The economics of house music

The beat goes on.

For DJ (and chartered accountant) Ali Miraj, house music is still on the rise. And the numbers back him up.

"Not everyone understands house music", as the words of one club anthem make clear. How times have changed. From its humble origins in a Chicago nightclub in the 1980s the genre – now dubbed electronic dance music (EDM) – has exploded into the mainstream.

And the financials reflect what has happened. According to a report commissioned last year for the International Music Summit, the EDM market is valued at approximately $4bn annually with recorded-music sales revenue representing 5.1 per cent of the global music market.

James Palumbo, an Eton- and Oxford-educated former investment banker who established the Ministry of Sound (MOS) – a nightclub in South London – in 1991, was one of the first to recognise the huge money-making potential of the industry. Having successfully built a global brand, the MOS group is now a multi-million pound business spanning merchandising, events, radio, mobile applications and bars, as well as a number of record labels including the hugely popular HedKandi. Others such as Pacha and Space from Ibiza have also leveraged their brand identity internationally.

The appeal of EDM has also been driven by DJ/producers such as David Guetta and Calvin Harris who travel between venues on private jets commanding up to $100,000 a night. Cracking the US market has been key. According to Nielsen Soundscan – an industry data-provider – 46.6 million digital electronic/dance tracks were sold in the US in the first half of 2012, making it the fastest-growing music genre with a 65.2 per cent increase compared to the previous year.

As well as music sales there is real money to be made in events. Last December Swedish House Mafia saw tickets to their performance at Madison Square Garden in New York sell out in just nine minutes. Beacon Economics, a consultancy, which was commissioned to assess the financial impact of the Electric Daisy Carnival in Las Vegas this year on the regional economy, found that the event generated an estimated $136m for businesses including hotels and restaurants. The Ultra Music Festival – where the industry's great and good hobnob by swanky hotel pools and engage in panel discussions on challenges facing the industry – attracted some 200,000 people.

In the UK, Live Nation Entertainment acquired Cream Holdings Limited in May this year for £13.9m ($21.9m) and intends to launch new festivals in North America, Europe and Southeast Asia. Pete Tong, a UK-based DJ who has long been at the forefront of the scene, has said there is increasing interest in emerging markets demonstrated by the Sunburn festival in Goa, India as well as huge potential in China.

With the numbers showing anything but a slow down, some fret about the fickle nature of the music industry and predict the hype may die down. But for now, at least, the beat goes on.

This story was originally written for economia.

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Indie band The 1975 want to “sue the government” over the Electoral Commission’s latest advert

Frontman Matt Healy perhaps isn’t aware that the Electoral Commission is not, in fact, the government (or believes that this is part of a wider conspiracy).

How do you make registering to vote in the EU Referendum cool? It sounds like something  from The Thick of It, but judging by the Electoral Commission’s latest TV ad for their new voting guide, this was a genuine question posed in their meetings this month. The finished product seems inspired by teen Tumblrs with its killer combination of secluded woodlands, vintage laundrettes and bright pink neon lighting.

But indie-pop band The 1975 saw a different inspiration for the advert: the campaign for their latest album, I Like It When You Sleep For You Are So Beautiful Yet So Unaware Of It (Yes, a title perhaps even more cumbersome than “The EU Referendum - You Can’t Miss It (Phase One)”).

Lead singer Matt Healy posted a picture of the guide with the caption “LOOK OUT KIDZ THE GOVERNMENT ARE STEALING OUR THOUGHTS!!” back on 17 May. The release of the TV spot only furthered Healy’s suspicions:

Healy perhaps isn’t aware that the Electoral Commission is not, in fact, the government (or believes that this is part of a wider conspiracy).

The 1975’s manager, Jamie Oborne, was similarly outraged.

Oborne added that he was particularly “disappointed” that the director for the band’s video for their song “Settle Down”, Nadia Marquard Otzen, also directed the Electoral Commission’s ad. But Otzen also directed the Electoral Commission’s visually similar Scottish Referendum campaign video, released back in September 2014: almost a year before The 1975 released the first promotional image for their album on Instagram on 2 June 2015.

Many were quick to point out that the band “didn’t invent neon lights”. The band know this. Their visual identity draws on an array of artists working with neon: Dan Flavin’s florescent lights, James Turrell’s “Raemar pink white”, Nathan Coley’s esoteric, and oddly-placed, Turner-shortlisted work, Bruce Nauman’s aphoristic signs, Chris Bracey’s neon pink colour palette, to just name a few – never mind the thousands of Tumblrs that undoubtedly inspired Healy’s aesthetics (their neon signs were exhibited at a show called Tumblr IRL). I see no reason why Otzen might not be similarly influenced by this artistic tradition.

Of course, The 1975 may be right: they have helped to popularise this particular vibe, moving it out of aesthetic corners of the internet and onto leaflets dropped through every letterbox in the country. But if mainstream organisations weren’t making vaguely cringeworthy attempts to jump on board a particular moment, how would we know it was cool at all?

Anna Leszkiewicz is a pop culture writer at the New Statesman.