Beatport is the biggest outlet in the world for electronic music fans to buy their wares, as well as a go-to source for news on the EDM industry. Therefore it seemed somewhat strange that the company would buy Listn, a "social listening app," and immediately announce that it was shutting its new possession down later this year, according to Digital Music News.
Listn was a growing platform, allowing its 400,000 users to access their friends' music libraries while browsing streaming services such as Spotify and Soundcloud. Last year it raised $500,000 in seed funding, a promising number, which must have attracted Beatport's eye. One might initially think that the new owner would utilize Listn's abilities through its own site, much like how Apple aims to use newly acquired Beats Radio to its advantage. Beatport seems content to start from scratch however, announcing that the original app will shut down at the end of October. All of the company's staff will be acquired by its new ownership where it will presumably begin building a similar platform.
To get an idea for the full story, you can trace the decision back up to Beatport's owner, the hype-heavy SFX Entertainment, which continues to add to its portfolio of electron music holdings. The site has bought holds in music festivals and brands galore...and hasn't seen much profit yet. The company posted a net loss of $43.7 million during the last quarter of business although investors will likely point out that it's the cost of expansion. We'll see.
Listn CEO Mike Schmidt seems cool with it. But he's also probably rich now thanks to the undisclosed amount Beatport paid for his baby (listed as seven figures by Dancing Astronaut).
"Beatport is the largest electronic music community in the world," he said. "We are a part of their incredible goal to round out the end-to-end experience, from live events to digital music."
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