Electronic Music Culture May Be New To Wall Street

SFX Entertainment, the company responsible for the biggest production of live events and content focused exclusively on electronic music, is petitioning for a place on Wall Street. SFX is famous for music festivals such as Electric Zoo and Tomorrowland, each attracting thousands of fans for days of straight music and dancing. Robert Sillerman, head of SFX, originally made his fortune by buying and selling radio stations before developing Live Nation in the 90’s. He established SFX in July 2011 helping to create an industry worth 4.5 billion dollars. The company is looking to expand the electronic dance movement by creating 16.7 million shares expected to be priced between $11 and $13 on October 8, 2013.

One reason for this investment is a large increase in fans over recent years. SFX shows drew 2.8 million fans in 2012, a 22% increase from 2011. These statistics are related to 52 festivals and 738 events. Specifically, Tomorrowland sold out of 180,000 tickets to the 2013 festival in Belgium in one second. In the U.S., 200,000 fans attempted to purchase Tomorrowland tickets, and only 2,000 succeeded. Total attendance at the five largest EMC festivals grew 41% annually from 2007-2012. This growth rate is compared to a 2% increase for the overall concert markets during the same period. Another reason to add SFX to Wall Street is the presence of electronic dance music in the most popular nightclubs. SFX manages a number of establishments in Miami such as LIV, at the Fontainebleau Miami beach Hotel; LIV Sun Life stadium, and STORY. As this movement generates fans and income at a rapid rate it becomes harder to ignore the impact electronic dance music is now having on our culture.

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