Actually, the reason why labels are trying to snatch up electronic artists
is because they won't have to budget so much money on them. Most of these
artists record in their own studios and are generally self-reliant (i.e.
they don't rely on many band members or session musicians) which is perfect
for the labels, since they don't have to shell out a 6-figure advance to
record their debut album.
And touring for most electronica artists is a godsend for the labels. No
need for tourbuses, roadies, caterers, techies, soundcheck, etc, because he
can just DJ (whether the artist is experienced as a DJ or not). All they
need to do is pay for the airfare for an artist and his records. It makes
more economic sense for them. The labels are dropping alternative rock
bands partly because their touring budgets were too much, especially when
it had so many of those bands in its roster. And one of the reasons why a
lot of acid jazz bands were ignored by the big labels (or even those who
are signed, but don't really go on tour) is that the bands had too many
people in them, which equated to spending more money just to have them tour.
Case in point the Brand New Heavies; their live band is a 10-piece. The
only tour they managed to do in the US was the "Smokin' Grooves" tour,
which was funded mainly by a corporate sponsorship.
Jamiroquai did manage to do a major tour, but they are a rare example.
Elson