BEATPORT WILL NOT BE AUCTIONED, SFX ENTERTAINMENT REVEALS
May’s platform changes have been “well-received and successful”...
SFX Entertainment has announced that Beatport will not be auctioned, after “suspending” the process of the digital music platform’s sale in May.
SFX Entertainment originally revealed that it was auctioning Beatport to alleviate debts in January, after filing for chapter 11 bankruptcy due to making a loss of $5.5m (£3.82m) in 2015.
When SFX Entertainment halted the auction process in May, they also revealed that they would close a number of the sites’ services, including Beatport News, its mobile app, streaming service and the Events section of the site.
An official statement from SFX Entertainment issued today (21st July) read, “Our renewed focus on the Beatport Store, following our announcement of platform changes in May 2016 has been well-received and successful. The changes we implemented have laid a strong foundation for Beatport that have dramatically improved its profitability.
“As a result of these improving trends, SFX has determined that retaining ownership of Beatport is in the best interest of the company and has withdrawn its motion to sell Beatport through the chapter 11 process.
“We look forward to emerging from chapter 11 in the next few months, as strong and vibrant business, positioned to pursue both organic and strategic growth options. The dedicated Beatport management team is committed to continuing to serve our core DJ customer base and enhancing the quality of our customer experience.”
It has been a tough few months for Beatport, as the company’s co-founder penned an open letter on how to save the digital music platform in May, and record labels working with the platform had their royalty payments frozen in October last year, all before The Black Madonna attacked Beatport in an insightful piece penned for Crack magazine.
Rob McCallum is DJ Mag’s digital news writer. Follow him on Twitter here.
