INITIAL REPORT Reverdy Johnson,
[email protected] Large Potential Exists for SFXE in EDM Space, Results to Follow Companies: BUD, FB, GOOG, LYV, MSFT, SFXE, TWTR January 22, 2014 Research Question: Will consumer brands find SFX Entertainment’s collection of electronic dance music festivals compelling enough to become significant sponsorship partners? Silo Summaries Summary of Findings 1) Ad Agencies . Thirteen of 15 sources said electronic dance music (EDM) is Five of six sources said EDM festivals scene have room for becoming mainstream, has significant room for growth in the growth and will become an even more attractive United States and worldwide, and is an attractive method for sponsorship opportunity for global consumer brands. EDM consumer brands to reach all-important ever-elusive is quickly becoming mainstream and festivals are the new millennials. music genre, especially for the millennials that brands are so determined to reach. Social and streaming networks . Brand sponsorship opportunities hold vast potential, with have a significant reach for this audience, as pre- and Google Inc.’s (GOOG) Motorola and Anheuser-Busch InBev post-festival productions become destinations for viewers (BUD) recently inking deals. Samsung Electronics Co. Ltd. and and sponsorship dollars. Three sources said revenue for these festivals is increasing year to year. Two others said Microsoft Corp. (MSFT) are sponsorship targets and could global brands are traditionally conservative and deliberate bring significant revenue to the EDM space. in their decision-making process, especially when . Electronic cigarette, gaming, and non-alcoholic beverage considering an untested space which lacks proof of companies are expected newcomers to EDM in 2014, while concept and sophisticated metrics.