Record Production and Distribution — Business Survival Rate
An estimated 44% of record production and distribution businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 15.2%.
Is Record Production and Distribution a Good Business to Start?
With a 44% five-year survival rate, record production and distribution has a below-average survival rate compared to the national average of ~50%. This indicates higher risk of failure — new entrants face significant competitive pressure or challenging economics.
The annual exit rate of 15.2% is elevated. If you're considering entering this industry, ensure adequate capitalization, a clear competitive advantage, and realistic timeline to profitability.
Entry vs. Exit Rates
Annual rate of new businesses opening versus existing businesses closing.
Net positive: more businesses opening than closing (+1.4 pp spread).
Job Creation & Destruction
The industry is losing jobs faster than creating them — which may indicate automation, consolidation, or declining demand. Total employment: 24,861 workers across 3,321 firms.
Want to know how much record production and distribution businesses actually make?
See full revenue benchmarks for Record Production and Distribution →Frequently Asked Questions
- What percentage of record production and distribution businesses fail?
- Approximately 56% of record production and distribution businesses fail within their first 5 years. The annual closure rate is 15.2%, with 417 firms closing permanently in 2023.
- Is the record production and distribution industry growing or shrinking?
- The record production and distribution industry is currently shrinking with a net job creation rate of -2.6% per year. New businesses are entering at 16.5% while 15.2% close annually.
Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.