As the bankrupt promoter goes through a process of restructuring, it looks like download service Beatport will be the first subsidiary to go
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"They have no idea how this is going to go down, even at the top," according to an anonymous employee speaking to DMN
By IQ on 04 Feb 2016
Is it really “business as usual” at Beatport?
According to a “confidential source inside the company” quoted by Digital Music News (DMN), the SFX Entertainment-owned digital music store and streaming service is now at “‘high risk’ for bilking on royalties to rights owners, particularly independent artists and labels”.
SFX filed for bankruptcy on Monday.
“You’re looking at a pretty bad mess – we really don’t know how the [bankruptcy] courts are going to handle this,” says the anonymous source
At the time, Greg Consiglio, Beatport’s CEO, moved to reassure labels and artists that “this action [the filing for bankruptcy] will have no impact on our ability to continue offering the most complete electronic music experience available”.
However, DMN’s source claims: “You’re looking at a pretty bad mess – we really don’t know how the [bankruptcy] courts are going to handle this. So all I’d say right now is in this type of situation, there’s really no assurance that anyone’s going to be getting paid.
“Beatport has to lift its hand up and say “everything’s okay” so people don’t freak out, but – let’s be realistic – they have no idea how this is going to go down, even at the top.”