It’s either loved or deeply hated. But it’s a big business none the less and to prove it the people behind one of the biggest dance music online stores Beatport have sold it to SFX Entertainment for 50 million USD.
DJ TechTools reports that there aren’t too many details about it. SFX Entertainment is owned by Robert F.X. Sillerman who also owns the huge Live Nation brand and its companies. SFX Entertainment has been investing a lot building up an EDM entertainment. In this sense it makes sense for them to get hold of one of the biggest DJ-communities in the world.
“Beatport gives us direct contact with the D.J.’s and lets us see what’s popular and what’s not,” Mr. Sillerman said in an interview. “Most important, it gives us a massive platform for everything related to E.D.M.”
Since the company was revived last year, SFX has focused mostly on live events, with the promoters Disco Donnie Presents and Life in Color; recently it also invested in a string of nightclubs in Miami and formed a joint venture with ID&T, the European company behind festivals like Sensation, to put on its events in North America.
Beatport is big business indeed. According to Billboard their revenue last year was about 18 million USD while making a loss of 2 million.
Last month, SFX added five new companies to its portfolio, including Voodoo Experience and ID&T – the largest dance-event promoter in the world – giving the company a significant foothold in the North American festival market – and not just in EDM.
Last year, SFX acquired Dayglow Productions (“The World’s Largest Paint Party”) and Disco Donnie Presents, and had been expected to purchase Insomniac Events, the producer of Electric Daisy Carnival, but the ID&T news and a rival bid from Live Nation seemed to make that less likely. The two companies host similar, potentially competitive events. Speaking with Billboard.biz last month, Sillerman, however, did not count out an Insomniac deal.