Muzak Holdings

Muzak Holdings LLC
Type Private
Industry Music, Digital Signage, Voice Messaging, Commercial Sound Systems, Drive-Thru Systems, Commercial TV Systems
Founded 1934
Headquarters Fort Mill, South Carolina, United States
Key people Steve K Richards, CEO
Products Distribution of music
Employees 1,250
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, Muzak Holdings is best known for distribution of background music to retail stores and other companies.

Muzak is a registered trademark of Muzak LLC.[1]

Contents

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, which at the time was in a nascent state and required fussy and expensive equipment.

The rights to 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 company'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" syllable from "music" and added the "ak" from "Kodak" to create his word Muzak.

By the time a workable Muzak system was fully developed, 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 crude as the music originated from record players manually operated at a central office location; 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 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 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 began recommending music at different tempos, and discovered alternating blocks of music with periods of silence increased the effectiveness of the product.

While Muzak had initially produced tens of thousands of original artist recordings by the top performers of the 1930s and 1940s, their new strategy required a different sound. 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 synonym for this type of “elevator music” .

A growing awareness among the public that Muzak was targeted to manipulate behavior resulted in a backlash, including accusations of being a brainwashing technique and court challenges in the 1950s. However, the popularity of Muzak remained high. President Dwight D. Eisenhower was the first to pump Muzak into the West Wing. NASA used Muzak in many of its space missions to soothe astronauts and occupy periods of inactivity.

Over the next two decades the basic programming approach remained unchanged while the technology used moved forward: tape recordings replaced records; the transmission system changed from power lines to telephone lines and eventually subcarriers on commercial FM stations, and finally 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 changed hands several times, becoming a division of the Field Corporation in the mid-1980s.

Through the 1980s and 1990s, Muzak moved away from the “elevator music” approach, and instead began to offer multiple specialized channels of popular music. Muzak pioneered "audio architecture", a process of designing custom music playlists for specific clients.

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 stated intent of shutting it down. His bid was refused, but served as a name-branding publicity stunt for both parties.[3]

By the late 1990s the Muzak corporation rebranded itself; as of 2010, Muzak distributes nearly 3 million commercially available original artist songs.[4] Today, Muzak offers almost 100 channels of music via satellite or IP delivery, in addition to completely custom music programs tailored to their clients' needs.

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.

On 12 April 2007, Muzak Holdings, LLC announced to its employees that it might merge with DMX Music.[5] This merger was approved by the Department of Justice one year later.[6] As of April 2009, it appeared the deal was off, but it's possible the two parties would try again.[7]

On 23 January 2009, a spokesperson said Muzak was attempting to restructure its debt and filing for bankruptcy was one of several options. The company had plenty of cash but large amounts of debt coming due in the midst of a difficult economic climate.[8]

Bankruptcy

On 10 February 2009, Muzak Holdings LLC filed for Chapter 11 bankruptcy protection.[9]

Kirkland & Ellis was hired as the company’s bankruptcy law firm. Moelis & Company served as the financial adviser.

On September 10, 2009, Muzak said it had filed a reorganization plan which would cut the company's debt by more than fifty percent. The plan would pay all banks everything they were owed in some form, and would give high-ranking unsecured creditors ownership in the reorganized company. Other creditors would receive warrants to buy stock.[10] The company said an "overwhelming majority" of unsecured creditors supported the plan.[11]

Emergence

On January 12, 2010, the U.S. Bankruptcy Court approved the plan to reduce Muzak's debt by more than half, allowing Muzak to officially emerge from bankruptcy.[12]

After emerging from bankruptcy, Muzak moved to restructure more than just their balance sheets. The company announced a new initiative to realign their corporate structure into three specialized business units: Muzak Media, Touch, a Muzak Co., and Muzak Systems. Respectively, these units will focus on content acquisition, Sensory Branding and new delivery platform technology.

Mood Media has agreed to purchase Muzak Holdings for $345 million, including $305 million in cash.[13]

List of channels

Dish Network Format Name Electronic program guide identifier Notes/Format Descriptions
819 Viva Mariachi
820 Mojito
821 La Música
Monophonic Programmes
920 Environmental ENVOE Easy Listening Instrumental (the "traditional" Muzak format)
921 Reflections REFL Jazz/Pop/Soul
922 FM1 [Foreground Music One] FMONE Classic Pop
923 Hitline AUD01 Current Pop
924 Hot FM AUD02 Pop Hits
925 Expressions AUD03 Light Pop Standards
926 Love Songs AUD04 Romantic Melodies
927 City Lights AUD05 Smooth Jazz
928 Moodscapes AUD06 New Age Instrumental
929 The Party Playlist AUD07 Party Anthems
930 Piano & Guitar AUD08 Acoustic Instrumental
931 7890 AUD09 Classic and Modern Pop Hits
932 Metro METRO Indie Electronica
933 '50s & '60s Hits AUD10
934 '70s Hits AUD11
935 '80s Hits AUD12
936 The Beach AUD13 Laid-back Beach Party
937 Country Music One AUD14 Country Mix
938 The Blvd AUD15 Adult R&B
939 Mo' Soul AUD16 Classic Soul
940 La Musica LMUSC Latin Pop
941 Viva Mariachi VMARI Mariachi
942 Toned LFTRA High Energy Fitness
943 Mojito MJITO Salsa/Merengue
944 Little Italy AUD17 Italian/American Standards
945 Tropical Breezes AUD18 Caribbean Music
946 Roadhouse AUD19 Americana/Classic Rock
947 Muzak AUD20 Special purpose audio channel; generally used for holiday programming
948 Destinations DEST Global Pop
Stereo Programmes (DiSH CD)
949 Muzak 2 MUZK2 Special purpose channel used for Christmas programming and possibly others; mirrored on #982 in December
950 Shine CD 1 Adult Contemporary Pop
951 Country Gold CD 2 Country Classics
952 Nashville USA CD 3 Current Country Hits
953 Jukebox Gold CD 4 Rock 'n Roll Classics
954 '70s Songbook CD 5 Singer/Songwriter
955 Unforgettable CD 6 Adult Favorites
956 Cashmere CD 7 Adult Contemporary
957 Backpages CD 8 Adult Alternative
958 Strobe CD 9 Electro Pop
959 Rock Show CD 10 Early Classic Rock
960 Feedback CD 11 Alternative Rock
961 The Cafe CD 12 Casual Rock
962 NuJazz CD 13 Acid Jazz
963 Concrete Beats CD 14 Hip-Hop/Rap
964 Martini Time CD 15 Retro Cocktail Music
965 Ambrosia CD 16 Soft Pop/Rock
966 Frequency CD 17 Club/Dance
967 Jazz Traditions CD 18 Classic Jazz
968 Impressions CD 19 Contemporary Jazz
969 Acoustic Crossroads CD 20 Contemporary Folk
970 Plaza CD 21 Contemporary Instrumental
971 Ensemble CD 22 Classical Ambiance
972 Intermezzo CD 23 Light Classical
973 Easy Instrumentals CD 24 Classic Instrumental
974 Swing Kings CD 25 Big Band Swing
975 The Light CD 26 Contemporary Christian
976 KidTunes CD 27 Children's Music
977 Aura CD 28 New Age
978 Lucille CD 29 Blues
979 Kingston CD 30 Reggae
981 Hawaiian CD 32 Hawaiian Music
982 Holiday Music HLIDY Mirror of #949 "Muzak 2" in December
Dish Network Format Name Electronic program guide identifier Notes/Format Descriptions

As a general rule, only the streams identified with "AUDxx" or "CD xx" are available to home DiSH Network users (with the exception of HLIDY.) The others may show up in the EPG lists of some older receivers, but the programming heard is that of the next channel up.

On DiSH Network, BYU Radio shows up within the Muzak channel group at #980 and carries an EPG call of "CD 30". However, this stream is originated by The Church of Jesus Christ of Latter-day Saints and carried as part of Echostar's "DiSH CD" service; it is not actuallly a Muzak-originated stream.

Notes

Channels available on Muzak via Satellite, On-Premise or through Echostar/DishNetwork platform as of January 2011:

Body And Soul

Classics

Country

Decades

Electronica

Holiday [Only available during specific holiday]

Instrumentals

Jazz

Latin

Pop

Rock

Roots

Specialty

Urban

World

Licensed for International Use

NOTE: Not all channels are available on all platforms

See also

Notes

  1. ^ "Our Company". Muzak Limited Liability Company (wfrecruiter.com). http://muzak.wfrecruiter.com/layout1.asp?Page_id=5849. Retrieved 2007-11-08. 
  2. ^ "US Patent 1,641,608" (in English). Google Patents. http://www.google.com/patents?id=5pV5AAAAEBAJ&dq=1641608. Retrieved 2007. 
  3. ^ Ted Nugent (I) - Biography
  4. ^ The Soundtrack of Your Life: Muzak in the Realm of Retail Theatre," The New Yorker, April 10, 2006.
  5. ^ John Downey, "Muzak Seeks Merger with Rival DMX," Charlotte Business Journal, April 13, 2007.
  6. ^ http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=109&STORY=/www/story/04-07-2008/0004788054&EDATE=, Retrieved on 2008/04/30.
  7. ^ Pete Iacobelli, "Muzak Is Still Upbeat," The News & Observer, April 6, 2009.
  8. ^ Adam Bell, "Muzak Facing Hard Choices," The Charlotte Observer, January 24, 2009.
  9. ^ Muzak files for bankruptcy under heavy debt, Associated Press, 2009-02-10
  10. ^ "Muzak reorganization plan cuts debt in half". MSN Money (Associated Press). 2009-09-10. http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=AP&date=20090910&id=10380218. Retrieved 2009-09-15. 
  11. ^ Rochelle, Bill (2009-09-11). "A chorus of support from Muzak creditors". The Charlotte Observer. http://www.charlotteobserver.com/business/story/939668.html?q=muzak. Retrieved 2009-09-12. 
  12. ^ Aronoff, Jen (2010-01-13). "Muzak poised to exit bankruptcy". The Charlotte Observer. http://www.charlotteobserver.com/business/story/1176914.html. Retrieved 2010-01-16. 
  13. ^ Das, Anupreeta (2011-03-24). "Mood Media to Acquire Muzak for $305 Million". Wall Street Journal. http://online.wsj.com/article/SB10001424052748703784004576220473535657098.html. Retrieved 2011-03-31. 

External links