Rhapsody Names Its First CEO: Mike Davis
Streaming service Rhapsody and its international version Napster have been operating without a full-time leader at the top, until now. Seattle-based parent company Rhapsody International has announced it has hired Mike Davis as the company’s new -- and first -- CEO.
Davis comes to Rhapsody after successful stretch in private equity, most recently as senior operating consultant for The Gores Group. He has also held CEO roles at Alliance Entertainment and Gavin De Becker & Associates, and before that was executive vp of Universal Music Enterprises (Ume), leading the content and distribution divisions.
"I am thrilled to join Rhapsody at such a dynamic time for both the company and the music industry," said Davis. "For 15 years, Rhapsody has led innovation in streaming music and remains a best-in-class streaming music service. Thanks to the biggest and best partners in the world and a roadmap of innovative new features, we are primed for continued global growth during one of the most pivotal years in music."
The installment of a chief executive follows a challenging period for Rhapsody, in terms of financial growth. As previously reported, the subscription service lost $35.5 million on revenue of $202 million in 2015, due largely to the content and distribution costs of operating a music service. Revenue grew, but expenses outpaced it. Rhapsody currently has about 3.5 million paid subscribers, putting it far behind Spotify's 30 million and Apple Music's 11 million, but still ahead of Tidal's 3 million.