Robert F.X. Sillerman told Billboard in an interview that his EDM-centric company SFX Entertainment would be going under some restructuring when the festival season concludes. We admit we have wondered in the past if there was any structure at all over at SFX or whether the company was just consuming any EDM-based products it could get its hands on, from festivals to the Beatport platform.
"Having completed many acquisitions, we are in the process of determining where there is duplication, as well as where we can enter new businesses by reallocating people," Sillerman said. "There are no specifics beyond that at this time."
The question of whether a format currently exists remains unanswered as of that quote but it does suggest SFX is looking at the right issues. Although the company brought in increased earnings this year ($143.5 million according to the company and Dancing Astronaut), the company posted losses of $20 million more during the second quarter of 2014 than it did during 2013. Part of the net loss (despite record high revenues) is the rate of expansion that the company has undergone, including the operation of 17 festivals during 2014. Live events operated by the company contributed around 80 percent of the company and the other 20 percent came from Beatport, one of the most popular centers for downloads in the EDM scene.
Whether the many investors in SFX will see their stocks increase in value during 2015 will more likely depend on how much the new properties bring in (and how much the company opts to slow down its consumption). A good restructuring for efficiency's sake won't hurt however.
