[Keeping Tempo With Music Biz] — Super-Serving Vinyl Buyers & Artists Alike: Interview with Alexis Castiel of Diggers Factory

In the midst of music’s digital revolution in the 2010s, Diggers Factory was founded as a way to scale vinyl production for passionate artists who wanted to get their fans physical music products they would love. Physical music sales have skyrocketed since that time, allowing Diggers to evolve into a full turnkey solution that offers its clients a full stack of pressing, printing, shipping, design, distribution & promo services for product runs of all sizes. To learn more, we spoke with Diggers Co-Founder and CEO, Alexis Castiel about the company’s origins, how having open lines of communication with artists has helped it evolve, what’s next for physical music, and more!

Music Biz: Diggers Factory started in 2016, years before the vinyl revival and as music streaming was on the path to become the dominant consumption model. Did you have concerns about starting a physical product-first company at this time, or were you responding to a burgeoning need in the marketplace because of streaming?

Alexis Castiel: When we launched Diggers Factory in 2016, we were definitely aware of the dominance of streaming. It was clear that streaming was reshaping the way people consumed music, but we also saw an opportunity in the physical music space. The demand for something tangible, something collectible, was still there — especially as the digital world became more transient. We didn’t see physical products as a dying medium but rather as a complement to the digital experience, offering something more personal & valuable to both artists and fans. So, it wasn’t just about filling a gap, but about creating something that could co-exist with streaming while addressing a new kind of consumer demand.

Music Biz: Were there particular problems or pain points in the manufacturing, distribution and sale of physical music & merch that you were trying to solve or work around when you decided to start the company?

AC: Absolutely. The traditional vinyl manufacturing process was often slow, expensive, and not flexible enough for independent artists or smaller labels. The minimum order requirements were high, which was a barrier for many creators who couldn’t afford the risk of unsold inventory. We wanted to make the process more accessible, providing a way for artists to produce music with minimal financial risk and get closer to their fans through a more direct distribution model. That’s where our pre-order model comes in — they reduce upfront costs for artists while still delivering a premium product to fans.

Over the years, our model has evolved significantly. While we initially focused on supporting independent and smaller labels, we’ve grown to become a valuable partner for some of the biggest names in the industry. Beyond solving the original challenges around accessibility and affordability, Diggers Factory now offers a comprehensive suite of services, from sales forecasting to pressing, mastering, worldwide fulfillment, webshop management, distribution to stores, design, marketing, and customer service. Today, we’re proud to work with globally recognized artists and deliver tailored solutions that meet the needs of both emerging and established talent.

Music Biz: Diggers offers both direct pressing, quoting artists & labels for the type of product run they want upfront, and pre-order campaigns, allowing fans to fund the production of a record run in a Kickstarter-type model. Anecdotally, which service has proven more popular with your clients? Or is it more a case of different models making more sense for different projects & clients?

AC: It really depends on the artist and their audience but the pre-order model is without a doubt our main system. Campaigns are incredibly popular for artists or labels with strong fanbases, where they know there’s demand but may not have the upfront capital or don’t know how many to produce. It allows them to test the waters with minimal financial risk and optimize revenues by avoiding over/under production. Both models are valuable depending on the client’s needs, and we’ve seen them work side by side in many cases.

Music Biz: Physical music products can be seen as a high financial risk for some groups of artists and labels. What ways do you work with your clients to make sure they are getting the most out of their product run?

AC: Our primary goal is to minimize that financial risk. We provide tools like the pre-order system, which guarantees sales before production begins, and we work closely with our clients to optimize production quantities based on realistic demand. We also advise on merchandising strategies, bundling and pricing to ensure the product appeals to their audience. By combining data insights with personalized support, we help clients maximize their reach and return on investment. We also create assets for social media marketing, offer communication tips for several platforms, and provide suggestions on how to best utilize them in terms of campaign marketing & promotion.

Music Biz: We are a few years past the height of the COVID-19 pandemic and its effects on the music industry landscape, particularly the resurgence in consumer vinyl purchases. Could you give us your assessment on the state of the physical music market today, including vinyl but also CDs and cassettes?

AC: The pandemic certainly reignited interest in physical formats, particularly vinyl, as people sought out more tactile, personal experiences with music while they were stuck at home. Now, we’re seeing that trend continue with strong growth in vinyl sales, but also a renewed interest in CDs and cassettes as nostalgic items. These formats have become more than just ways to consume music — they’re collectibles, they have a story, a physical presence. The market today is healthy, but it’s more about the experience surrounding the music than simply the medium itself. 

Music Biz: Diggers’ production processes allow for smaller-scale product runs of really special packages for music fans. How do you facilitate close contact with your artist & label clients to ensure you are bringing their music & merch to life as close as possible to their original vision?

AC: Communication is key for us. We work hand-in-hand with artists and labels throughout the entire production process, from initial design concepts to final product delivery. Our team is always available to discuss details, whether it’s the packaging, artwork, or even the finer details like color and materials. We make sure we understand their creative vision and give them the tools and flexibility to execute it. By maintaining this close collaboration, we ensure that the final product is something they’re proud to share with their fans.

Music Biz: That direct connection with the most impacted stakeholders can often inspire new ways of working or — how would you say Diggers has evolved since it was founded thanks to feedback from your partner artists & labels?

AC: Feedback has been invaluable in shaping how we operate today. Our clients often come to us with unique needs or ideas that we hadn’t initially considered, and we’ve adapted our processes and offerings accordingly. For example, the demand for more eco-friendly packaging solutions or specific shipping requirements has led us to refine how we handle logistics. We’re constantly evolving, streamlining production timelines, and finding new ways to enhance the overall experience for both artists and fans. 

Music Biz: In addition to producing records & merch for artists to sell in their own campaigns, Diggers also host a Direct-to-Consumer (D2C) storefront and The Vinyl Box subscription for serious collectors of all things vinyl. Can you talk about your D2C solutions and why they were important for the company to establish?

AC: The D2C model was crucial for us to establish because it allows artists and labels to sell directly to their fans without the need for intermediaries. This not only maximizes their profits but also creates a stronger connection between creators and their audience. The Vinyl Box subscription is an extension of that philosophy — it’s about delivering a curated, special experience to collectors who value the discovery and uniqueness of physical formats. Our D2C solutions empower artists to manage their campaigns independently while reaching fans in a meaningful way.

Music Biz: As we wrap up, what innovations, trends or other factors do you think will affect the physical music industry in the short- and near-term future?

AC: I think sustainability is going to be a major focus moving forward. Consumers are increasingly aware of the environmental impact of physical products, so we’ll see more demand for eco-friendly packaging and production methods. Additionally, while vinyl remains strong, we might see a resurgence in other formats like CDs or even new hybrid formats that combine digital and physical elements like we can see in South Korea and Japan, especially in K-Pop / J-Pop. The future will also be shaped by how artists engage with their fans — experiences like exclusive releases, personalized merch, and unique packaging will become even more important as the physical product becomes a way to deepen fan connections.

You can read past “Keeping Tempo” articles via the portal linked here. And, stay tuned for more insightful discussions from our members and partners from across the industry!