In an exclusive feature with Mixmag Global, Pete Tong says he believes that for the club landscape in Ibiza “only the strong and innovative” will survive. Competition has ramped up not only between the clubs in Ibiza, but the once hailed dance mecca of the world is facing strong challenges from upcoming areas like Las Vegas.
Standard economic theories tell us that competitive markets typically yield lower prices for consumers, improvements on technology, innovation and more widespread information so that consumers can make better decisions. However, many would agree that Ticket prices haven’t come down yet in the United States. This may indicate that the market has not yet reached its saturation point. Even though new music festivals are appearing everywhere, the new competition has not yet affected how the major players price their events.
In the next few months alone the United States will see European imports like TomorrowWorld, Mysteryland and Q-dance. Meanwhile Las Vegas added Hakkasan and The Light Nightclubs this year. Allegedly funded by a billionaire oil mogul, Hakkasan sparked a bidding war for DJ talent in Las Vegas and is rumored to be paying Calvin Harris and Tiesto double what they were making at the Wynn properties (Encore, XS).
Eventually things will settle down and all of the fake promoters more interested in their image than their events will go back to doing something else instead, leaving the SFX Entertainments of the world to fight the Live Nations. Unfortunately it might be a while.
via Mixmag
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