Spotify and TMWRK cut their losses with SFX, opt out of deals
It isn’t often that you hear good news regarding SFX’s workings within the electronic music industry, and today’s stories are no exception. TMWRK, the management company that controls the careers of Diplo, What So Not, Flosstradamus, and countless other acts, has officially cut ties with SFX according to a recently obtained SEC contractual document. As a result of the split, TMWRK will fork over $3.6 million to SFX to fulfill the previously arranged settlement to terminate the partnership. Fans can rest easy knowing that this will not affect their favorite artists in any way.
Spotify has also severed their partnership with SFX, which mainly revolved around exclusive content between Beatport and Spotify. Within the same document, it is revealed that SFX will repay the $10 million that Spotify put down upfront in the deal. Again, from a fan’s perspective, the end user will likely see no repercussions. As a matter of fact, the “exclusive content” wasn’t the hottest media anyway.
As the days go by, the future looks increasingly bleak for the once-championed electronic music mega-corporation. That being said, frankly, no one is surprised.