Music-streaming start up Rdio has raised $17.5million in new funding with a round led by Mangrove Partners. The company, founded by Janus Friis and Niklas Zennstrom of Skype notoriety, also announced the addition of Warner Bros. Records chief Rob Cavallo to its board of directors. The addition of Cavallo is said to be an effort to “strengthen” relationships with the music industry. Rdio currently offers a two-tiered paid subscription service, which fits in with Warner Music Group ruler Edgar Bronfman Jr.’s stance on services offering free levels of access, as in they “will not be licensed” by WMG… Yesterday’s News Corp. earnings call has led to more reports of an impending sale of MySpace. Company executives are not really saying anything new from what’s already been reported over the previous weeks, this time it is just more official… Anschutz Entertainment Group has announced a new joint venture called Outbox Enterprises, which sees the promoter entering the ticketing arena. As a result of the regulatory judgement in the Live Nation merger with Ticketmaster, AEG is allowed to compete for ticket sales. The new venture will be headed by former Ticketmaster executive Fred Rosen who will act as CEO. The company plans on beginning to sell tickets through Outbox in the next six to twelve months… Elsewhere, Inc.com checks in the eMusic after last years customer kerfuffle over the addition of more major label catalogues to the once indie-only music service, as well increased prices and the departure of indie stalwart labels Domino, Merge and Beggars Group… And The Fader Fort, a staple of the SXSW music festival for the last decade, has announced a new sponsor this year in Fiat. They’ll also be streaming live performances in conjunction with, err, MySpace Music?
All posts tagged Rob Cavallo
The signing of singer-songwriter Marissa Renee Jack by new chairman Rob Cavallo along with longtime A&R executive Craig Aaronson over the holidays, marks one of the first artist deals under the newly established Warner Bros. Records regime. At a young age Marissa has already performed and written with numerous artists, including co-writing the single “Kid Nation” for new Cash Money Records artist Cymia Telleria. It appears publishers are in the mix as well. Stay tuned… And kudos to artist development/management duo Loren Israel and Brooke Heller (Neon Trees), along with legal eagle Eric German of Mitchell Silberberg & Knupp.
News from Warner Bros. Records made industry waves yesterday as it was announced that Tom Whalley is exiting his post as Chairman and current Chief Creative Officer Rob Cavallo will be taking the reins, while Todd Moscowitz and Liva Tortella, will assume the roles of Co-President/CEO and Co-President/COO, respectively. A long time coming in the eyes of many industry insiders, it leaves to question the future of the current A&R staff at the bunny. Will the label’s headquarters be now based in New York, considering that’s the current home base for Moscowitz and Tortella? And it falls in line with Lyor Cohen’s M.O. to keep company headquarters under one roof in the same city. What then becomes of the fabled WB offices (aka the ski lodge) in Burbank, which has been considered a buzz-kill environment compared to the heyday of the Mo and Lenny years. We can probably expect more staff consolidation within the Warner labels so that the music group can share back-office functions, which seems to make sense to do so.
Meanwhile more questions surround the recent decree from new EMI Group head Roger Faxon that included exits by Ronn Werre, Nick Gatfield and Billy Mann. Lots of industry chatter with the exit of Werre due to the handsome salary compensation he was receiving. Insiders share that when Terra Firma’s Guy Hands took over the music group, he handed (no pun) Werre a substantial 7-figure per year salary in order for him to stay at EMI when Sony Music was courting him vigorously with a deal that was reportedly completed. Will Faxon tap any of his key publishing executives to oversee A&R functions on the record side? And with Gatfield’s departure, what will current Virgin Records Prexy Rob Stevenson’s role be at the music group? We heard that Gatfield has been meeting with other labels, including Sony Music, but insiders share that Sony is no longer a play. Does that leave the obvious move for Gatfield to rejoin former boss Lucian Grainge at Universal? Moreover, the significant changes announced at two of the four major music groups within the last few weeks now leaves eyes turned toward Universal Music Group and Sony, where similar executive changeovers are expected to happen. Stay tuned…