Guest Post: With Merger in the Rearview, Former EMI CEO Roger Faxon Thinks the Future of Music Is Pandora
Since he stepped down as EMI CEO in September 2012, in the wake of the company's sale to Universal Music Group, Roger Faxon has been non-executive chairman of the advertising firm Mirriad, but has…
Since he stepped down as EMI CEO in September 2012, in the wake of the company’s sale to Universal Music Group, Roger Faxon has been non-executive chairman of the EMI CEO Roger Faxon, CFO Ruth Prior to Step Down: Read Full Text of Letter
In doing so, Pandora has created a new revenue source that is truly incremental. Some may not be happy that the revenue isn’t larger, that the value per play isn’t greater, but we should all be happy that we have it and that it is growing (by more than 40 percent last year to approximately $450 million). And for every point of market share that Pandora takes from terrestrial radio, that’s about another $50 million in incremental royalties.
So, yes, I do think Pandora is part of the solution. Admittedly, it is only one part of a solution to ensuring that the creators of music have the resources they need and deserve. There is much more that Pandora and the entire music industry can and should do. From my new perch on the board of Pandora, I look forward to contributing in every way I can.