Posted inAnalysis, News

(Corrected) SFX financials reveal Beatport download sales decline

Digital dance music service Beatport sold $8.9m of music downloads in the first quarter of 2015, according to this week’s quarterly financial results released by its parent company SFX Entertainment.

“Our Platform segment generated revenue of $12.0 million for the three months ended March 31, 2015. This included $8.9 million, or 73.9%, from the sale of digital music files, $1.5 million, or 12.9%, from sponsorship and media sales and $1.6 million, or 13.2%, from other sources, including certain marketing services,” explained the company. “Our Platform segment had a gross profit margin of 36.6% for the period.”

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SFX’s revenues nearly triple, but its losses are rising too

EDM-focused entertainment firm SFX Entertainment’s revenues nearly tripled year-on-year in the last quarter, but its losses grew too.

The public company published its latest financial results yesterday, revealing that its revenues rose 199% to $82m in the second quarter of 2014, but its losses jumped 78% to $43.7m over the same period.
The results provide the latest insight into the business of dance music in the US: there may have been an EDM boom in recent years, but many companies are still searching for profits in it.

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Layoffs at Beatport amid ‘refocus’ of dance service

Dance-focused digital music store Beatport has shut down its San Francisco office and laid off a number of engineering staff, according to a report by TechCrunch that was confirmed last night by the company.

The report claimed that six engineers in San Francisco and as many as 20 in Beatport’s Denver headquarters were laid off last week, as part of what looks like a restructuring following parent company SFX Entertainment’s recent IPO.

As is often the case in situations like this, reports from staff are at odds with the company’s official line. “t was crazy. It was a f***ing bloodbath for sure. Some of the people laid off were working there for almost ten years,” one source told TechCrunch.