Beatport slims down: axes features

Rumours this week of important news to come from EDM community hub Beatport suggested an early announcement of its new owner, scheduled for May 23.

There was an interesting update on this. But Beatport has made a more significant announcement, to come into effect tomorrow.

It has axed most of its recent offerings – including its music and video streaming services – as part of its strategy to refocus on its download store, which helped establish the brand globally in the first place with sales of US$6 million (A$8.1 million) in 2012. 

After Beatport was bought by SFX Entertainment in 2013 for $50 million ($67.9 million), it expanded to streaming, a mobile app and an EDM music news channel to generate more revenue and expand its appeal with the global dance music community. All of these are now scrapped, no doubt motivated by the fact it lost $5.5 million ($7.4 million) last year. 

Beatport announced, “[In] our effort to be so many different things, we lost focus on bringing the best possible service and capabilities to our most loyal customers: the DJ community. 

“As such, we have determined to invest in what is most important to our business and our customers, rather than adding yet another choice to a sea of streaming services.

“This means we will be shutting down the Streaming service and mobile app, Beatport News, the Video livestreaming platform, and the Events section effective May 13, 2016.

For over 12 years, the Beatport Store has served DJs and the electronic music community. As a new generation of artists, performers, and sounds develop and grow, inspired by the leaders of today and the past, the Beatport Store will continue to be there to support the music and inspire the community.

“While we plan to continue considering offers for Beatport, the previously detailed auction process will be suspended for now.”

SFX filed for voluntary Chapter 11 bankruptcy in the US in February, to get rid of $300 million ($407.5 million) worth of debt. This did not include its international assets as Australian promoter Totem OneLove. It expects to be out of Chapter 11 by July/August.

Beatport’s slim-down will see “various positions” (up to 49 in the US and Europe, according to Billboard) pink-slipped. Among them are Greg Consiglio, who took over as President/CEO last year. Chris Nicolls, FTI Senior Managing Director, takes over as interim CEO.