Beatport and SFX apologize for ongoing royalties suspensionSillerman Beatport

Beatport and SFX apologize for ongoing royalties suspension

During the most tense phase in the rise of streaming, Beatport – owned by SFX Entertainment – ruffled more than just a few feathers when they proclaimed that no royalty payments would be made for the past quarter, a period stretching from April to June 2015. This halt was credited to SFX’s ongoing move to re-privatize, a controversial decision likely due to the company’s lackluster results after its IPO in 2013.

After a very public call out from Morgan Geist of Environ Records regarding the payment standstill, Beatport has attempted to reconcile the situation with a public statement that claims payments will be made next week.

Regarding yet another point of controversy that suggested payments were firstly made to major labels rather than independent labels, Beatport offered an explanation. “Some payments were made before the hold went into effect, and those included payments to major labels and some labels participating in the new Beatport streaming service. This was not preferential treatment in any way, but we understand how the optics may illustrate just the opposite.”

Additionally, CEO of SFX Robert Sillerman shared his own regrets about the incident – perhaps in attempt to quell the wave of negative news that has surrounded his company.

“I regret that unrelated elements made Beatport delay some payments for the first and only time in its more than 10 year history. The way we handled this was inexcusable and should never have happened. The thousands of creators who have made Beatport what it is today deserved better, and I am deeply embarrassed, both personally and professionally, by what has happened.”

Read the full statement from Beatport below.

It was confirmed today that Beatport’s label supplier payments, which have been delayed temporarily via a hold at SFX Entertainment, will be processed next week. We deeply regret any hardships this delay has placed on members of the creative community – especially independent labels and artists, who are the lifeblood of electronic music culture and who have been long standing partners and suppliers to Beatport since 2004. We are truly sorry this has happened, and that we allowed payment distribution to get caught up in unrelated matters.

While the majority of payments were delayed, some payments were made before the hold went into effect, and those included payments to major labels and some labels participating in the new Beatport streaming service. This was not preferential treatment in any way, but we understand how the optics may illustrate just the opposite. Beatport is nothing without creative partners. We remain indelibly committed to serving the electronic music community and providing tools and resources for DJs, producers, and labels around the world to reach their fans and develop their careers. Anything that gets in the way of that mission must be dealt with swiftly so we can all get back to focusing on our core goals. To that end we appreciate the assistance of AFEM during the process this week and we look forward to continuing the growth of Beatport in support of the electronic music community.

Via: THUMP

Read More:

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SFX’s sale of $15 million in stock suggests underlying financial troubles

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