Whether you're on a yacht in Ibiza, a club in Vegas, or a festival in Tulum, one thing is certain: you're listening to dance music
In my previous blogs, I discussed the frenzy behind music catalog sales and the current state of the music business. Today, I dive into the frenzy surrounding dance music and festivals. Historically, I've been a fan of pop, rap, and R&B, as you can tell from references in my past blogs. However, in recent years, house and EDM music have made their way into mainstream markets—and my daily playlists as well. As I detail below, I'm not alone in this newfound interest; millions around the world share this sentiment.
Originating as an underground sub-culture in Chicago and Germany, EDM has evolved into the fastest-growing music genre globally. For those still new to the genre, EDM (Electronic Dance Music) is an umbrella term that includes many electronic subgenres, such as Drum & Bass, House, and Techno. Centered around a relentless party environment and youth influence, EDM has captured the hearts of millions worldwide over the past few decades, creating a sense of unity among fans from diverse backgrounds. EDM is now the soundtrack to countless festivals, parties, and nightclubs worldwide, cementing its global foothold in music.
The EDM Business
The EDM business has its nuances compared to the broader music industry. Most songs in EDM revolve around the beat and drop rather than lyrics, so dedicated vocalists and songwriters are less common. Most EDM artists are DJs, producers, or both. Historically, DJs did not produce their own music, but growing competition has drastically lowered the ceiling for success for sole DJs. Today, a successful music catalog is a prerequisite for any DJ aiming to transcend hometown club performances and become a touring festival DJ and producer. In dance music, producers often focus on releasing singles and EPs rather than albums. However, over the past decade, artists like Calvin Harris and John Summit have started to change that trend. Unlike other genres where streaming can be the lion's share of an artist's revenue, EDM is heavily focused on live touring, including festivals, clubs, and tour performances.
Most DJ-producers use their own catalogs and mashups of other artists’ music to promote their brand and sell tickets on social media. However, DJing online doesn't come without consequences. Many DJs have had their accounts banned and content removed from platforms like Twitch and TikTok for using copyrighted music without consent. Both TikTok and Twitch have since reached deals with major record companies to authorize the use of their music, with the cost deducted from any earnings by the content creator (the DJ).
The Global Appeal & Growth
After achieving 17% revenue growth in 2023, the 2024 IMS EDM Business Report values the dance music industry at a remarkable $11.8 billion. Most of this growth came from touring, festivals, and clubs, though recording and publishing revenues were also significant contributors.
With many songs focusing on catchy hooks, beats, and drops rather than lyrics, EDM transcends many language and cultural barriers. In 2023, the top 10 global markets for electronic music based on monthly Spotify listeners included Germany, the US, India, and South Africa. This is a testament to the genre's globalization and international appeal. Some genres, like Afro-House, have even transcended their original geographical boundaries, becoming one of Beatport’s ten most popular global electronic subgenres and gaining recognition in party cities worldwide. Other EDM artists have collaborated outside the genre with pop artists, both in songs and on festival stages. Notable examples include Calvin Harris x Ellie Goulding and Marshmello x Selena Gomez. Dance music's broad appeal allows dance producers to command top billing at mixed-genre festivals.
In Toronto, Canada, the influence of EDM has not gone unnoticed. Many record labels and entertainment companies have invested significantly in creating globally competitive nightlife and festival experiences. Over the past few years, Toronto hosted its first Rolling Loud, several dance music venues have opened, and even Drake dropped a house album. Each year, Canada hosts some of North America's largest dance music festivals, including Veld and Shambhala. Canada has always been a hub for creativity and with the 2026 World Cup in North America on the horizon, future opportunities in dance music are promising.
Frenzy for Festivals
One key factor in EDM's growth is the rise of festivals. Music that once played only in underground venues now takes over the largest venues worldwide in Miami, Vegas, and Ibiza. Music lovers seek the next dance event in clubs, bars, rooftops, and festivals in every city. Festivals like Tomorrowland and Ultra Music Festival have become iconic, attracting hundreds of thousands of fans globally. These festivals offer an immersive experience, combining world-class DJ performances, stunning visuals, and an unparalleled sense of community for fans. The rise of festivals benefits music companies, artists, and festival businesses and boosts local tourism and commerce. Since its inception, the Miami mayor suggests that Ultra Music Festival has generated over $1 billion for Miami’s economy.
Artificial Intelligence & EDM Music
With lyrics not being a key component of many EDM songs, the craft behind dance music faces significant threats from AI models that create studio-production-level quality beats within seconds. Although an AI-generated soundtrack may sound unique, many AI programs use existing music to train their models. Lawsuits have been filed against some software companies, arguing that AI models risk flooding the market with AI-generated music, overshadowing genuine works by human artists. AI disruptions impact the entire music industry. Many AI-generated songs or "deepfakes" have gone viral inciting debate on whether the soundtrack originates from the actual artist. However, artificial intelligence also has the power to streamline the music production process for artists. Many AI-powered algorithms and plug-ins allow producers to mix and master tracks easily and complete tasks such as equalization and compression seamlessly.
Despite the everchanging environment of the music business, electronic dance music is here to stay and transform nightlife around the world.
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