Thursday, May 10, 2012
Live Nation buys Creamfields, EDM to Explode in 2013
Live Nation Entertainment has bought Cream Holdings/Creamfields, and the EDM world is abuzz. This historic purchase could mean huge things for Electronic music here in the states. We could actually see these promoters competing here in the US for the top spot in the electronic dance music circuit. Insomniac, Ultra, Sensation, and now Creamfields, the United States could easily become bigger than Europe and the UK due to the fact we have two massive european festivals coming over. This is great news and all, but what does it actually mean for us, the people, who've been supporting these companies for years? As EDM becomes more popular and the demand for these festivals are huge, how much of our hard earned money are we going to actually cough up to attend these two, three, or maybe four day festivals? 3-day passes for Electric Daisy Carnival Las Vegas, Ultra Music Festival, and Coachella are already at the starting price of $250, and go up as high as $350. It's scary, yet exciting, to see how big Electronic music is going to get in 2013, we're barely in May 2012 and events/festivals are popping out every single weekend. It's hard to keep up and save money when so many nightclubs are hosting top notch talent for $50 - $60, not including gas and that $20 for parking we've come so easily to hate. We'll soon find out how big EDM will become, its only a matter of time... Say goodbye to your College fund, and College for that matter.
The New York Times -
In a deal that demonstrates how important electronic dance music has become to the concert industry, Live Nation Entertainment has bought Cream Holdings, the British promoter behind Creamfields and one of the biggest names in European dance festivals.
In an announcement Wednesday morning, Live Nation — the world’s biggest live music company, whose divisions include Ticketmaster — also said that James Barton, Cream’s founder, would become the president of its Live Nation Electronic Music division, and that the company planned more dance events.
“With this acquisition, Live Nation further establishes its position in electronic music and expands its concert platform,” Michael Rapino, the company’s chief executive, said in a statement. “We intend to launch new festivals in key markets in North America, Europe and Southeast Asia.”
Terms of the deal were not disclosed. In its most recent filings with British regulators, Cream Holdings reported that for the year that ended in January 2011, it had almost $7.8 million in assets. The company, which started in 1998, puts on festivals in Britain and Spain and also has a record division. According to Live Nation’s announcement, Cream expects to sell 350,000 tickets to its concerts this year.
While consistently popular overseas, electronic dance music — or techno, or electronica, or whatever you want to call it — has long been considered marginal in the United States, with a mixed history of success in the mainstream. In 2001, for example, Creamfields tried to expand to the United States with events in Las Vegas and on Long Island , but both were canceled.
Over the last couple of years, however, the genre has become one of music’s biggest success stories, with major companies like Live Nation and A.E.G. Live putting on more dance events and the network of independent promoters behind many of the biggest events being wooed by Wall Street investors. Depending on how those promoters feel about selling their companies, there could be more such deals this year.
Next weekend, one of the biggest music festivals in the United States, Electric Daisy Carnival, which has sold hundreds of thousands of tickets in Los Angeles, Las Vegas and elsewhere, is coming to the MetLife Stadium in New Jersey for three shows.
- Article by Ben Sisario Original Article