Beatport Losses – $5,5m for 2015
The Beatport losses totalled up to $5,5m at the end of last year. This figure was revealed in the bankruptcy statements for holding company SFX Entertainment.
The Beatport losses in 2015 come after a profit of $7.1m that they experienced in 2014.
The report shows the Beatport losses saw the company go from making $46.5m in 2014 to $39.1m in 2015.
Their overheads grew to $18.7m from $11.2m putting them at a total of $5.5m lost in 2015. Towards the end of last year the online music retail service was also forced to freeze royalty payments due to a lack of cash flow.
The news of Betaport’s big losses last year comes out right on the heels of Soundcloud’s news of a reported $44m loss for 2014. There is widespread doubt as to the future of Soundcloud amidst their financial woes, despite having signed an impressive deal with Universal Music.
The CEO at the head of all this upheaval is Robert F.X. Sillerman, and he is currently using the company bankruptcy for SFX Entertainment (filed on 1 February 2016) to start over without the $300m debt and then gaining $150m in financing.
The 2015 figures shared by SFX Entertainment revealed that they were losing large amounts of money with live events and were unable to bag enough sponsorship to keep the events profitable.
Beatport is continuing to play it cool, assuring all of the public, artists, and labels that everything is still ‘business as usual’. Time will tell as to whether or not this ‘restructuring’ is going to adversely affect Beatport.
“All Beatport users, customers, and partners should rest assured knowing that this action will have no impact on our ability to continue offering the most complete electronic music experience available.” According to the statement released by Beatport
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