An Unlikely Investment

As you already know, I am a big fan of electronic dance music. It turns out, I'm not the only one. I'm not talking about the millions of EDM fans around the world. I'm talking about investors. For years the EDM industry has consisted of up-and-coming DJs, veteran artists, and weekend-long festivals. These festivals are all around the world; some are annual, like Tomorrowland, and others are traveling acts, like Sensation White. These festivals have become valuable brands, which are able to sell tickets on their name alone... though headlining DJs help to amp up the crowd. For example, for the Electric Daisy Carnival, which just expanded to the New York area (it's usually in Las Vegas), 60,000 tickets at $100 sold out in three hours. That was before the headliners had even been announced. It's not only about the incredible lineup, but it is also the expectations of the audio-visual performance that makes these festivals epic. They are (without fail) absurd, breathtaking, etc., etc. They're indescribable.

Sensation White

This music genre has shifted from being a marginal part of the music business to a fundamental segment of the mainstream. It's appealing due to a frequent flow of fresh stars and its huge youth following. "If you're 15 to 25 years old now, this is your rock 'n' roll," said Michael Rapino, the executive of Live Nation Entertainment. The success and profit margins of these festival promoters has attracted various potential investors from the music industry and Wall Street. Though no official offers have been made, this rush to invest can be likened to the dot-com era. It's growing in the US... fast. Investors want to be the first, and know they need to act before the bubble pops.

These festivals are also a great opportunity for corporate and brand sponsorships. Especially those targeting the EDM-loving youth. Though an association with these rave-like festivals could be risky, I think it provides a great opportunity. But the EDM industry's potential is being recognized quickly, so marketers (and investors) should act fast!

Armin at Electric Dance Carnival

POGS,

AKtually Ashley