South by Southwest: how the geeks took over the world's coolest festival

Emergence of techies and venture capitalists prompts questions of whether the event has turned away from musical roots

It began in 1987 as a small-scale festival with just 700 attending and it was about one thing: the music. Since then, South by Southwest has grown to become a global focal point for the coolest new bands in its unlikely setting of Austin, Texas, annually drawing thousands of people over 10 days.

While the acronym SXSW continues to be a byword for emerging musical talent, the festival has increasingly been covering film and, even more so, what organisers describe as multimedia or "interactive": different kinds of digital and technological innovation.

And this year it is interactive – and the rising numbers of techies and associated venture capitalists jostling for press attention for their projects – that has been most conspicuous. The festival closes tomorrow, and some have been asking whether it has turned away from its musical roots.

This year has seemed like two tribes – music fan and geek, who, while not quite at war, are engaged in something of a grapple for SXSW's soul. With fewer members of the music media, including the British contingent, one blogger asked this week: "Has SXSW jumped the shark?"

Roland Swenson, the festival's managing director, said that the first move to include a small multimedia element came a few years after its birth and was principally about the integration of music and technology.

"We were just sitting around in the early 90s wondering what entertainment will be in the 21st century – it will probably be interactive, with music and images. So we started 'Multimedia'.

"But the thing that really kicked it into high gear was when Twitter launched here in 2006.

"That inspired a lot of entrepreneurs to develop their products and bring them here."

This year, keynote speeches by Twitter founder Evan Williams and Spotify CEO Daniel Ek have been among the most talked about events and organisers now estimate that the technology sector now accounts for up to 40% of those attending SXSW.

Swenson says: "Is the digital world eating the music world? Probably. The music people need to take more time paying attention to the business side."

SXSW's creative director, Brent Grulke, adds, however: "And the interactive people need to spend more time on the rock'n'roll."

Grulke says: "There are definitely two different mindsets. Interactive people, all they do is go to panels with smartphones and laptops and music people are like, 'let's get to a club, get a beer and watch a rock band'."

One reason that it feels like the techies have taken over is that the first half of SXSW is now so dominated by digital media: MacBooks and Google Phones are hauled along to Austin and the techies vie to become virtual "mayor" of the Austin Convention Centre on the hit location-based mobile phone game Foursquare whilst simultaneously watching the likes of Williams and Ek – appearances which are furiously blogged and tweeted.

By midway through the festival the city's hotel lobbies are abuzz with activity as the techies check out to leave and, sizing them up a little suspiciously, the music crowd arrive and check in.

And for those who hold new music dear to their hearts, there are some encouraging signs: those present from the music media include a noticeable number of young people and the festival has also attracted a fresh crop of music bloggers.

Meanwhile, pop-up shows from bands such as Muse and Stone Temple Pilots show that SXSW remains a huge pull for established acts wanting to play to a dedicated and exclusive audience.

And the numbers of new bands who have been playing over the 10 days remains impressive: some 1,700 acts will have performed in Austin by tomorrow – and not all of the gig-goers will be tweeting.

Ben Perreau is a former editor of NME.com