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Beatport going under?
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| DJ RANN |
So I just found out that SFX, the fairly recent owner of Beatport has been canceling some of their major events (One Tribe etc) and are apparently about to file for Chapter 11 bankruptcy.
I have no idea what this means for Beatport but as many of us predicted when the news was announced (and we heard the rumors of near riots in their offices when they let go of 80 odd coding engineers who were promised that their jobs would be secure when the takeover by SFX happened two years ago), they somehow managed to up their business model and lose millions as a group involved in EDM.
one part of me feels sad for beatport and one tribe which were started with passion and talented people who love EDM but the other part of me celebrates the fact big money should off out of our music. |
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| Mr.Mystery |
And here's why:
| quote: | | In 2012 Sillerman decided to resurrect SFX Entertainment, this time with the intention of taking over what he called the global EDM market. In an interview with Billboard announcing his new venture, Sillerman (complete with handkerchief embroidered with the words ‘ off’ poking out of his breast pocket) admitted "I know nothing about EDM… But I sit in the meetings, to the extent that they are [meetings]. I meet the people whose places we're buying. And I haven't a ing clue what they do or what they're talking about. Not a clue. And I love it. I just love it." |
http://www.theransomnote.co.uk/new-...t-the-bastards/ |
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| DJ RANN |
Wow, I knew he was a twat but not that ing evil.
Thanks for posting that link - the links inside are fascinating too.
He's basically nearly singlehandedly responsible for why commercial radio is such turd now.
I hope he loses millions (bllns) over this. Don't get me wrong, you don't have to be an expert in everything you try your hand at - business can be business, regardless of what the genre or product is - but don't buy the most important assets and channels for a whole industry and then joke about not having "a ing clue". |
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| djshire |
| I doubt Beatport itself will go under. It'll change hands, someone will take it back to "what it was", and the site will flourish again. |
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| Storyteller |
| quote: | Originally posted by djshire
I doubt Beatport itself will go under. It'll change hands, someone will take it back to "what it was", and the site will flourish again. |
I'm not so sure. Beatport has never been profitable, but I can imagine someone is willing to invest. An old colleague of mine used to work there, maybe he's able shed more light on this :). |
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| soulstar606 |
greed never wins...in the end.....in the short term though it's very profitable
:tongue3
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| DJ RANN |
Would love to know if you can find out Storyteller.
It really amazes me that these tech companies aren't solvent, then again it shouldn't surprise me; A friend is the CFO for a bif online retailer. they were doing something like $400 year in revenue.
They expanded their offices, decided to make massive changes to their site, and although the revnue is still there, they're in real trouble right now and had to close the new offices.
The common thread with all these tech companies, their not built like brick and mortar enterprises - the money is "given" form the outset based on expectation and they continue to grow based on that expectation, and herein the problem lies. It doesn't matter how many accountants you have or how sharp your CFO is - from day one, they're reaching for figures they don't have yet, but spend as if they do.
Beatport must do a few million a year in revenue so I have no idea how you can't run that platform with a skeleton crew and at least break even. they could probably automate 80% of the business. |
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