656: A Taste for Disruption | Russell Burke, CFO, Life360
When Russell Burke tells us that his days at Sony Music Entertainment included “huge peaks” such as the release of the hit sound track for the motion picture Titanic as well as huge challenges such as the rise of digital pirates, the two developments quickly converge.
Suddenly, in our mind’s eye, we see Burke’s career vessel of choice surrounded by pirates and the finance executive shouting a string of orders to a bewildered seafaring crew.
Once again, the instant imaging that our conversations often render appears to be strangely prescient of the finance leader’s future career chapter.
“Before that piracy, I hadn’t really understood the concept of disruption,” explains Burke, who occupied VP of finance roles at Sony Music in both New York and Europe in the late 1990s and early 2000s.
At first, Burke was tasked with helping Sony to lessen piracy’s bite by leading a series of cost optimization initiatives, including setting up joint venture distribution agreements and putting in place shared services facilities.
“After dealing with that for a time, I decided that I wanted to join the disruption,” comments Burke, who in 2001 was named founding CFO of PressPlay, a music streaming service formed as a joint venture of Sony Music and Universal Music.
“Even though this was a joint venture formed by two massive companies, it was in many respects a true start-up—we sat down and created a business model and executed on it,” explains Burke, who adds that the company would grow to serve 800,000 digital music subscribers before it was sold in 2003 to Roxio, an early streaming service that helped to legitimize the streaming seas as it rolled up streaming assets, including those of pioneering pirate Napster.
“PressPlay was really set up by the record companies to battle the Napsters of the world, and, at the same time, these companies were suing the pirates,” remarks Burke, who recalls that PressPlay opted to sell to Roxio as the firm sought to rebrand Napster as a legitimate streaming service—signaling an end to the music industry’s choppy seas. –Jack Sweeney
