The very first article I wrote for this site was about a corporation by the name of SFX Entertainment. Run by billionaire Robert Sillerman, its business model seems to be based on the wanton acquisition of everything related to EDM. In the 90s, another incarnation of SFX (run by the same guy) did the exact same thing with rock music. We can all see how much good that did for rock music.
Instead of complaining from the sidelines, I have decided to take another strategy. What if everyone reading this started to trade on the stock of SFX? I don’t mean buy and hold on to it for dear life. I mean to actually trade on it.
If you look at the movement of SFX stock, you can see the roller coaster ride it’s been on. That is not necessarily a bad thing. That roller coaster is called “volatility.” If you time it correctly, you can make quite a bit of money—and why shouldn't you? EDM is your music, your soundtrack, your life…and it is pretty much a wholly owned subsidiary of someone who doesn’t even listen to it.
So what happened to the “Rock & Roll” SFX? It was sold to Clear Channel for $4 Billion. That company became Live Nation, which is now the biggest competitor of the current SFX. Since I last wrote about this, the SFX stock has been on a seriously downward trend (mostly due to Sillerman’s ridiculous, pantomime rapper antics).
Still, people holding a “short position” cleaned up! Before it’s said, I do not advocate “giving Sillerman money.” I plan to make some of my own by playing on his successes and failures. If you are watching the EDM scene, you will know about them anyway.
WHERE TO GO FROM HERE:
This piece is not meant to do anything more than open your eyes to the fact that music is still big business. Musicians and fans alike are not able to see above the $99 cent/download threshold that Steve Jobs created for them with the inception of iTunes. If we are to survive in today’s economy, we have to be imaginative. We have to take risks. Right now $600 will get you close to 100 shares of Mr. Sillerman’s company. It puts him in the position where he is working for you. If he ever dresses up like Run DMC again...well, it will become even cheaper for you to get in the game.
In the way of leading a horse to water, here are some search terms you might want to look up:
"Trade stocks from home" / "How to read a balance sheet" / "Volatility" / "Short selling" / "Trading options"
Time to leave your comfort zone. If you can use Ableton, you can read a ticker symbol. Even if you don’t have money, watch the stock and learn how it moves. If you do make some cash, I WANT MY CUT! We’ll pop champagne together.
Written by MC Zulu.
Cover photo credit: NASDAQ
Disclaimer: The opinions, beliefs and viewpoints expressed by the author do not necessarily reflect the opinions, beliefs and viewpoints of EDM.com.