Dear Artists, Your Royalties Have Now Been Frozen. Sincerely, Beatport.

A letter sent from Beatport to all artists this week (and of course, forwarded to DMN).  The company hasn’t responded to an inquiry.

beatportletter

 

6 Responses

  1. Alivemou5

    This appears to be outright unethical. The company is apperantly disrupting the business relationship it has with the labels instead of securing a line of credit, which would be the ethical thing to do. Further, and speculating, this kind of dump really hurts the small guy, leaving sh/im hung out to try, while the larger labels make backdoor deals to be exempt from this abatement. The Smithers have no union. T

    Reply
  2. Me2

    What does ‘trapped’ payments mean? That SFX needs the cash to buy back shares?

    Reply
  3. Anonymous

    We don’t know what’s going on inside Beatport yet. Let’s give them the benefit of the doubt and assume that it was literally impossible for Beatport to avoid this.

    Even then, Beatport is still showing a deep disrespect for its labels and artists, as well as corporate incompetence.

    There’s no way of looking at this that doesn’t lead to the conclusion that (a) they don’t give a damn about artists or labels and/or (b) the company is incompetent.

    Reply
  4. Someone in the Industry

    Such bullshit. They are just now telling people this? “Oh look! STEMS!!!!! btw we are going to be late paying this quarter. kthxbye!” Asshats.

    The entire music industry works around quarterly payments (a backwater habit from the days of physical distribution that no one seems interested in seriously changing because it benefits everyone but the artists). They have already tarnished their reputation in the biz (ask around if you don’t believe me) and now this?

    Seriously, SFX done a damn thing right since buying Beatport? “I have an idea! Let’s take our current platform that has become this the defacto standard of a niche market, move it to another URL (who’s going to notice right?) and replace it with new buzzwordy (ie streaming) service, meanwhile let go most of our programmers so that the old platform can sit and rot! How can we lose?!”.

    Another classic case of some bean counters who don’t totally understand the subculture that helped build their brand (also see Reddit). Arrogant fools and their MBAs…

    Reply
    • Someone in the Industry

      FYI, for many indie EDM labels Beatport still make up to 90% of all download sales. Peoples livelihoods are at risk here. Not to mention how this “trapping” of funds might affect smaller distributors as well and whatever financial shape they might be in. And all we get is this email? Pricks.

      I hope someone from Beatport reads this. You fucked up. Yeah, you. You owe a lot of a people an apology. And if you are management, I will relocate to Denver and take half of what you are paying these other bozos and help you turn it around. Otherwise you are replaced in a few years. Believe it. Blood is in the water and you can be replaced. The wonderful thing about the market is that if there is a void then someone will step in to fill it. Don’t say I didn’t warn ya!

      Reply
  5. TheReanimator

    This is totally bizarre. Why do they need to hold onto this cash? It’s not their money to do what they please with.

    Reply

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