Beatport Closes San Francisco Office, Cuts Jobs Elsewhere
by Mikey Lavery
At the beginning of the year--February to be exact--SFX, the world's largest live music and events company, purchased Beatport for a reported $50 Million, and started what would be a year of acquisitions of some of the world's leading electronic dance music promotions companies. With names like ID&T, Made Events, iMotion, Life In Color all being bought up by SFX, their plan of monopolizing the industry was well underway. With the purchase of Beatport by a power house such as SFX, it was widely thought that there was not limit as to what the world's most used music download site could achieve.
Now, as the year draws to close, the reality couldn't be more different. It was reported this week that Beatport has suffered a substantial amount of job losses in offices across the world. The worst of which was in San Francisco, where the branch of Beatport was closed resulting in many engineers loosing their jobs. There have also been reports of job losses in other cities across the U.S. Initial reports coming from internal sources reported that the company (Beatport) was not making a profit and SFX stepped in to make the necessary changes.
Beatport was widely known to focus it's attentions on social networking and the stocking of remix stems, thought to be the best way to channel it's music and downloads to the public. However, judging by the financial loss, it was deemed not to be working. Now, SFX has taken more control and focus on the site being more of a music store. The news of the job losses was not met well, with a source from Beatport describing it as "a bloodbath" and adding, "SFX is not concerned with anything but the store. Some of the people laid off were working there for almost 10 years."
SFX confirmed reports of losses by releasing a statement about the office closures: "To allow us to adapt and improve our service, it was necessary to make some organizational changes. We have closed our San Francisco office, reorganized our engineering team, and cut some positions in Denver."
Explaining why the jobs were cut, the president of SFX Entertainment, Tim Crowhurst, had this to say, "The hard conclusion we had to make on Beatport is that we were spread a bit too thin. We had to make some hard choices, frankly, to restructure the team and get everyone focused on one vision." Speaking about the future of the online music site, Crowhurst went on to say, "We're making it more of a product-focused company as opposed to an engineering company. We're very focused on creating end-products that the community and all of our constituencies are going to love."
We'll bring more on this story as it unfolds...
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