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.

Dancers from the Olympics opening ceremony. Photograph: Getty Images.
Getty
Show Hide image

The joy of only winning once: why England should be proud of 1966

We feel the glory of that triumphant moment, 50 years ago, all the more because of all the other occasions when we have failed to win.

There’s a phrase in football that I really hate. It used to be “Thirty years of hurt”. Each time the England team crashes out of a major tournament it gets regurgitated with extra years added. Rather predictably, when England lost to Iceland in Euro 2016, it became “Fifty years of hurt”. We’ve never won the European Championship and in 17 attempts to win the World Cup we have only won once. I’m going to tell you why that’s a record to cherish.

I was seven in 1966. Our telly was broken so I had to watch the World Cup final with a neighbour. I sat squeezed on my friend Colin’s settee as his dad cheered on England with phrases like “Sock it to them Bobby”, as old fashioned now as a football rattle. When England took the lead for the second time I remember thinking, what will it feel like, when we English are actually Champions of the World. Not long after I knew. It felt good.

Wembley Stadium, 30 July 1966, was our only ever World Cup win. But let’s imagine what it would be like if, as with our rivals, we’d won it many times? Brazil have been World Champions on five occasions, Germany four, and Italy four. Most England fans would be “over the moon” if they could boast a similarly glorious record. They’re wrong. I believe it’s wonderful that we’ve only triumphed once. We all share that one single powerful memory. Sometimes in life less is definitely more.

Something extraordinary has happened. Few of us are even old enough to remember, but somehow, we all know everything that happened that day. Even if you care little about the beautiful game, I’m going to bet that you can recall as many as five iconic moments from 50 years ago. You will have clearly in your mind the BBC commentator Kenneth Wolstenholme’s famous lines, as Geoff Hurst tore down the pitch to score his hat-trick: “Some people are on the pitch. They think it’s all over. It is now”. And it was. 4 - 2 to England against West Germany. Thirty minutes earlier the Germans had equalised in the dying moments of the second half to take the game to extra time.

More drama we all share: Geoff Hurst’s second goal. Or the goal that wasn’t, as technology has since, I think, conclusively proved. The shot that crashed off the cross bar and did or didn’t cross the line. Of course, even if you weren’t alive at the time, you will know that the linesman, one Tofiq Bakhramov, from Azerbaijan (often incorrectly referred to as “Russian”) could speak not a word of English, signalled it as a goal.

Then there’s the England Captain, the oh-so-young and handsome Bobby Moore. The very embodiment of the era. You can picture him now wiping his muddy hands on his white shorts before he shakes hands with a youthful Queen Elizabeth. Later you see him lifted aloft by his team mates holding the small golden Jules Rimet trophy.

How incredible, how simply marvellous that as a nation we share such golden memories. How sad for the Brazilians and Germans. Their more numerous triumphs are dissipated through the generations. In those countries each generation will remember each victory but not with the intensity with which we English still celebrate 1966. It’s as if sex was best the first time. The first cut is the deepest.

On Colin’s dad’s TV the pictures were black and white and so were the flags. Recently I looked at the full colour Pathe newsreel of the game. It’s the red, white and blue of the Union Jack that dominates. The red cross of Saint George didn’t really come into prominence until the Nineties. The left don’t like flags much, unless they’re “deepest red”. Certainly not the Union Flag. It smacks of imperialism perhaps. In 1966 we didn’t seem to know if we were English or British. Maybe there was, and still is, something admirable and casual about not knowing who we are or what is our proper flag. 

Twelve years later I’m in Cuba at the “World Festival of Youth” – the only occasion I’ve represented my country. It was my chance to march into a stadium under my nation’s flag. Sadly, it never happened as my fellow delegates argued for hours over what, if any, flag we British should walk behind. The delegation leaders – you will have heard of them now, but they were young and unknown then – Peter Mandelson, Trevor Phillips and Charles Clarke, had to find a way out of this impasse. In the end, each delegation walked into the stadium behind their flag, except the British. Poor Mandelson stood alone for hours holding Union Jack, sweltering in the tropical sun. No other country seemed to have a problem with their flag. I guess theirs speak of revolution; ours of colonialism.

On Saturday 30 July BBC Radio 2 will commemorate the 50th anniversary of the 1966 World Cup Final, live from Wembley Arena. Such a celebration is only possible because on 16 occasions we failed to win that trophy. Let’s banish this idea of “Fifty years of hurt” once and for all and embrace the joy of only winning once.

Phil Jones edits the Jeremy Vine Show on BBC Radio 2. On Saturday 30 July the station celebrates the 50th anniversary of the 1966 World Cup Final live from Wembley Arena, telling the story of football’s most famous match, minute by minuteTickets are available from: www.wc66.org