Rewinding the tape: How National Audio Company keeps cassette tape culture alive

Though they have lingered in cultural memory, cassette tapes have become less common over time. However, in recent years, as highlighted by NPR, cassettes have experienced a small but notable resurgence, thanks in part to a family-owned company in southern Missouri. Obviously, this unexpected revival would not have a chance without at least a wisp of demand.

Despite the rise of digital formats like CDs, MP3s, and streaming services, and the resugence of vinyl, cassette tapes have found a niche market again, much like vinyl records. According to Billboard, cassette sales have surged by more than 440% in the past decade (and no, that is not a typo). One of the key players in this revival is National Audio Company, a Missouri-based business that has been a staple of the industry for over five decades.

National Audio Company, founded in 1968, just a few years after the invention of the cassette tape, is now run by the Stepp family. Curiously, Steve Stepp, who owns the company, has noted: "The demographic driving the popularity of the audio cassette is not nostalgic about audio cassettes...They weren't around when audio cassettes were the big thing."

Phil Stepp, the current vice president and grandson of the company’s founder, explains that the family has remained committed to the format through the ups and downs of the music industry. They say that, as long as people want it, they're going to keep making it.

When cassette tapes ruled the music world

The company in question really thrived during the 1980s, when cassette tapes became the dominant music format, rather than being sustained by small "audio tape hubs." In fact, one sign of a reluctance to let go of cassettes: Even when CDs became big, it was a regular trend for people to record those CDs into mix tapes.

There was perhaps something romantic about editing and splicing songs together on cassette — it's simply different from sharing a playlist with someone online, as you knew more actual time was put into adding the songs together, perhaps even meticulously, in that physical form.

The invention of the Walkman, a portable cassette player, made it easier than ever for people to listen to music on the go, which significantly boosted cassette sales. Being able to listen to music on the go could make an otherwise boring walk seem like a great reward after a stressful day. They might not say it now, but people loved tapes. In fact, by the mid-1980s, Billboard reported that cassettes were outselling vinyl records.

When CDs attacked

The cassette (and vinyl records) faced a major challenge in the 1980s with the arrival of the compact disc (CD). Though many cassesttes could actually store more music on both sides when recorded, it's true that CDs didn't have the "hiss and pop" of other formats. Listeners were amazed by how silent pauses could wound on a CD-quality recording.

Though CDs could get scratched and skip or simply broken, it was also true that earlier formats could be broken. Everyone who owned/owns tapes remembers (1) tapes flipping in reverse and sounding inadvertently satanic, (2) having to use a pencil to wind them, or (3) having to take a cassette apart to splice the broken tape together with Scotch tape.

At the same time, CDs were troubling in their own ways. It could be baffling how some CDs could be scratched to hell and play just fine, while others could have just one teeny, tiny little scratch and be totally ruined! And what about CDs skipping? Frankly, those moments could be about as infuriating as anything (hell, it ruined Milli Vanili's career!).

Still, many companies that produced cassettes were forced out of business due to the perceived new big format in town. That makes it more interesting that cassettes have been branded "the unlikely comeback kid of music formats."

How National Audio Company survives

National Audio Company managed to survive by diversifying its offerings.

Instead of focusing solely on music, they also produced books on tape and other spoken word products (for those who prefer listening over reading). Steve Stepp recalls how they acquired unwanted equipment from other companies that were leaving the industry. He says everyone thought they were crazy.

In the early 2000s, National Audio began to see a new wave of interest in cassettes, particularly from mainstream bands like Pearl Jam and The Smashing Pumpkins, who continued to release their albums on tape (though, ironically, the Pumpkins' Billy Corgan gets tired of nostalgia).

Independent musicians also found value in cassettes because they were a more affordable and DIY-friendly option for releasing music. Today, National Audio serves around 5,000 independent labels worldwide, providing a crucial resource for artists looking to produce physical media in smaller quantities (though there's no law saying "Major" labels couldn't get more into tapes again).

There have been ups and downs. The company's future was put at risk in the 2010s when the global supply of magnetic tape began to dry up. At the time, National Audio was manufacturing cassettes but did not produce the magnetic tape itself.

With major companies ceasing production, the Stepps faced a critical shortage. To solve this, Phil Stepp, a chemist and former neuroscience professor, led a team to develop their own recipe and manufacturing process for music-quality magnetic tape.
Back in 2017, Steve Stepp had joked that they had "the finest equipment the 1960s has to offer."
However, it seems they have stemmed the rising crisis in a largely DIY fashion.
This complex process involved sourcing materials from across the globe and years of trial and error.

The cassette tape still lives...for now

Today, National Audio has not only solved its tape supply issues but has also become one of the largest manufacturers of cassette tapes in the world. They now produce around 30 million tapes annually, using a combination of old and new technology, including repurposed cigarette-wrapping machines and modern magnetic tape coating lines. They have mastered the intricate process that keeps their production running smoothly.

Through innovation, persistence, and a deep respect for the medium, National Audio Company has ensured that the cassette tape continues to have a place in the modern music landscape.

And here's a song that perfectly catches whatever romantic imagery exists in the cassette tape format. Rewind the tape, baby!