Electronic music website Beatport could be in trouble, as its parent company, SFX Entertainment, has just declared bankruptcy. The site has issued a statement to its users, however, reassuring them that it will continue operating as usual.
Beatport is one of the numerous platforms purchased by Robert Sillerman's SFX Entertainment as it began its mission to consolidate many of the players in the world of electronic dance music, or EDM, under a single umbrella. Sillerman had previously helped build what is now the massive concert promotion and ticketing behemoth known as Live Nation, and in 2012 set out to achieve the same goal in the growing area of EDM.
Sillerman realized that there was a burgeoning youth culture growing around the electronic music style, and was aware that it was already one of the most popular music genres in Europe. With interest growing in DJ's, clubs and festivals, SFX attempted to seize the opportunity to acquire many of the players in the field before the EDM scene blew up even further. The company went on a buying spree, purchasing a slew of independent EDM promoters along with ticketing services, nightclubs and digital music platforms.
One of those platforms was Beatport, the online music store that also allows users to stream tracks prior to purchasing and to listen to curated EDM playlists. SFX believed the synergies between Beatport and its other holdings were a no-brainer, and purchased the company in 2013 for a reported $50 million dollars. Last year, Beatport announced a partnership with Spotify to stream much of its content.
As SFX went on its acquisition spree, Sillerman admitted that he had no understanding of the EDM culture or its music, but arrogantly bragged that he didn't need to. Now it looks as if he can eat those words, because despite the electronic music culture being bigger than ever, SFX has declared bankruptcy and Sillerman has been removed as its CEO. That means Beatport, as one of the company's biggest assets, could be in trouble. The company may have to be sold as part of SFX's debt restructuring, and its acquirer could be one of Beatport's larger multi-genre competitors, who might dissolve the site into their current platform.
Currently Beatport lives on, and has issued a statement on its website to its users reassuring them of such. According to the company, it's still "business as usual. All Beatport users, customers, and partners should rest assured knowing that (the SFX bankruptcy) will have no impact on our ability to continue offering the most complete electronic music experience available."
The company added, "the entire Beatport platform is fully operational without restriction. The store remains open. The streaming service continues uninterrupted. New releases are being added every day. New videos are being scheduled and filmed. Payments to labels and suppliers are ongoing in their usual manner." That is, at least, for now.
