Beatport is the latest music service to suffer huge losses.
Online music store and streaming service Beatport made a loss of $5.5m in 2015, according to figures revealed as part of bankruptcy proceedings for parent company SFX Entertainment.
As Billboard reports, the store, which was bought by SFX in 2013 for $50m, made a profit of $7.1m in 2014, but saw both a drop in revenue and an increase in expenses in 2015.
According to the figures, Beatport’s revenue dropped from $46.5 million in 2014 to $39.1 million in 2015, while overheads grew from $11.2 million to $18.7 million, resulting in a total loss for 2015 of $5.5m.
It caps off a terrible year for Beatport, which was forced to freeze royalties to labels and artists as part of a process that SFX founder Robert F.X. Sillerman hoped would solve the financial woes of the parent company.
SFX filed for bankruptcy on February 1 after several years of financial problems that saw the company accumulate $300m of debt.
According to SFX’s figures for 2015, the company was haemorrhaging money from live events and failed to make up the shortfall with sponsorships, which it hoped to sell to brands looking to capitalise on the young EDM demographic.
Beatport has yet to comment on what the figures mean for the company, but last month issued a statement saying that it was “business as usual” for the store despite the bankruptcy proceedings affecting SFX.
“All Beatport users, customers, and partners should rest assured knowing that this action will have no impact on our ability to continue offering the most complete electronic music experience available,” the statement said.
The figures come shortly after the news that SoundCloud made a $44m loss in 2014, casting doubt on “the company’s ability to continue as a going concern.”