Back in the US some artists were finding it difficult to gain recognition. Another import into Europe of not only a style but also the creator himself was Joey Beltram. From Brooklyn his "Energy Flash" had proved rather too much for American House enthusiasts and he need a move to find success. The American industry threw its weight behind DJs like Junior Vasquez, Armand van Helden or even Masters at Work who appeared to churn out endless remixes of mainstream pop music. Some argued that many of the formulaic remixes of Madonna, Kylie Minogue, U2, Britney Spears, the Spice Girls, Spiller, Mariah Carey, Puff Daddy, Elvis Presley, Vengaboys and other bands and pop divas did not deserve to be considered house records.

During this time many individuals and particularly corporations realized that house music could be extremely lucrative and much of the 1990s saw the rise of sponsorship deals and other industry practices common in other genres.

To develop successful hit singles, some argued that the record industry developed "handbag house": throwaway pop songs with a retro disco beat. Underground house DJs were reluctant to play this style, so a new generation of DJs were created from record company staff, and new clubs like Miss Moneypenny's, Liverpool's Cream (as opposed to the original underground night, C.R.E.A.M.) and the Ministry of Sound were opened to provide a venue for more commercial sounds.

By 1996 Pete Tong had a major role in the playlist of BBC Radio 1, and every record he released seemed to be guaranteed airplay. Major record companies began to open "superclubs" promoting their own acts, forcing many independent clubs and labels out of business. These superclubs entered into sponsorship deals initially with fast food, soft drinks, and clothing companies and later with banks and insurance brokers. Flyers in clubs in Ibiza often sported many corporate logos.