Muzak Holdings

Muzak Holdings LLC

Type	Private, partly owned by ABRY Partners
Founded	1934
Headquarters	Fort Mill, South Carolina, United States
Key people	Steve Villa, CEO
Industry	Music, On-hold messaging, Commercial Sound Systems, Drive-Thru Systems, Commercial TV Systems
Products	Distribution of music
Employees	1,000
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 background music to retail stores and other companies.

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

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 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" sound 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; 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 conducted 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 began recommending the music be provided at low, almost subliminal, volume levels and discovered 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 synonym 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 used Muzak in many of its space missions to soothe astronauts and occupy periods of inactivity.^{[citation needed]}

Over the next two decades the basic programming approach remained 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 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, 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 specialized channels of music. Muzak also pioneered "audio architecture", a unique process of designing custom music play lists for specific clients. During this period, it acquired a “foreground music” service and began offering music channels of 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]

By the late 1990s the Muzak corporation rebranded itself and today, little of the music Muzak distributes consists of re-recorded instrumental versions of popular songs, although the service still continues as the "environmental" channel.^[4] Today, Muzak offers over 80 channels of satellite music in addition to customizable music programs tailored to their clients' needs.

For many years, Muzak held a virtual monopoly in the field of background music for businesses. However, the advent of alternative music delivery technologies provided business owners with options. Both U.S. satellite radio companies repackaged their services for business use, as XM For Business and SIRIUS Music for Business. Like Muzak, both satellite radio providers' business subscriptions require payment of 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 problems, losing over $9 million in the second quarter of 2006 alone^[5]. Muzak's CEO, Steve Villa, stated the company has $438 million in debt coming due in 2009.

On 12 April 2007, Muzak Holdings, LLC announced to its employees that it might merge with DMX Music.^[6] This merger was approved by the Department of Justice one year later.^[7] As of April 2009, it appeared the deal was off, but it's possible the two parties would try again.^[8]

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 due in the next couple of months. Business was off because of a number of companies closing, but because Muzak served so many different types of clients, Villa said, recovery was possible.^[9]

Bankruptcy

This section includes a list of references, related reading or external links, but its sources remain unclear because it lacks inline citations. Please improve this article by introducing more precise citations where appropriate. (February 2009)

Please help improve this section by expanding it. Further information might be found on the talk page. (February 2009)

This section may require cleanup to meet Wikipedia's quality standards. Please improve this section if you can. (February 2009)

On 10 February 2009, Muzak Holdings LLC filed for Chapter 11 bankruptcy protection.^[10] An official company press release that day stated:

"As reported on January 19, 2009, the Company reached an agreement with its secured lenders to extend the maturity date under the Company’s $105 million Credit Agreement, dated as of April 15, 2005, for a period of 22 days through and including February 10, 2009. The maturity extension served as a catalyst for constructive negotiations with each of the Company’s major creditor constituencies concerning a comprehensive financial restructuring that will maximize value for all interested parties. Muzak and its major creditor constituencies are committed to building upon the momentum gained over the past 22 days in an effort to continue, and ultimately complete, restructuring negotiations, which can be implemented on an expedited basis in Chapter 11."^[11]

A company spokeswoman, Meaghan Repko, said total assets were about $320 million. She declined to provide a more exact figure for the company’s total debt. The company expects to continue to operate. A statement said it had “sufficient means” to support itself through a bankruptcy reorganization.^[12]

Kirkland & Ellis was hired as the company’s bankruptcy law firm. Moelis & Company will serve as the financial adviser.^{[citation needed]}

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. A hearing is planned for October 27, at which time creditors can vote if a judge approves.^[13] The company said an "overwhelming majority" of unsecured creditors supported the plan. Also, Muzak had almost twice the cash it did in February.^[14]

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

• '50s & '60s Hits
• '70s Hits
• '80s Hits
• '90s 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 (Modern/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)
• Québécois (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

Look up muzak in Wiktionary, the free dictionary.

Similar companies

• Applied Media Technologies Corporation, providers of SIRIUS XM Satellite Radio's business services and Eos Business Music
• Dish Network
• In-Store Broadcasting Network
• Music Choice
• PlayNetwork
• Trusonic
• Jamendo

See also

• Beautiful music

Notes

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