The increasingly-troubled move of EDM firm SFX from a public to a private company is having a knock-on effect on its Beatport subsidiary, not to mention the labels providing music to it. Beatport sent a letter to partners this week admitting that it can’t pay them monies due for music sold on its service. “Since inception over 10 years ago Beatport has paid almost $200,000,000 to its label partners.
Beatport’s parent company, SFX, is currently involved in a ‘going private’ process that has trapped certain earned label payments,” explained the letter. “This process will be coming to an end in the next few weeks, at which time all payments will be able to be made. Beatport prides itself on being the broadest and original friend of the makers of electronic music and will clear this one time obstacle very shortly.” This does not bode well – even if the money starts flowing again as promised, the episode can only damage Beatport’s trust level among its label community, many of whom are working on extremely tight margins.
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