Beatport, owned by troubled SFX Entertainment, is quitting the streaming game – and says it’s in no rush to sell.
SFX acquired Beatport for $50m in 2013.
From there, in an attempt to increase revenues and progress its technology, Beatport built a streaming music service, a mobile app, a video livestreaming platform and a dance music news channel.
And today, just as anticipation was building for news of a sale, Beatport made a very different announcement.
“[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,” it said in a blog post.
“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.”
Yep: as the music streaming game gets tougher and more ruthless than ever before, Beatport’s waving it – and a number of other cash-burning services – goodbye.
Instead, it’s focusing on the download store which helped make Beatport’s name – and seems confident this will be a recipe for success and stability.
It added: “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.”
And that’s not the only big news from Beatport today.
“[While] we plan to continue considering offers for Beatport, the previously detailed auction process will be suspended for now,” the company commented.
It added: “We’d like to give our heartfelt thanks to all of the loyal listeners, readers, and viewers who have come to enjoy these services over the past year, as well as all the labels, artists, and promoters who have participated in them.”
For now, then, Beatport is remaining an SFX subsidiary, and slimming down to what it knows best.
SFX filed for voluntary Chapter 11 bankruptcy in the US in February, looking to wipe $300m of debt from its balance sheet as it was removed from the New York Stock Exchange.
Its international operating subsidiaries were not included in the filing, with boss Robert Sillerman agreeing to step down as CEO but remain as Chairman.
A group of ‘ad hoc bondholders’ agreed to provide SFX up to $115m in DIP (debtor-in-possession) financing, allowing the firm to operate as normally as possible as it transitioned into a privately-owned organisation.
SFX said expects to emerge from Chapter 11 at some point across the summer.
Last summer, things were rather less optimistic: Robert Sillerman was forced to personally apologise for SFX’s “deeply embarrassing” and “inexcusable” decision to freeze payments to labels in Q2 last year – thought to be a product of difficult cash-flow at the publicly-listed company.Music Business Worldwide