A few days ago, it was no exaggeration to say that Forbes, the world’s leading economic magazine, said that the EDM market was “a power that can not be ignored” when it unveiled this year’s “World’s Most Selling DJ” ranking. The world’s largest market starting in 2011 The growth of EDM, which caused a tremendous upheaval in the United States, is taking its peak in Las Vegas today.
As the US mainstream market accepts EDM, the changes that the EDM market is experiencing today are very American. That is, ‘bigger, more glamorous, more commercial’. The strength of the US market capital has led to the destruction of Ibiza’s hometown, the holy city of commercial EDM culture, and its central axis to Las Vegas. But why the hell is Las Vegas? What is happening now in Las Vegas?
First thing that comes to mind when it comes to Las Vegas is the casino industry. From the year 1931, when the first large casino Northern Club opened, the gambling industry has been the symbol and main driving force of Las Vegas. But the casino industry alone was not enough. By the time of year, Las Vegas led growth with a new theme. In addition to gambling, it is also intended to attract tourists by providing another pleasure. The first was a live performance and a musical. It then transformed itself into a business convention center, and in the early 1990s it was renovated into a theme park for families. Finally, it became a shopping paradise with the competitive opening of huge shopping malls. However, the number of tourists visiting Las Vegas from 2007 to 2010 decreased by 5%, and casino industry profits dropped by 18% during the same period, and the local economy in Las Vegas was in a situation where it needed to find new growth engines. In the meantime, EDM will be the ‘big hit’ in the US market. The new growth formula of Las Vegas was ‘the combination of Ibiza and casino’.
Already in 2008, owner Steve Wynn of Las Vegas Wynn Resort has already established a number of well-known clubs such as Club XS and Cosmopolitan Marquee, all of which have been funded with a whopping 120 billion won. However, as EDM became popular and large-scale EDM festivals followed successively, Las Vegas began full-fledged investment. In April this year, Hakkasan opened the door. Located in the basement of MGM Grand, a major Las Vegas hotel and casino attraction, the club’s investor is Mansour, owner of Manchester City, a well-known football club. Last May, another Super Club Light opens with Guy Laliberte, Ron Burkle leading the Circus of the Sun. The investment was close to 30 billion won. These extravagant clubs, which have now become Las Vegas representatives, have armed themselves with an imaginative facility that breaks the existing notion of clubs.
The big hands of Las Vegas did not stop here, but dragged world top class DJs into resident artists as if they were sweeping. It is no exaggeration to say that the most famous and best DJs that can represent the current EDM scene are all resident in Las Vegas.
Here is not the end. Superstar DJs at the mega club in Las Vegas are keeping the world’s best with overwhelming gaps. Let’s take an example of Hakkasan. Tiesto, who has a 20-month residence contract, earns close to 300 million won per synagogue. The price for deadmau5, which also moved from XS to Hakkasan, is 470 million won. Calvin Harris, Hakksan’s other resident DJ, recorded the world’s most expensive DJ with an astronomical income of more than 50 billion won last year, is just over 300 million won. Hakkasan’s aggressive investment has inevitably led other clubs to participate in the DJ bid war. He offered Afrojack, who was a resident of XS, nearly twice as much as his previous payout, but an anecdote that the XS has caught him by offering a new contract against it is famous. Even though they are so quiet, there is no reason for them to become ridiculously expensive DJs.
Nonetheless, in terms of the club, Suzutayama is said to be the right business. Most of the more than 3,000 guests entering the $ 50 entrance fee spend an average of over $ 100 on alcohol. If you add up to VIP customers who spend about 10 million won or more on the table, the club invested over 300 million won to put Clavin Harris on the stage. Neil Moffitt, who now runs Hakkasan, who created another myth with <Global Gathering>, one of the most famous festivals in the world, after creating the EDM performance brand <Godskitchen> in 1999 and having achieved remarkable success, said, “Calvin Harris Is a good choice for our business model. I’ve never lost a club since I opened it, “he says.
Investment outcomes are also statistically significant. Hakksan and Light are generating high net income between 20% and 30% despite estimates of astronomical investment (Forbes estimates). In addition, as these large clubs attract people, XS and Marquee, the traditional nightlife attractions, have also attracted more audiences. Las Vegas guests rarely stay in a single club. Best of all, it is expected that nearly 40 million tourists will come to Las Vegas this year, thanks to the recording of the Electric Daisy Carnival, one of the world’s largest EDM festivals, and the growth of huge clubs. It is the highest record since the birth of Las Vegas.
It was no coincidence that the urgency of Las Vegas that needed such a new growth engine and the meeting of EDM, which had just begun to emerge as an axis of American mainstream culture. EDM, which has attracted young people in the United States with terrifying momentum since 2011, and the quick pace of the big hands of Las Vegas, which accepted it as a way of salvation, created a new paradise called ‘Las Vegas in the center of the world EDM’. The explosion of the US EDM scene and the explosive growth of Ibiza in the United States, the gradual decline of Ibiza, which reigned as a sacred place for parties and clubbing while the lights of the house and techno were seen in Europe, and the rise of Las Vegas, (Whether positively or negatively) has entered a whole new era.