Friday, October 9, 2015

EDM bubble burst?

Mark Hogan on "EDM after the drop", focusing on the drastic devaluation of entertainments mogul Robert Silllerman's company SFX, which was buying up rave promoters and so forth like nobody's business only a year or tow ago.

"On October 14, SFX faces a self-imposed deadline for considering offers to buy all or part of the EDM-focused conglomerate. SFX's D-Day arrives after multiple postponements, and after its colorful chief executive, the veteran radio and live music impresario Robert F.X. Sillerman, scrapped an offer to buy the roughly 60% of the business he didn't already own. The backdrop is a precipitous fall in SFX's market value, from more than $1 billion when it went public in October 2013 to around $70 million as of October 5."

Choice quote from Philip Sherburne:
"Just sonically, Avicii or mainstream EDM sounds to me like Van Halen's 'Jump,'. It's the same synthesizers; it's the same pleasure centers. You could say that Alesso is Bon Jovi. Bon Jovi took metal or hard rock and aimed it squarely at a very mainstream, middle-American public. That's exactly the same thing: These artists have taken what was once a subculture and redesigned it along a pop format. I don't know the economics of hair metal, but it seems to me pretty clear that [with EDM] we're in the era of the Wingers and the Whitesnakes."

If only EDM was as good as "Jump"...

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