Former EMI Group CEO Roger Faxon is to be elected onto the Board of Directors of controversial digital radio platform Pandora – joining ex-AEG chief executive Tim Leiweke.
Leiweke’s position is effective immediately. Although Faxon must wait to be nominated for election at the annual meeting of Pandora stockholders in June, this appears to be little more than a formality.
“I could not be more excited for Roger and Tim to join the board. Both are forward-thinking and bring invaluable expertise to help Pandora play a leading role in the evolution of the music industry,” said Brian McAndrews, chairman and CEO of Pandora.
“Roger’s deep knowledge of the music business and Tim’s experience in entertainment will provide unique insights as we continue to deliver music our listeners love and new tools to help music makers thrive.”
Faxon’s appointment is likely to raise eyebrows amongst music rights-holders on either side of the label/publishing divide – with both currently fighting Pandora over statutory royalty rates in the US.
Then again, the arrival of Faxon, who remains a popular figure amongst his peers at the top of the music business, could be looked on as an opportunity for Pandora to mend relations with those who attack it for harming music’s perceived value.
From 1994, Faxon held various positions with the EMI Group before it was split and sold in 2012. EMI’s publishing arm was bought by Sony/ATV while its recorded music side was acquired by Universal.
During his tenure at EMI, Faxon served as CFO of the Group and CEO of the company’s Music Publishing division, ultimately rising to become CEO of the Group.
Prior to joining EMI, he served as CEO of Sotheby’s Europe, was Senior Executive Vice President of Columbia and Sony Pictures and COO of Lucasfilm Ltd.
“I could not be more excited for roger and tim to join the board. Both are forward-thinking and bring invaluable expertise.”
Brian McAndrews, Pandora
Leiweke currently serves as CEO of Maple Leaf Sports & Entertainment (MLSE) and prior to this was CEO of Anschutz Entertainment Group (AEG). Under his watch, AEG developed major entertainment arenas such as the StubHub Center, L.A. LIVE and the O2 Arena and Entertainment District in London.
The company also launched its first consumer entertainment platform, AXS Ticketing as well as AXS TV, a cable channel focused on entertainment and lifestyle programming.
Faxon currently owns and leads A&R Investments, a diversified investment and consulting firm focused on the media and communications industries. He also serves on the Boards of ITV PLC, The Songwriters Hall of Fame, The John Hopkins University, and is on the Council of The Brookings Institution.
With these additions, Robert Kavner and David Sze will conclude their tenures on the company’s board on June 4, 2015, the day of the annual meeting of stockholders.
Kavner has served on Pandora’s board since March 2004 while Sze has served since May 2009.
“We’re so fortunate to have had Bob and David on the board. I am immensely grateful for their contributions, expertise and guidance as Pandora has grown into the leader it is today,” said McAndrews. “Their passions for building enduring companies helped us navigate a dynamic landscape and position the company for long-term success.”
On average, Pandora is only paying out around $0.0014 per streamed track to rightsholders. Its total payments to labels and publishers in FY 2014 stood at $446.4m – close to half of its total revenues of $920m.
Pandora is currently involved in two battles over the statutory rates of its royalty payouts: one with the publishers, represented by ASCAP and BMI, and one with SoundExchange.
The latter revolves around a decision from the US’s Copyright Royalty Board later this year, which will determine Pandora’s rate until beyond 2020.
Pandora is attempting to bring down the average stream payout rate to $0.0011, while SoundExchange is demanding a move to $0.0025.
Pandora posted a $30.4m net loss in 2014, despite seeing user growth of 7% to 81.5 million people each month.Music Business Worldwide
