The third annual Demofest, held in Banja Luka from July 21 to July 24, is en route to becoming the leading event for aspiring rock bands in the region of former Yugoslavia. This year's Demofest received applications from 378 bands from Bosnia and Herzegovina, Serbia, Croatia, Slovenia, the former Yugoslav Republic of Macedonia, and Montenegro.

The winner was Threesome, a band from Belgrade. After the winners were announced, British band StereoMCs, American band Fun Lovin' Criminals and others performed at a free concert at Banja Luka's Kastel fortress.

The decision to award Threesome with this year’s prize was unanimous, second place was awarded to Kuriri, a band from Pirot in Serbia, and third place was awarded to Croatian band Prežderani from the town of Daruvar. The winners received a recording contract for their debut album in a professional studio. The runners-up were rewarded with 6,000 euros in stage equipment, while the 3rd place band got 3,000 euros worth of equipment. In total 36 bands participated.

The audience chose Qtera, a Montenegrin band, as its favorite. Qtera was among the leaders from the onset, although closely followed by the competitors during voting on the official website, www.jelendemofest.org , until the very end. The Montenegrin band won stage equipment worth 1,500 euros.

"Demofest is a mission. Our goal is to bring rebellion back to the hearts of the young and restore the urban spirit in our cities, to show and prove and that people appreciate grey matter more than muscle, noble ideas more than precious metals hanging around necks, that the energy of youth beats the power of a jeep carburetor, and that it is more attractive to have a heart in your chest than silicone. Success means changing the cultural climate in our country. We want to improve the sound and image of our country. To support young, courageous, and talented young people who can bring back our pride because tomorrow we'll be able to say that we were there and we were the ones who contributed to the creation of a new EKV, a new Azra (famous ex-Yugoslav rock bands),"  festival manager Branka Janković told the press.

On July 21, the first evening, rock fans at the Kastel watched 10 bands competing for the prize, as well as British alternative hip-hop/acid jazz group Stereo MCs.  "Tell me where I am!" yelled its singer Rob Birch. "Google it!" responded somebody from the audience.

In addition to the bands performing in the competitive part of Demofest, the second evening featured Kiril Džajkovski from the former Yugoslav Republic of Macedonia, a Balkan pioneer in the electronic music genre, and his Sedžuk Orchestra together with its latest member, MC and singer Ras Tweed. Džajkovski also presented his latest album, Balkan Electrica, a combination of breakbeat, dub, step, and Balkan melodies.

Day Three saw British band New Young Pony Club in addition to the contestants. New Young Pony Club have produced two albums to date: Fantastic Playroom (2007) and The Optimist (2010). The band features elements of New Wave, Dance, Electronica, and Rock and is best known for its hits Lost a Girl, Chaos, Ice Cream, The Get Go, and The Bomb. They were preceded by Discopath, a group from Split, Croatia, and last year's runners-up. The afterparty featured DJ Fakir, an electronic music pioneer from Novi Sad's Noise Destruction.

The fourth and final day of Demofest, July 24, consisted of performances by the 12 finalists, the awards ceremony, and a concert by Prophaganda, the winner of Demofest 2009. This was topped off by Fun Lovin' Criminals, who were on their European tour, which started back in March. The New Yorkers performed songs from their latest studio album, Classic Fantastic.

UNESCO has included Demofest on its list of projects contributing to cultural rapprochement and establishing ties between the six participating countries: Bosnia and Herzegovina, Montenegro, Serbia, Slovenia, Croatia, and the former Yugoslav Republic of Macedonia. The British Council was also one of the supporters of the project, bringing in international pop producers Gerard Philips, Phil Catchpole, and London's DJ Goldierocks. Another supporter was the regional MTV branch, which produced a music video featuring last year's winners, Zagreb band Prophaganda.