It spawned a large number of sub-labels from the early 1980s to the early 1990s and it set the standards for an entire genre of music ranging from Italo disco to Italo house.
Due to financial problems, Discomagic ceased its operations in 1997.
Lombardoni sold the company to Bernhard Mikulski's ZYX Music.
The sublabels owned by Mauro Farina were brought into what became SAIFAM Music Group.
Roberto Zanetti's Dance World Attack became an independent label, but was sold to Sony Music in 1999.