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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The biggest divide in politics is not left against right, but liberals against authoritarians

My week, including a Lib Dem membership rise, The Avalanches, and why I'm putting pressure on Theresa May over child refugees.

It is a boost for us that Nick Clegg has agreed to return to the front line and be our Brexit spokesperson. I hadn’t even had a chance at our meeting to make him the offer when he said: “Before we start, I’ve been thinking about this and want to take on the fight over Europe.”

With Labour apparently willing to give the Tories a free pass to take us out of Europe, the Liberal Democrats are the only UK-wide party that will go into the next election campaigning to maintain our membership of the EU. The stage is remarkably clear for us to remind Theresa May precisely what she would be risking if we abandon free trade, free movement, environmental protection, workers’ rights and cross-border security co-operation. More than a month on from the referendum, all we have heard from the Tories is that “Brexit means Brexit” – but they have given us no clue that they understand what that means.

 

Premature obituaries

Not long ago, the received wisdom was that all political parties were dying – but lately the supposed corpses have twitched into life. True, many who have joined Labour’s ranks are so hard left that they don’t see winning elections as a primary (or even a desirable) purpose of a party, and opening up Labour to those with a very different agenda could ultimately destroy it.

Our experience has been happier: 20,000 people joined the Liberal Democrat fightback in the wake of the 2015 general election result, and 17,000 more have joined since the referendum. We now have more members than at any time this century.

 

Breaking up is hard to do

Journalists have been asking repeatedly if I want to see the break-up of the Labour Party, with moderates defecting to the Liberal Democrats. I have been clear that I am not a home-wrecker and it is for Labour to determine its own future, just as I focus on advancing the Liberal Democrat cause. Yet I have also been clear that I am happy for my party to be a home for liberals of whatever hue. I enjoyed campaigning in the referendum with a variety of progressive figures, just as moderates from different parties shared platforms in 1975. It struck me that far more unites us than divides us.

That said, not all “moderate” Labour figures could be described as “liberal”, as John Reid demonstrated as Labour home secretary. The modern political divide is less left v right than authoritarian v liberal. Both left and right are looking increasingly authoritarian and outright nasty, with fewer voices prepared to stand up for liberal values.

 

What I did on my holidays

Time off has been virtually non-existent, but I am reading A Wilderness of Mirrors by Mark Meynell (about loss of trust in politics, the media and just about everything). I’m also obsessively listening to Wildflower by the Avalanches, their second album, 16 years after their first. It’s outstanding – almost 60 minutes of intelligently crafted dialogue, samples and epic production.

During the political maelstrom, I have been thinking back to the idyllic few days I spent over half-term on the Scottish island of Colonsay: swimming in the sea with the kids (very cold but strangely exhilarating ­after a decent jog), running and walking. An added bonus is that Colonsay is the smallest island in the world to have its own brewery. I can now heartily recommend it.

 

Preparing for the next fight

The odds are weirdly long on an early general election, but I refuse to be complacent – and not merely because the bookies were so wrong about Brexit. If we have learned one truth about Theresa May as Prime Minister so far, it is that she is utterly ruthless. After her savage cabinet sackings, this is, in effect, a new government. She has refused to go to the country, even though she lectured Gordon Brown on the need to gain the endorsement of the electorate when he replaced Tony Blair. Perhaps she doesn’t care much about legitimacy, but she cares about power.

You can be sure that she will be keeping half an eye on Labour’s leadership election. With Jeremy Corbyn potentially reconfirmed as leader in September against the wishes of three-quarters of his MPs, Mrs May might conclude that she will never have a better chance to increase her narrow majority. Throw in the possibility that the economy worsens next year as Brexit starts to bite, and I rule nothing out.

So, we are already selecting candidates. It is vital that they dig in early. As we are the only party prepared to make the positive case for Europe, such an election would present us with an amazing opportunity.

 

Sitting Priti

David Cameron pledged to take an unspecified number of unaccompanied children from camps across the Continent. I am putting pressure on Theresa May to turn that vague commitment into a proper plan. Having visited such camps, I have been fighting for Britain to give sanctuary to a minimum of 3,000 unaccompanied children, who are currently open to the worst kinds of exploitation. We have heard nothing but silence from the government, with underfunded councils reporting that they are not receiving the help they need from Whitehall.

Meanwhile, it remains government policy to send refugees to Turkey – whose increasingly authoritarian government has just suspended human rights protection.

As if all of this were not grim enough, we have a new Secretary of State for International Development, Priti Patel, who has said that she thinks aid should be used largely to promote trade. As someone who wants our country to be respected around the world, I find this plain embarrassing. Actually, it’s worse. It’s shaming. As with Europe, so with the world: the ­Conservative government is hauling up the drawbridge just when we need more than ever to engage with people beyond our shores.

Tim Farron is the leader of the Liberal Democrats. To join the party, visit: libdems.org.uk/join

Tim Farron is leader of the Liberal Democrats.

This article first appeared in the 28 July 2016 issue of the New Statesman, Summer Double Issue