THE GROWTH OF EDM

THE BEAT DROPSTHE CHARTS RISEthe Growth of the EDM Industry

Some people believe that electronic dance music is on its way out. Some see EDM as just another fad, like its ancestor, Disco. Many, however,

believe that this is just the beginning for DJs all over the world.

For world-renowned artist Tiësto, EDM is a genre that is constantly being reinvented. "[EDM] keeps evolving; every year something new comes up, and now it's at the highest it ever has been,” he explains. "It has been more than 20-25 years that this music is existing, so it's already amazing."

THE EVOLUTION OF EDM

WHAT EDM FANS SAY

Detroit, 1970s: “Frankie Knuckles” pioneered House music with a handful of disco records, two turn-tables, and a single mixer.

America, 1970-80: a decade of Disco spirals into a “Disco Sucks” counter-culture.

Mid-1980s: The genres of techno, rave, and house were born.

2014: DaftPunk takes home 5 Grammy awards, including Album of the Year.

1998: the Grammy Awards add a “Best Dance Recording” category.

2000s: Drum and Bass, Dubstep, Happy Hardcore, and Trance join the list of electronic genres—“EDM” becomes the widely accepted term.

New York, 1989: American DJ Frankie Bones introduces rave culture to the States. In response to clubs seeing DJs as un�t to perform, “Storm Raves” were created.

2007: The �rst Electric Daisy Carnival

2007: The �rst Electric Forest Festival

Mid-1999: Two-thirds of the acts at the inaugural Coachella festival were electronic. First Ultra Music Festival.

1990s: Technology �ourishes; musicians embrace it. “Electronica” comes to U.S. and is adopted by nearly every genre.

2009: David Guetta reaches mainstream this year with the release of One Love; in 2011, he is deemed #1 DJ in the world by DJ Magazine.

2006: DaftPunk’s debut at Coachella revolutionizes EDM. Electronic music gains respect and recognition in the commercial music industry.

2013: The �rst Tomorrowworld festival

The average electronic fan attends 3 to 5 EDM

festivals per year.

61% of EDM fans plan to attend more events next year compared to 39% of

fans of other music genres.

73% of EDM fans say that their friends’ posts on social media make them want to attend an event even more compared to

36% of fans of other music genres.

SFX Entertainment’s worldwide festival attendance grew at a 36% annual growth rate between 2011 and 2013. By 2017, attendance is projected to grow another 11%.

Today, North America alone represents approx. 29% ($2 billion) of the global market.

In 2012, sales of Electronic/Dance tracks grew almost 3x faster than sales of other mainstream genres:

Today, live events represent the largest part (4.2b) of the $6.2 billion global EDM industry.

ELECTRONIC/DANCE: 36%

COUNTRY: 13%

ROCK: 11%

LATIN: 2%

POP: -1%

HIP-HOP/R&B: -5%

In 2012, the global EDM revenue grew 13% (to $4.5 billion)

Global EDM Revenue Growth

EDM is the Fastest Growing Genre:

$4.5 billion

$.8 BILLION IN PRODUCTS/BRAND SPONSORSHIP

$1.3 BILLION IN RECORDED MUSIC.

$2.5 BILLION IN LIVE MUSIC/BROADCAST.

EDM is Thriving withLive Music Events:

$6.2 billion

$6.9 billion (up 12% from the previous year)

2012

2013

2014

Capacity at EDM festivals has increased tenfold since 2007, now at 1.4 million with major festivals reporting great increases in attendance:

Compare these to music festivals for other genres:

Forbes' top 10 EDM artists made a combined $268 million in 2014, an 11% increase from 2013.

TOMORROWWORLD

160,000 attendees, from over 75 countries in 2014

ELECTRIC DAISY CARNIVAL

400,000 attendees in Las Vegas in 2014

BONNAROO

Under 100,000 attendees

FIREFLY

80,000 fans

ELECTRIC ZOO

26,000 attendees in 2009

125,000 attendees in 2013

ULTRA MUSIC FESTIVAL

45,000 attended in 2005

150,000 people attended in 2011

345,000 people attended in 2014

Calvin Harris brought in $66 million alone last year (that’s almost 1 out of every 100 dollars generated in 2014’s $6.9 billion market).

John Boyle, the CFO of Insomniac Events - "This isn’t disco. This is hip hop with a lot more legs." "There’s a fundamental difference [between EDM and other music cycles]," Boyle says. "Technology."

Resources:http://www.cnn.com/2014/12/18/world/how-did-edm-get-so-popular/Markets Research - SFX Entertainment - EDM Pure Play. N.p.: Deutsche Bank Securities, 2014. Print.http://www.billboard.com/articles/business/6575901/global-edm-market-hits-69-billionhttps://thump.vice.com/en_au/article/electronic-music-industry-now-worth-close-to-7-billion-amid-slowing-growthhttp://www.getfesty.com/what-happened-to-rock-the-bells/http://www.theverge.com/2014/7/1/5857152/shut-up-and-spend-inside-the-edm-electronic-music-money-machine