Physical distribution company UDS says that it has just completed its busiest month since it acquired the assets of defunct music and video distributor Cinram Novum back in September 2022. Having moved its operations to a new site in Bicester in August this year, it shipped 3,360,067 units in November, a 26% increase on October.
The stats confirm that, while physical products now account for a minority of the record industry's revenues overall, the sale of CDs and vinyl nevertheless remains a key part of the business for plenty of artists and labels. Physical brought in 16% of the UK industry's revenues in 2022 and the UDS figures suggest demand for CD and vinyl among music fans remained pretty consistent as the 2023 Christmas shopping season got underway.
UDS's Bicester site now handles the distribution for 70% of the UK’s physical music, working for Universal Music, Sony Music, [PIAS] and Cargo, as well as handling invoicing, cash collection and returns services for Warner Music. Given the ongoing importance of physical for at least some artists and labels, the collapse of Cinram Novum last year, and high profile problems at UDS's parent company Utopia Music this year, have been a cause for concern within the industry.
Though sources say that - with the new Bicester base up and running, and the support of a number of key partners at UDS - it feels like some stability has now returned to the supply chain.
In an end-of-year interview with CMU - which will be published over the Christmas break - Kim Bayley, CEO of UK entertainment retail trade group ERA, notes that: "The biggest challenge for physical retailers [this year] has been the move of Utopia to a new warehouse in Bicester. Things are now settling down, but back in the summer it looked bleak. Retailers cannot operate if they have no stock to sell".
Commenting on the new UDS stats today, Bayley adds: “On behalf of all our members, I would like to congratulate UDS for hitting this milestone. It is a testament to the success of a physical music ecosystem in which UDS links labels and retailers, and retailers bring fans together with the music they love. The continuing success of vinyl, CD and even cassette shows that music lovers’ passion for physical formats is far stronger than many of us would have believed possible just a few years ago”.
Drew Hill - who is Managing Director of both UDS and Proper Music Group - says: “As demand for physical music continues to grow, it remains essential that the recording’s business can benefit from a fit-for-purpose supply chain able to service the biggest major to the smallest indie”.
“I am incredibly proud of the infrastructure UDS has built”, he goes on, “with the success of our new warehouse being testament to the collective hard work from industry stakeholders to ensure physical formats can continue to thrive in years to come".