Muzak Holdings
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| Muzak Holdings LLC | |
|---|---|
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| Type | Private, partly owned by ABRY Partners |
| Founded | 1934 |
| Headquarters | Fort Mill, South Carolina, United States |
| Key people | Steve Villa, CEO |
| Industry | Music |
| Products | Distribution of music |
| Employees | 1,256 |
| Website | www.muzak.com |
Muzak Holdings LLC is a company based in metro Fort Mill, South Carolina, United States, just outside of Charlotte, North Carolina, founded in 1934, that is best known for distribution of music to retail stores and other companies.
Muzak is a registered trademark of Muzak LLC.[1] The word "Muzak" has, in popular usage, broken free from its corporate parent and become a catchall generic term (often pejoratively applied) for easy listening, Middle of the road, or elevator music — or, indeed, for any type of banal, derivative, or repetitive music, usually as instrumentals without lyrics.
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[edit] History
The original technical basis for Muzak was developed by inventor Major General George O. Squier who, in the early 1920s, was granted several US patents related to transmission of information signals, among them a system for the transmission and distribution of signals over electrical lines.[2]
Squier recognized the potential for this technology to be used to deliver music to listeners without the use of radio technology, which at the time was in a nascent state and required fussy and expensive equipment.
The rights to the Squier’s patents were acquired by the North American Company utility conglomerate, which created a company named Wired Radio Inc. with the intent to use the technique to deliver music subscriptions to private customers of the utility’s power service.
Squier remained involved in the project, and was reportedly intrigued by the made-up word Kodak being used as a trademark and so took the "mus" sound from music and added the "ak" from Kodak to create his word Muzak.
By the time a workable Muzak system was fully developed, however, commercial radio had become well established and so the company re-focused its efforts on using the technology to deliver music to hotels and restaurants. The first actual delivery of Muzak to commercial customers took place in New York City in 1936. At this time the technology involved remained rather crude as the music originated from record players manually operated at a central office location; the economy of scale dictated that the more businesses subscribed to the service, the lower the overall cost became. The company aggressively pursued expanding the use of the music service to workplaces, citing research that indicated that background music improved productivity among workers.
In 1937, The Muzak division was purchased from the North American Company by Warner Brothers, which expanded it into other cities. Shortly thereafter it was bought by entrepreneur, publisher and marketer William Benton. World War II saw a further increase in the popularity of Muzak, as factories pushed for ever-greater production supporting the war effort.
The company began conducting its own psychological research, and began customizing the pace and style of the music provided throughout the workday in an effort to maintain productivity (a technique it called ‘’Stimulus Progression’’). It also began recommending that the music be provided at low, almost subliminal, volume levels, and discovered that alternating blocks of music with periods of silence increased the effectiveness of the product.
Muzak also began producing its own music (rather than paying to use others’ records). The style of music used was deliberately bland, so as not to intrude on foreground tasks, and adhered to precise limitations in tempo and dynamics. This style of music blended into the background as intended in most situations, but was sometimes noticeable (particularly in quiet spaces such as elevators). Thus the word “Muzak” began to be used as a pejorative for this type of “elevator music” .
A growing awareness among the public that Muzak was deliberately targeted to manipulate behavior resulted in a backlash, including accusations of being a brainwashing technique and court challenges in the 1950s.[citation needed] However, the popularity of Muzak remained high. President Dwight D. Eisenhower was the first to pump Muzak into the West Wing. NASA also used Muzak in many of its space missions to soothe astronauts and occupy any periods of inactivity.[citation needed]
Over the next two decades the basic programming approach would remain unchanged while the technology used moved forward: tape recordings replaced records; the transmission system used moved from power lines to telephone lines and eventually subcarriers on commercial FM stations, and finally via satellite. During this time Muzak became a franchise operation, with local offices purchasing rights to the music, delivery technology, and brand name for their geographic areas. The company again changed hands several times, winding up a division of the Field Corporation in the mid-1980s.
Through the 1980s and 1990s, Muzak gradually moved away from the “elevator music” approach to multiple channel offerings of more sophisticated sounds dubbed ‘’audio architecture’’. Also during this period, it acquired a “foreground music” service and began offering music channels providing commercially-available recordings intended to match the targeted environment.
Even with the changes in format, rocker Ted Nugent used Muzak as an icon of everything uncool about music. In 1989, he publicly made a $10 million bid to purchase the company with the intent of shutting it down. His bid was refused, but served as a name-branding publicity stunt for both parties.[3]
[edit] Today
By the late 1990s the Muzak corporation had rebranded thoroughly, and today little of the music Muzak distributes consists, as it once did, of re-recorded instrumental versions of popular songs, although the service still continues as the "Environmental" channel. [4] The company now focuses largely on foreground music, in addition to offering advertising, news, and stock ticker services.
For many years, Muzak held a virtual monopoly in the field of background music for businesses. However, the advent of alternative music delivery technologies provides business owners with more options. Both U.S. satellite radio companies have repackaged their services for business use, as XM For Business and SIRIUS Business. These services, by virtue of higher look angles and site diversity resulting from concurrent broadcasting from multiple satellites, are less susceptible to rain fade than Muzak's dish-based technology. Satellite radio's lack of contracts (Muzak typically requires a three-to-five year contract [5]) and lower price points have positioned it to challenge Muzak's dominance in the business music arena [6]. Like Muzak, both satellite radio providers' business subscriptions include the payment of required royalties to performing rights organizations ASCAP, BMI and SESAC.
According to EchoStar, Muzak's distribution provider, Muzak's business music service is broadcast on rented bandwidth from Echostar VII, in geostationary orbit at 119 degrees west longitude.
In recent years, the company has experienced serious problems, losing over $9 million in the second quarter of 2006 alone [7]. The company's current trend has it losing more subscribers than it adds and is in its 11th consecutive year without turning a profit[8]. Muzak's CEO, Steve Villa, has gone on record as stating that the company has $438 million in debt coming due in 2008 that it cannot pay.
On April 12, 2007, Muzak Holdings, LLC announced to its employees that it will be merging with DMX Music[9]. This merger was allowed to proceed by the Department of Justice one year later[10].
[edit] List of channels
Channels available on Muzak via Satellite, On-Premise or through Echostar/DishNetwork platform as of November 2006:
Body And Soul
- Aura (New Age)
- Breathe (World Eclectic)
- The Light (Contemporary Christian)
Classics
- Cashmere (Adult Contemporary)
- Funkytown (Funk/Soul/Disco) **Available only in On-Premise line-up**
- Expressions (Light Pop Standards)
- Jukebox Gold (Rock 'n Roll Classics)
- Love Songs (Romantic Melodies)
- Mo' Soul (Classic Soul)
- Reflections (Jazz/Pop/Soul)
- Songbook (Singer/Songwriter)
- Swing Kings (Big Band/Swing)
- Unforgettable (Adult Favorites)
Country
- Country Music One (Country Mix)
- Nashville USA (Current Country Hits)
- Rawhide (Country Classics)
- Screen Door (Alternative Country)
Decades
- '50's & 60's Hits
- '70's Hits
- '80's Hits
- '90's Hits
Electronica
- Frequency (Club/Dance)
- Groove Zone (Current Dance) **Available only in On-Premise line-up**
- Metro (Indie Electronica)
- NuJazz (Acid Jazz)
- NuLounge (Lounge)
- Strobe (Electro Pop)
Holiday [Only available during specific holiday]
- Christmas (Non-Secular Holiday)
- Cinco De Mayo
- Halloween
- Holiday (Secular Holiday)
- Independence Day
- Mardi Gras
- Oktoberfest
- St. Patrick's Day
- Summer Fun
- Valentine's Day
Instrumentals
- Easy Instrumentals (Classic Instrumental)
- Ensemble (Classical Ambiance)
- Environmental (Easy Listening Instrumental) **The "classic" Muzak service, available only to commercial customers**
- Intermezzo (Light Classical)
- Moodscapes (New Age Instrumental)
- Piano & Guitar (Acoustic Instrumental)
- Plaza (Contemporary Instrumental)
- Uptown (Instrumental Jazz)
Jazz
- City Lights (Smooth Jazz)
- Impressions (Contemporary Jazz)
- Jazz Traditions (Classic Jazz)
Latin
- Caliente Pop (Upbeat Latino/Anglo Pop) **Available only in Satellite line-up**
- Estilos (Smooth Latin Music)
- Fiesta Mexicana (Mexican Music)
- La Musica (Latin Pop)
- La Frontera (Tejano/Border) **Available only in Echostar line-up**
- Mojito (Salsa/Merengue)
- Viva Mariachi (Mariachi)
Pop
- 7890 (Classic Pop Hits)
- Backpages (Adult Alternative)
- FM1 (Classic Pop)
- Hitline (Current Pop)
- Hot FM (Pop Hits)
- Peppermint (Youth-Friendly Pop)
- Poppers (Teen Pop) **Available only in On-Premise line-up**
- Venus (Female Pop) **Available only in On-Premise line-up**
Rock
- Half Pipe (Skate Punk/Hip-Hop) **Available only in On-Premise line-up**
- Ink'd (Power Rock/Metal)
- Feedback (Alternative Rock)
- Perimeter (New Indie Rock)
- Rock Show (Classic Rock)
- Stylus (Underground Rock/Pop)
- Varsity (Rock/Pop Hits)
Roots
- Acoustic Crossroads (Contemporary Folk)
- Lucille (Blues)
- Roadhouse (Americana/Classic Rock)
- Route 66 (American Roots) **Available only in On-Premise line-up**
Specialty
- Gumbo (New Orleans Music)
- KidTunes (Children's Music)
- Shag Beach (Carolina Beach Party)
- The Circuit (High Energy Fitness)
- Tropical Breezes (Caribbean Music)
Urban
- Concrete Beats (Hip-Hop/Rap)
- The Blvd. (Adult R&B)
World
- Bellissimo (Contemporary Italian)
- Destinations (Global Pop)
- Hawaiian (Hawaiian Music) **Available only in On-Premise & Echostar line-ups**
- Irish (Irish Traditional/Pop) **Available only in On-Premise line-up**
- Kingston (Reggae)
- Little Italy (Italian/American Standards)
- Quebecois (French Canadian) **Available only in Satellite line-up**
- World Travels (World Music) **Available only in On-Premise line-up**
NOTE: Not all channels are available on all platforms
[edit] See also
[edit] Similar companies
- PlayNetwork
- Applied Media Technologies Corporation, providers of SIRIUS Satellite Radio's business services
- DMX
- In-Store Broadcasting Network
- Music Choice
- Trusonic
- Symphonex
- XM Satellite Radio
- Atmospheres (Coming in 2008)
[edit] Notes
- ^ Our Company. Muzak Limited Liability Company (wfrecruiter.com). Retrieved on 2007-11-08.
- ^ US Patent 1,641,608 (English). Google Patents. Retrieved on 2007.
- ^ Ted Nugent (I) - Biography
- ^ The Soundtrack of Your Life: Muzak in the Realm of Retail Theatre," The New Yorker, April 10, 2006.
- ^ John Downey, "Same Song, Last Verse? Muzak Future in Question," Charlotte Business Journal, October 28, 2005.
- ^ Adrian Burns, "Satellite Radio, Muzak Battle for Businesses," Augusta Chronicle, Saturday, December 11, 2004.
- ^ "Muzak Posts 2Q Loss of $9.4M," Charlotte Business Journal, August 14, 2006.
- ^ John Downey, "Turnaround Specialist Failed to Hit Goals at Muzak," Charlotte Business Journal, August 18, 2006.
- ^ John Downey, "Muzak Seeks Merger with Rival DMX," Charlotte Business Journal, April 13, 2007.
- ^ http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=109&STORY=/www/story/04-07-2008/0004788054&EDATE=, Retrieved on 2008/04/30.
[edit] External links
- Official Muzak website
- Muzak's page describing its "Instrumental" channels, including its "Environmental" service, which started the concept of Elevator Music
- Muzak Inc Company History
- Comprehensive UK anti-muzak site
- Pipedown Internation - The campaign against piped music
- The Soundtrack of Your Life, New Yorker company profile
- "The Sound Around", The Wire, episode five, about ambient music


