia recently passed Taylor Swift‘s Midnights (around 318,000 copies) to become the second biggest-selling vinyl album of 2023, behind only another Swift release, Speak Now (Taylor’s Version) (roughly 368,000).
And the big discount on Utopia helped some first-time vinyl buyers pull the trigger, according to their Reddit comments. “I am such a cheap ass,” one fan wrote on r/travisscott, “… but I actually bought a vinyl today because you can’t even get crappy vinyls for $5 nowadays. What a steal.”
“I don’t even buy vinyls,” another fan responded. “But $5 is $5.”