Musak Holdings nearing the end of its reign
Musak Holdings recently filed for Chapter 11 bankruptcy protection.
“Long-standing debt” ($320 million in assets and a debt of $465 million).
The article states ” a slew of store closures is also at fault, executives
said recently, as the continuing recession causes struggling businesses to
cancel their Muzak accounts.”
Well, I can see a lot of stores are suffering and closing in the current
economic downturn but there are others who are looking at ways to reduce
their costs and are looking at more cost effective ways to provide music to
their stores. Royalty free background music is of course, perfect for this
since it does not have attached to it the additional cost of performing
rights royalties due for every play of a track. Quite simply, the price you
pay up front for the license enables you to use the music with no additional
royalties due. Not only are businesses finding this a way to reduce costs,
but also a way to get a music publisher on board who can gather the right
music to fit the business need.
The Internet, of course, enables businesses as well as consumers to look for
new suppliers who can provide better products and services and this will
continue with the background music market this year with background music
becoming available from royalty free libraries who are primed for providing
businesses better deals with even better and targeted music.
Unfortunately, like most large corporates, they only see the change when it
hits the numbers at board level. Im sure the guys talking to the customers
on a day by day basis have heard the same story for a while, but for that to
penetrate the well furnished board room hang outs is another matter.
Today’s business music market looks very different to it was when Musak
Holdings started out. Whilst most of the innovation that has taken place in
the music industry has been high profile there has, and will continue to be
much innovation in the following few years.
Just watch.
