Discomagic Records was the largest italo disco/dance record label in Italy at the time and was run by Severo Lombardoni. It spawned a large number of sub-labels from the early 80's to the early 90's and it set the standards for an entire genre of music. Discomagic Records ran into a liquidity crisis in 1997, the rights to its catalogue were sold to Bernhard Mikulski (the owner of ZYX Music). Discomagic was succeeded by Hitland.