With the recent explosion of the mainstream popularity of Electronic Dance Music (EDM), the biggest record labels in the business have begun to take notice. Ben Sisario, an arts reporter for the New York Times who focuses on covering contemporary music trends, reported that Sony has struck an important deal with independent EDM label, Ultra Music. The bottom line is that Sony has acquired distribution rights, and will receive a market share of Ultra’s sales. Ultra also benefits in that their profile is raised considerably in the music world, and they now have access to Sony’s vast resources. Not to mention that Patrick Moxey, Ultra’s president, will be named Sony’s president of electronic music.
Universal, Sony’s biggest rival, has recently closed a $1.9 billion deal with EMI music. The respective acquisitions of the two smaller electronic music companies is significant. The biggest companies in the game rushing to partner with independent electronic music labels, shows that certain people are expecting the electronic music trend to be a highly lucrative investment. On this Ben Sisario accurately says, “Last year, the growing popularity of electronic dance music, or E.D.M., brought out the deal-makers of the music industry as if drawn to the scent of prey.”
Another example of this is trend, in yet another market where EDM has a strong influence, is the live performance market. Live Nation, one of the largest event producing companies in the music industry, is said to be teaming up with SFX entertainment to buy Insomniac Events, which itself puts on the biggest shows (such as raves) in EDM specifically. The company has been so successful in its niche that it has drawn, as Mr. Sisario aptly put, two of the biggest names in live music.
Suffice to say, EDM is growing in popularity and some of the wealthiest music companies have taken notice with ravenous eyes.