Electric Dance Music Not a Fad: SFX CEO Sillerman

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Oct. 9 (Bloomberg) -- SFX Entertainment CEO Bob Sillerman discusses the company's business model and music festivals with Cristina Alesci on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

Sfx, the producer behind electronic music festivals such as tomorrow world, went public today, and it was a disappointing day for the shares, which closed down about 8.5%. cristina alesci spoke with sfx chief executive rob sillerman.

I never understand anybody else's company, even livenation, which used to be mine and was the first sfx.

Investors are much less interested in what you used to do than in what you are going to do.

But didn't this come down to explaining to investors that your business model is not about attracting top talent that eats into the margins of what we could consider the typical concept business?

Our presentation was really simple -- the first time, we proved it worked.

Then we knew how to consolidate industries, and in particular, this one that is populated by creative people who need and deserve independence.

? secondly, without, in any way, imposing discipline, you can make them more profitable.

But talk to me about the margins of this business that you are going into and that you've built compared to the typical concert business.

I don't know what the margins of the typical concert business are anymore.

I do know that at the festival, even though magnificent talent earns a lot of money, people are there not just to see one individual.

Could you have had the same kind of turnout without a david get a or tso -- david guetta or tiesto?

No.

the millennial's are important to your business.

I've heard you talk about the 18-30-year-olds.

You know they are emphatic about this business in europe.

What we don't know is how emphatic they are for the long- term in america.

What makes you so convinced that they are going to stick with this for the next 10 years?

Electronic music has already evolved into 23 different john resort -- 23 different genres.

Just as someone was a fan of the allman brothers wouldn't go see u2, why would a band of trance go to see dubstep exclusively?

Therefore, that is the foundation of 18-30-year-old digital natives' music, made by

This text has been automatically generated. It may not be 100% accurate.

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