SPECIAL: NAMM ISSUE
January 17, 2008
VOLUME 25 NO.1

THE MAGAZINE FOR MUSICAL INSTRUMENT AND SOUND PRODUCT MERCHANDISERS

 
 

   
 

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-Table of Contents
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FEATURES
America the Beautiful 2010 has been a good year for American patriotism. And we don’t just mean annual rituals such as the Fourth of July.
Not Doubting Thomas
Mendello Retires, Thomas Named Fender CEO
Former Guitar Center CEO Larry Thomas has a new gig: CEO at Fender Musical Instruments Corporation.
The ‘Spin’ on the DJ Market Whether your store carries a full line of DJ products, just a few or none at all, it’s hard to dispute that these products have carved a major indentation in the MI marketplace.
Music City Mystery Summer NAMM had many highlights, but attendance dropped 4 percent compared to last year. The future of the show is a topic on many minds.
The Canadians’ Club Changes galore took place at this year’s installment of the MIAC show in Toronto. The date changed to May. The location changed. Why were the adjustments made? Did the alterations work?
Floyd Rose Sued Geoffrey McCabe, an inventor and guitarist, has sued Floyd Rose Guitars and distributor Davitt & Hanser Music for patent infringement.
Pay It Forward! You’ve heard enough bad news. We take a look at the fantastic things happening in MI today.
-‘MIM is the Word The Musical Instrument Museum opened in Phoenix to a lot of fanfare. Rebecca Apodaca, an expert on antique instruments, gives you a rundown of the latest thing to hit MI.
-‘Loud and Clear Pro audio products continue to sell. We get the scoop from four top manufacturers.
-‘Open Door’ Policy NAMM makes a big change by allowing member-invited guests on the last day of Summer NAMM.
-Musikmesse A-107K! Attendance at Musikmesse and Pro Light + Sound dipped slightly, but optimism was up.
-It’s in the Cards ! You need to have PCI DSS-compliant terminals to handle credit card transactions by July 1. What are we talking about? Don’t worry, we’ll explain.
-Unplugged Acoustic guitar sales grew dramatically in 2009 and the beginning of 2010. Is this the beginning of a new trend?
-Head of the Class! We shine the spotlight on many of the new companies that launched at NAMM.
-Musicorp Mourns Mike Murphy We honor the sale rep’s life that ended way too soon.
-Is a New Healthcare Plan Just Snake Oil? We take a thorough look at how a new public healthcare plan can affect you and your employees. ?
-Bonanza! Behringer Buys Bosch Brands Behringer’s parent company added the Midas and Klark Teknik brands to its stable.
-The Stars Will Come Out…This Weekend We highlight a few of the celebrity appearances at NAMM.
-What A Long Strange Trip It’s Been!!! We reminisce as we close out the first decade of the new millennium. It was a tough 10 years for many. How about for the music industry though? What’s ahead?
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It’s Voting Time! Here are your nominees for the 24th annual Music & Sound Awards.
-Here We Come to Save the Day!!We provide a plethora of accessories that manufacturers assure you will provide excellent margins.
-For Those Who Make Lesser Publicized Instruments, We Salute You!!For the first time, we pay tribute to instruments and products that get little press coverage. We provide a well-deserved spotlight for these products!

-The Latest, Industry, Dealers, People and Product Buzz and Showcases.

COLUMNS
-The Music & Sound Independent Retailer: We bring back our popular Independent Retailer Round-table. Providing four pages worth of answers are Gordy Wilcher & Lisa Kirkwood.
-Five Minutes With: We lend our ears to Marty Garcia, Founder and CEO of Future Sonics.
-MI Spy: Spy makes a visit to New York City to check out stores in both downtown and midtown. Service has to be good to win over discerning New Yorkers, right? We’ll find out.
-Dan the Man: Dan Ferrisi, with the help of occasional strategically placed SAT vocabulary words, discusses the prospect that the industry may have lost luster since a promising and upbeat January NAMM show.
-Birth of a Product Two former PRS veterans combined forces to found Knaggs Guitars. The story behind the Maryland- based company, which debuted a line of products at Musikmesse.
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Sales Guru: Sales persistence pays off. Just ask Gene Fresco
-Veddatorial: Dan Vedda provides a can’t-be-missed Summer NAMM synopsis.


FORMIDABLE FEMALES

-Kathy How:Now here’s a story you don’t hear connected to MI every day. A woman who grew up in Cape Town, South Africa, studied medicine and later moved to England.
-Sarah Heil:We’ve all heard the stories about people beginning in the mailroom and later becoming the CEO of a major corporation. Those people are rare, but it does happen.
-Sue Avant is a trailblazer. She’s also someone who
has varied interests. And she is, indeed, formidable.

-Mary Ann Giorgio It sure sounds like a great job to cover soap operas like Days of our Lives and speak to celebrities on a daily basis. But MXL’s Mary Ann Giorgio was never comfortable in that industry. She sure is comfortable at MXL Microphones though.
-Fusion Bags For the first time, we feature multiple people in this column. We look at the genesis and growth of the all-women founded business, Fusion Bags.
-Linda Arink is one of the very few female executives at a DJ company. Learn how she became involved and why she hopes we won’t even need to have a column about top industry females in the future.
-Debbe Stephenson stumbled upon MI shortly after college, but is sure glad she did. She’s now president and COO of Pro Co Sound.
-• Mary Peavey
-• Jennifer Tabor
-• Tarina Dunwoodie
-• Stacey Montgomery-Clark.
-• Cathy Duncan
-• Bee Bantug
-• Dale Krevens
-• Melanie Ripley
-• Susan Grund
-• Toby Nady
-• Shawna von Behren.
-• Berenice Chauvet
-• Sue Kincade
-• Tish Ciravolo
-• Vikki Hayward
-• Roxana Ramirez
-• Susan Lipp


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FROM HERO TO ETERNITY?
Will "Guitar Hero" Bring Customers Into Your Stores?
[January 2008 - Page 1]
Copies of "Guitar Hero" are selling faster than you can sing the chorus to Black Sabbath's "Iron Man." That's certainly great news for Activision, whose Red Octane division manufacturers the three-game series. In fact, CNBC reported Activision is on track to have its most profitable year ever. "We didn't expect this demand," said Activision CEO Robert Kotick on the Nov. 27 edition of the CNBC program Fast Money. "'Guitar Hero' was even featured on The Ellen DeGeneres Show. Even my mom sees 'Guitar Hero' on TV."

The news got even better for the "Guitar Hero" manufacturer when French media company Vivendi announced on Dec. 2 it would purchase Activision for $27.50 a share, and merge its video games unit with Activision's. The $9.85 billion deal will give Vivendi a 52 percent stake in the new company, which will be called Activision Blizzard.

Massive "Guitar Hero" sales are also good news for the music industry. After all, the more people involved in music, the better, right? But the key question is, is this good news for MI? The answer is "yes."

Before we explain, let's get rid of the legal-style mumbo jumbo. In no way are our findings scientific or statistically significant. We only interviewed eight people. In addition, we spoke to people who visit "Guitar Hero" forums on the game's Web site. Hence, we only interviewed avid players. Results could be different if we interviewed passive "Guitar Hero" participants.

But, on the plus side, we only interviewed people who played no musical instrument whatsoever before purchasing any of the three "Guitar Hero" games (or a fourth title in the series, "Guitar Hero Encore: Rocks the '80s"). That whittled a long list of potential interviewees down to only eight. However, this allows us to truly find out if non-musicians will go to stores to buy gear solely based on playing the video games, which is truly what we wanted to find out and what is most important to MI. We interviewed a random group of people who responded to a Web site forum posting and they are not related to each other nor are involved in our industry.

Out of the eight people we spoke to across North America, all eight said they are heavily considering buying musical instruments or have already done so because of "Guitar Hero." All said playing the video game was the ONLY reason they plan to purchase MI products, perhaps at your store. Also fascinating is the fact that not all of the people we interviewed are pimply-faced teenagers. Ages run a wide gamut.

The paramount reason why these respondents want to purchase MI products: confidence. Previously, they thought it was too hard to play an instrument. But thanks to their success playing "Guitar Hero," they think they can become at least adequate players. And because each of the respondents was so adamant about at least strongly considering purchasing MI products, we believe the results would translate favorably if a much larger study were conducted. Also, on the positive side, our results are objective. Unlike some studies funded by companies or organizations, ours was not. In fact, we decided to write this story completely on our own and nobody even recommended we do so. Only after compiling the results did we contact other parties for comment.

OK, enough of the legal-ese. Let's get to our interviewees. All eight people said they liked "Guitar Hero" the most because of the music. All said they thought the music selections were tremendous and the ability to rock out in their living room like their rock idols sure doesn't hurt either.

Let's Get Rocking
Our first respondent was Jonathan Gan, 30, of New Britain, Conn. He has played all three versions of "Guitar Hero." "Not being terribly musically talented, it's great to pretend for a couple of hours a day that I'm up on stage rocking out," Gan said. Although he doesn't plan to buy a guitar, he said the only reasons are because his father always played guitar and wanted him to follow in his footsteps. "I want to be different, so I plan to get a piano. I really like classical music in addition to [rock]. There's just something about the piano I like.

"The [game] has encouraged that," he added. "Even though I know I'm only playing a piece of plastic and pushing some buttons, it's still a feeling of satisfaction when the song's over."

Kevin Myers, 22, from Smyrna, Ga., has played the video games since "Guitar Hero 2" became available for Xbox 360. He has all three versions, and even the "Guitar Hero Encore: Rocks the '80s" version. The reason why Myers originally bought the game was because, "I love music. It's probably my favorite hobby. But I didn't have the patience to play a [real] guitar. A lot of my friends play the guitar and the learning curve on the actual guitar is out of control. With my personality, I couldn't sit around playing a guitar for six years with the first three being awful at it. With 'Guitar Hero,' you can be really good within three weeks."

But surprisingly, despite the previous comment, Myers is now seriously contemplating buying an instrument. "In the past, I said, 'OK, I'll never be good at it,'" said Myers. "But now it's something I'm really looking into. My friends who play guitar say 'Guitar Hero' actually helps them with their finger work. They say playing the crazy solos [on the game] improves their finger strength.

"When I played the game, I thought, this is really fun," continued Myers. "Now how cool would it be if this were a real instrument? When you play a real instrument, the sky's the limit. I'm considering buying a bass because it has four strings compared to six on an [electric] guitar. I want to start out with the least number of strings. I plan to go into a store in the very near future."

Bossier City, La.'s, Kevin Warren, 20, was next to sing "Guitar Hero's" praises. Warren has played versions one, two, and three of the game for a year. "My friend plays guitar and I asked to borrow one of his since I've been playing the game," said Warren. "It's inspired me to delve into playing the real guitar. It's hard to learn how to play guitar, but I'm interested in trying. Actually, I'm not only interested in getting a guitar. Another one of my friends owns a drum set and I'm interested in playing the drums also.

"I always thought guitars were cool before," he said. "But after playing the game, it makes me want to play the real guitar and the actual songs [featured] in the game."

Jeffrey Hill is such a huge fan of "Guitar Hero" that he pre-ordered two of the games directly from Red Octane. The 44 year old serves in the U.S. Navy and is stationed in San Diego. Hill first learned about "Guitar Hero" when watching VH1. He has played all three versions, as well as the '80s game. "We have 'Guitar Hero' parties at my house," said Hill. "My friends come over. They're all addicted to it. We play all night long."



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