Beatport Freezes Royalty Earnings

Beatport, who has recently reportedly closed a strategic partnership with Spotify, has announced to it's artists and label managers that there will be a delay in their royalty payouts. As with anyone who's waiting on any sort of paycheck, this obviously came as a disappointing shock to many in the industry, especially those in the dance genre of music as Beatport, for some of these artists and labels, brings in nearly 90% of their artist revenue. 

Photo Courtesy of MBW

Photo Courtesy of MBW

The reason? SFW Entertainment, Beatport's parent company, is undergoing a going private process. Until that's completed, payouts cannot be completed, leaving royalty recipients biting their nails and waiting anxiously. 

Although once the payout does occur, however, it won't be for an amount worth calling home about. As stipulated in Beatport's Terms & Conditions the payout for an artist on the site is only 5%. While artists knew what they were getting into, this amount still doesn't sit well for many members of the music industry. It was however, laid out in the terms and conditions prior to uploading any music onto Beatport. 

“[This] royalty is your sole compensation and includes all payments due to you in connection with the Content, including any mechanical royalties, public performance monies, or other music publishing monies to which you may be entitled as a writer or composer.” Source : Beatport via MBW