The man who merged regional concert promoters in a Rockefeller-esque manner twenty something years ago is back with his sights set on electronic dance music. Robert F. X. Sillerman, the founder of LiveNation, has returned to the music industry to consolidate the concert promoters in your area into one major corporate conglomerate.
Sillerman aims to purchase independent companies that produce events for hundreds to tens of thousands of people and reform them under SFX Entertainment. With a billion dollar budget, don’t expect your local promoters to hold out for long. Disco Productions out of Loisiana was the first to sell out, while Sillerman claims that he is in negotiations with up to 50 more with 15 deals all but done.
When there is less competition in the marketplace the consumer loses. A monopoly on edm events will allow SFX Entertainment to charge whatever they want. Without any alternatives, fans will be faced with the decision of whether the price of the ticket is worth the value of the event. Don’t be surprised if one of the major promoters like Insomniac or Ultra is purchased by SFX soon. Sillerman aims to take the company public this summer.
The recent rise in popularity of the electronic genre has brought a major influx of investors as they look to capitalize on the fans. Hopefully this is not the beginning of the end.
Read more at the NYTimes.
Share On
