A Concert Mogul Is Betting On Electronic Dance Music

A Concert Mogul Is Betting On Electronic Dance Music
World
Like Us On Facebook
Like Us On Facebook

Robert F. X. Sillerman has made his return to the music business by making a number of investments in electronic dance music, as the music sensation has become more and more popular. Sillerman has made some other important contributions to the way people connect with music in the past; in the 1990s, Sillerman was the media executive who combined regional concert promoters into Live Nation.

To build this music genre, Sillerman is pursuing independent companies that host dance festivals, DJ parties, and other events that gather larger crowds. Sillerman revealed on Monday that his first attempt is Disco Productions, a Louisiana company founded by Donnie Estopinal.

Sillerman, 64, also admitted to being in negotiations with nearly 50 other companies, and to having tentative agreements with 15 of them so far. Although Sillerman did not divulge the terms of the Disco Productions deal, he said that his new company – SFX Entertainment – is expected to spend $1 billion on acquisitions within a year.

SFX’s plan involves using the internet to connect EDM fans to one another.

“There’s a wave of interest in attending concerts that have less to do with the specific music and more to do with the experience attached to the music,” he said, referring to the appeal of EDM events. “Our thought is that the experience of attending an individual event can be perpetuated and made better by connecting the people, not just when they’re consuming the entertainment but when they’re away from it.”

When the original SFX took off, the company spent $1.2 billion buying dozens of regional promoters to combine into a national organization. In 2000, Clear Channel Communications bought SFX for $4.4 billion. Clear Channel’s concert division, Live Nation, later collaborated with Ticketmaster to create Live Nation Entertainment.

“Bob changed the game that had been in place for decades,” said Josh Baron, the editor of the music magazine Relix and co-author of the book Ticket Masters: The Rise of the Concert Industry and How the Public Got Scalped. “He brought together promoters who were archrivals, and he brought Wall Street to the rock business.”

Although SIllerman’s efforts are impressive, they are only the latest in the wave of corporate interest in dance music. This genre has catapulted onto the mainstream music scene in recent years. Over 100,000 fans attended festivals like Electric Daisy Carnival in Las Vegas and Ultra in Miami. Electric Daisy is sponsoring a business conference in Las Vegas called EDMbiz this week.

Live Nation is also following the trend. Last month, the company bought a big-time British festival promoter, Cream Holdings. Last week, the site announced that it was planning a two-night dance event called Sensation at the Barclays Center in Brooklyn in October.

Ultimately, Sillerman expects his new business venture to bring in profit as dance music’s popularity grows.

“I’m confident we’ll do an excellent job empowering these kids to be as good as they can be,” he said of the promoters he expected to acquire. “I’m also confident that we will create a better experience for the fans. Can we monetize that? If we can, this will dwarf the first SFX. That’s the whole game.”

Elite.

Via NY Times 

Share Tweet
React
Like Us On Facebook
Like Us On Facebook

Preston Waters

Preston Waters is a thinker. He's not your traditional philosophical persona, however, as he leaves no topic untouched. Covering all the bases, from business to women, Preston Waters is the ultimate man's man for Gen-Y.

More In World

World Emily Arata

The First Ebola Case In America Has Been Confirmed

The Centers for Disease Control and Prevention has confirmed the first case of Ebola in the US. While doctors have previously treated the devastating disease, patients up until now had been transported in from West Africa to American hospitals. The man, currently in isolation at Texas Health Presbyterian Hospital in Dallas, arrived at the hospital on Monday with […]

World Emily Arata

Student Protestors In Hong Kong Are Still Getting Their Homework Done (Photos)

As young protestors continue to flood into central Hong Kong, images from eyewitnesses show the startling reality that regular life is still going on. Photos depict students completing their homework, sitting cross-legged on the ground. Even though the country is changing, and these students are part of a massive protest, they’re still making sure to […]

World Sean Levinson

Iraqi TV Parodies ISIS In Bizarre And Hilarious Music Video (Video)

Baghdad has expanded its attack on the Islamic State to the TV screen in the form of a show parodying the militant group. Sunday saw the premiere of “The Superstitious State,” advertised in a trailer that has been playing for weeks, Raw Story reports. Created by the state-run Iraqiya TV, the show’s first trailer pokes fun at […]

World John Haltiwanger

10 World Issues That Are Still Going On, But We Forgot To Care About

We are perpetually inundated with information in this day and age. With the combination of smart phones, social media and the 24/7 news cycle, it swirls around us constantly. In this digitalized age, people have become accustomed to getting their information almost instantaneously. If it doesn’t come quickly, they lose patience. Consequently, this is an era […]

Also On Elite

Humor

Old People In China Work Out A Lot Harder Than You Ever Will (Video)

While you are “resting” between sets at the gym, Chinese senior citizens are acing the monkey bars at lightning speed. This video of a fitness-themed public park in China reveals dozens of elderly people working out to stay fit and retain their health. Whether ab rolling or jump roping, these grandparents are giving their workouts […]

Film

Nerd Alert! The New ‘Star Wars’ Millennium Falcon Has Been Revealed

Nerd alert: We have our first look at the Millennium Falcon from J.J. Abrams’ new version of “Star Wars.” The video comes on the heels of a pretty interesting back and forth between “Star Wars” and Zack Snyder’s “Batman Vs. Superman: Dawn of Justice.” There has been a fun trading of inside jokes and clever tweets […]