A More Balanced Look at the Future of EDM
I can recognize that I may have painted a dim future for EDM culture and festivals, and that’s my own fault for focusing so much of my coverage on the unfolding SFX debacle. I know I bear an unreasonable amount of resentment towards how Robert Sillerman approached the music and promotion industries, and in large part that may be due to the fact that he represents much of what has been traditionally kept out of our culture, big business. Electronic music has evolved from its days as a counterculture movement steeped in a tradition of illegal warehouse parties and basement raves to a mainstream commodity with seemingly limitless value, and that inevitably attracts money hungry corporations. For the EDM industry, that profit driven, business minded machine has come in the form of SFX Entertainment.
In an interview with NPR Sillerman was quoted saying that his interest in EDM culture is more sociologically driven than by aesthetic. He goes on to explain that his business strategy centers around sociological theory and he believes that, “The digital generation decided not to reflect, but to interpret,” in regards to his understanding of his demographic. To be honest, he’s not wrong, he’s actually spot on with that interpretation. The issue lies his disconnect with the culture, rather than immersing himself within the culture and learning its true value, or what it means to “interpret” as he so aptly put it; Sillerman observes from a distance, calculating his next move and deciding how to build up his investment. By following the money so closely, Sillerman and resultingly, SFX are blind an overwhelming majority of the music industry, as put by Drew Daniel of Soft Pink Truth and Matmos, "There are still plenty of ways that this music can circulate where it's not tethered to money, whether it's a SoundCloud culture of people making and sharing weird forms, or whether it's house parties that are literally house parties, where you aren't paying to get in the door."
These very house parties are where Insomniac Events founder and CEO Pasquale Rotella first found his footing, growing from illegal outlaw parties on the West Coast to managing the biggest (and best) festivals throughout the US. While now in charge of events such as Electric Daisy Carnival Las Vegas and Electric Forest, Rotella has always made sure to carry the same energy, passion, and attitude from his roots in underground parties, all the way to the main stage.
Rotella’s perspective incorporates his experience and time spent as an EDM fan, EDM promoter, and CEO of an EDM events company, along with a deep seated passion for the music itself. Rather than remaining focused on the festivals that have already gained infamy and attract hundreds of thousands of fans, he looks to expand. Rotella tells Rolling Stone that, “I do think the West Coast is saturated, the East Coast is saturated in some areas, but the middle of America could use some festivals - not on the scale of what people are striving for.” Rotella points out the eventuality of a plateau for attendance record breaking festivals such as EDC Las Vegas and MysteryLand; to continue expanding they have to continue to attract attendees from around the world, and to attract a wider range of attendees they have to raise production values and lower profits.
This is the trap SFX has found itself in; their latest second quarter report reported “revenue of $121 million, 81% ($98 million) of that from ticket sales and sponsorship at live events such as Life In Color Austin, Rock In Rio Vegas and Electric Zoo Tokyo. Service costs, comprised of talent and production payouts, came in at $86 million- just $12 million less than event revenue. SFX reported an overall operating loss of $27.8 million” according to Forbes.
Sillerman’s inability to view SFX Entertainment as a business rather than an investment ultimately left him incapable of leading SFX Entertainment into the future. His lack of understanding and disconnect from EDM culture lead him to focus on building his profit rather than taking care of the events that made the companies, consumed by SFX, successful in the first place.
What I really want to get across is that EDM and festival industry will not die with SFX Entertainment. Robert Sillerman cannot singlehandedly destroy a culture, and without a serious change in his approach to managing his company, he will be phased out before he can do any lasting damage. I have no doubts whether electronic dance music culture will live on, regardless of any corporate entities that may stand in its way.
To hear more on EDM and Rotella via Forbes, click here.
For more on SFX Entertainment's impact via NPR, click here.
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