Electronic music has never really been considered part of mainstream music, but it has been a juggernaut in the world of fringe genres for decades. Now, with acts like Skrillex and DeadMau5 blowing up, industry executives are starting to take notice. Robert Sillerman, the man responsibile for Live Nation, is intent on scooping up prominent Electronic Dance Music (EDM) production companies and using them as part of his business model in which fans are connected to the music through the internet. The plan's finer points are still being developed, but if his vision for the future of EDM resembles the path he took with Live Nation, many fans of the art form have reason to fear it will be corporatized and its promoters conglomerated in no time.
(New York Times) A Concert Mogul Is Betting on Electronic Dance Music
The man who corporatized the concert industry is back, and he wants to dance.
Robert F. X. Sillerman, the media executive who transformed the live music business in the 1990s by combining regional concert promoters into the nationwide powerhouse that became Live Nation, has returned to the business with the first of what he expects will be a string of investments in electronic dance music, the industry’s latest trend.
Echoing his strategy in the concert business, Mr. Sillerman is pursuing independent companies that put on dance festivals, D.J. parties and other events where the crowds might range from a few hundred people to tens of thousands. He said in an interview on Monday that his first acquisition was Disco Productions, a Louisiana company that was founded by a rave promoter, Donnie Estopinal, and puts on events throughout the country.
Mr. Sillerman, 64, said that in addition to that deal he was in negotiations with up to 50 other companies, and had tentative agreements with about 15 of them. He declined to disclose terms of the Disco Productions deal, but said that he expected his new company — which is called SFX Entertainment, reviving the name of his earlier concert business — to spend $1 billion on acquisitions within a year, and that he wanted to take it public this summer.