On October 17, according to the exclusive information from one of our sources, Jungle Events, a Chinese EDM festival promoter, raised more than ten million RMB from a group of investors led by N5 capital earlier this year. Datou Capital, which led the Jungle Event’s last financing round in April last year, also participated this time. Jungle Events raised more than ten million RMB each round.
According to Zhou Boyi, the founder of Jungle Events, the company will further expand its business to artists management and offline experience space management with the newly raised money.
In addition to the recent update of its brand logo, Jungle Events moved its Electric Jungle Music Festival from Shenzhen to Foshan in Guangdong province. Many have speculated that the change is a reluctant response to the policy tightening around electric music market this year. Zhou told us that moving the festival to a smaller city has been their plan all along, but the market condition this year did accelerate their action. “There are many established music festivals in Europe and America that are based in rural areas or smaller cities near metropolises. From the very beginning, what we wanted was to put the festival in Shenzhen for two or three years and in Guangzhou for another two or three to build up a solid fan base in these two largest city in the area, and then to find a suitable place to stay permanently in Guangdong province with an existing fan base in Shenzhen and Guangzhou.”
And the cooperation with Chuanlord Tourism and Leisure EXPO Park of Foshan will be the first time for Jungle Events to incorporate the venue for an extended performance experience. Chuanlord Park is a 5A tourist attraction in Guangdong province, which includes amusement parks, food, hotels and a zoo. For Chuanlord Park, this collaboration with Jungle Events is also an effective approach to appealing to the young.
As for the performance, Electric Jungle Music Festival has added a Techno stage this year, with the stage takeover by Berlin Music Commission, an organization representing city musicians and venues like nightclubs. All the performers on the stage are resident DJs from well-known nightclubs in Berlin, Jungle officials said.
Furthermore, Jungle has also invited a well-known international team from the United States who has undertook the production and design of Chainsmokers’ world tour, and the designed sets of artists such as Martin Garrix and Zedd, to handle the design, concept implementation and scenography. According to officials, the total cost of this music festival is around 40 million yuan, with artists accounting for more than a half of the total spending, and scenography design and stage set cost accounts for most of budget increase comparing to last year.
When asked if Jungle would give up the first-tier cities altogether or still consider adding stops in other cities, Zhou revealed that Jungle still has no plan to add stops at present. The internet mindset, which means blind cash burning and market share grabbing, is the last thing the event promotion industry and even the entire entertainment industry needs.” In his view, China is not ripe yet for a touring EDM festival, with the central issue being the current absence of electric music culture in China. “The Chinese market is lacking in electric music products. The only thing available right now is performances, and they are not being promoted enough. At present, most electric music performances are not paid enough media attention or given enough publicity.”
During the latest two years, the electric music performance market has developed rapidly. However, with many members of the Top 100 DJ’s performing in two, three, or even four tiers cities, the audience wiliness to pay for the artists is declining. But according to our sources, the performance fees that these artists charge have not fallen. The ticket prices of electronic performances rise, but the box offices of many of them is riding a downward trend. This is a vicious cycle.
Started as a vertical media reporting on the electronic music industry in 2013, Jungle Events, said Zhou Boyi in the interview, had 40,000 followers in 2016. And now, the number has grown to more than 200,000. The continuous output of content helped Jungle gain sticky fans. According to Zhou, the biggest advantage of Jungle is its audience, “Jungle has a unique audience, because it is cultivated by us after all.”
After these two rounds of financing, Jungle will be trying out music-themed popular culture carnivals, as well as adding Indie Rock and Hip Hop music into the music festivals.
In addition, according to Zhou, Jungle has already set up its own artist management agency and has signed several artists. Jungle also started promoting concerts for domestic and foreign artists while considering entering performance venue management and fan club operations.
It is obviously that Jungle is making a transition to a more diversified business model at its own pace, from media to performance events to indie labels. On October 12, NetEase has just officially launched its electric music brand “Fever”, which is an integrated electric music service platform whose business layout will range from talent cultivation, event promotion, performance venue management, to gaming music and electric music tourism. With the entering of large tech platform and the vertical integration of the live event promoters, the ecosystem of the electric music market in China will further develop.
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