Mood Media

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Mood Media Corporation
Trading name Mood Media Corporation
Type Multinational Public company
Traded as TSXMM, LSEMM
Headquarters Austin, Texas, USA
Key people
Products Music, On Hold Messaging, Scent, Digital Signage, Audio/Video, Mobile Marketing
Subsidiaries
Website www.moodmedia.com

Mood Media Corporation was created after the acquisition of Mood Media by Fluid Music Canada, Inc. in 2010.[1] It is an international in-store provider of music, digital signage, hold music, on-hold messaging, scent, integrated Audio/Video, and interactive mobile marketing solutions.[2] The company delivers solutions to a variety of retailers and other business verticals such as restaurant, financial, healthcare, hospitality and QSR. Mood Media Corporation has expanded its product offerings through acquisitions of Somerset Entertainment in Canada, BIS Group in Europe, and Trusonic, AEI Music Network Inc., Muzak, DMX, Technomedia, and GoConvergence in the United States.[3][4][5][6][6][7]

Company history[edit]

Mood Media Corporation was founded in 2004.[6] Originally known as Fluid Music Canada, Inc., the company rebranded itself in June 2010.[2] The company went public in 2008 and is traded on the Canadian, American and European stock exchanges.[2][4][8]

Steve Richards is the CEO and President of Mood Media Corporation,[9] having replaced Lorne Abony as CEO.

The company has made a number of acquisitions over the years, expanding its presence across Europe, North America, Asia and Australia.[2] In general, company acquisitions continue to operate under their previous branding and management. According to internal reports, the company reaches 100 million people in 470,000 commercial locations in 40 countries.[7]

Competitors[edit]

Acquisitions[edit]

Trusonic[edit]

Main article: Trusonic

Fluid Music Canada, Inc. acquired Trusonic Inc. of La Jolla, California on October 17, 2007. Founded in 1999, Trusonic provides commercial music services to companies like Macy's, JC Penney, and Panda Express, and they broadcast over 80 million songs monthly through their proprietary music network.[5]

Somerset Entertainment[edit]

Fluid Music Canada, Inc. announced the completion of its acquisition of Somerset Entertainment on November 25, 2009.[3] The acquisition valued Somerset Entertainment at $53.1 million.[10] Somerset is a producer and distributor of recorded music sold through non-traditional retailers.[8] The company has a network of over 28,000 interactive kiosks that allow customers to preview CDs in 18,500 locations in more than 20 countries. In 2007, Somerset sold over 16 million records and recorded revenue of $90.6 million and an EBITDA of $20.5 million. Somerset employs over 180 employees and has offices in Toronto, Ontario, Buffalo Grove, Illinois, Minneapolis, Minnesota, and Essex, United Kingdom.[10]

Muzak[edit]

Main article: Muzak (brand)

In March 2011, Mood Media acquired the American background music company Muzak Holdings for a reported $345 million.[6][11] As the leading commercial sound provider in North America, Muzak distributes music for in-store marketing inside shopping malls, restaurants, and dental offices.[6][12] In the US alone, Muzak provides background music for more than 300,000 locations, either directly or through a franchise operation.[4][12] The company had filed for bankruptcy in 2009 and had completed a restructuring prior Mood Media’s acquisition.[6][12] Revenue for fiscal year 2010 was $195 million.[6] In October 2012, Muzak acquired the assets of one of its major franchisees (Independence Communications Inc.) in the mid-Atlantic region of the United States.[13]

DMX[edit]

Main article: DMX (music)

In March 2012, Mood Media announced the acquisition of DMX and its subsidiary AEI Music Network Inc..[7][14] The deal was valued at $86.1 million.[14] DMX, a US provider of multi-sensory branding services, uses music, video, and digital signage, scent, and audio/visual systems to create branded connections with customers that encourage loyalty.[7] The company has provided its services to large-scale clients, including Gold’s Gym, McDonald’s, Burberry, and Whole Foods Market.

BIS Group[edit]

In June 2012, Mood Media acquired BIS Group, a company specializing in audio-visual installations for corporate and commercial clients.[15] Operating in Belgium, Luxembourg and the Netherlands, this acquisition extends Mood Media’s reach into Europe.[15][16] The deal consisted of a 22.5 million Euro cash buyout.[16]

Technomedia and GoConvergence[edit]

Mood Media acquired Technomedia, along with its sister company, GoConvergence, in December 2012 for $23 million.[17][18] Based in Orlando, Florida, Technomedia provides audio-visual and interactive media for retail outlets, theme parks, museums, restaurants and corporate settings.[17][18] Principal clients include Abercrombie & Fitch, the Hard Rock Café, and Cirque du Soleil.[19]

IPO[edit]

Mood Media, while it was still known as Fluid Music Canada, Inc., held an initial public offering in June 2008 on the Toronto Stock Exchange.[4][8] The company offered stock at $2 per share, which subsequently raised $27 million.[4]

Business model[edit]

Through its various subsidiaries, Mood Media provides audio, visual, multimedia and scent marketing solutions to a diverse range of clients. These include specialty retailers, department stores, supermarkets, financial institutions, and fitness clubs.[2]

The Mood Media music library, which contains millions of individual tracks, has been amassed in two ways. First, each company acquisition adds to the ever-growing library. The purchase of MP3.com alone added more than 3 million new tracks.[3] Second, some company subsidiaries have their own means of adding new music with little to no royalty obligations.[3] Trusonic, for instance, operates “American Idol Underground,” where aspiring artists can upload and share their own tracks.[5] At the time of acquisition, Trusonic already had a library of 2 million tracks.[5]

Awards and recognition[edit]

In 2011, Abony was selected as a finalist for the Ernst & Young Entrepreneur of the Year Award.[20] At the November awards ceremony, he was named the winner in the media and entertainment category.[21]

On January 4, 2013, Abony appeared on the CBS reality series, Undercover Boss.[22]

References[edit]

  1. ^ http://www.newswire.ca/en/story/655441/fluid-music-announces-proposed-acquisition-of-mood-media-group-for-euro-160-million-and-related-financing
  2. ^ a b c d e "Mood Media Corp (MM:Toronto)". Bloomberg Businessweek. Retrieved January 17, 2013. 
  3. ^ a b c d Simon Houpt (August 23, 2012). "Fluid Music looks to acquire Somerset". The Globe and Mail. Retrieved January 17, 2013. 
  4. ^ a b c d e "Fluid hits high note in merger". Financial Post. Retrieved January 17, 2013. 
  5. ^ a b c d Mark Hefflinger (November 1, 2007). "Fluid Media Networks Acquires In-Store Music Provider Trusonic". Digital Media Wire. Retrieved January 17, 2013. 
  6. ^ a b c d e f g Anupreeta Das. "Mood Media to Acquire Muzak for $305 Million". The Wall Street Journal. Retrieved January 17, 2013. 
  7. ^ a b c d Brad Lemaire (March 19, 2012). "Mood Media to buy DMX Holdings in $86.1 mln deal". Proactive Investors. Retrieved January 17, 2013. 
  8. ^ a b c "Lorne K. Abony, CEO & Chairman - Mood Media Corporation". TechFinance. Retrieved January 17, 2013. 
  9. ^ "Steve Richards, CEO and President". Mood Media. 
  10. ^ a b "Fluid Music successfully acquires 100% of Somerset Entertainment Income Fund". Canada Newswire. November 25, 2009. Retrieved January 17, 2013. 
  11. ^ Steve Ladurantaye (September 6, 2012). "Mood Media and the revenge of Muzak". The Globe and Mail. Retrieved January 17, 2013. 
  12. ^ a b c Richard Blackwell (August 23, 2012). "Muzak acquisition is sweet music for Mood Media". The Globe and Mail. Retrieved January 17, 2013. 
  13. ^ Adrian J. Cotterill. "Mood Media Acquires A Franchisee’s Assets". DailyDOOH. Retrieved January 17, 2013. 
  14. ^ a b "USA: Consolidation Continues – Mood Media Acquires DMX". Ooh-TV. March 19, 2012. Retrieved January 17, 2013. 
  15. ^ a b "Benelux: Mood Media Acquires Audio-Visual Specialist Bis Group". Ooh-TV. June 1, 2012. Retrieved January 17, 2013. 
  16. ^ a b "Mood Media Completes The Acquisition Of BIS Group - Quick Facts". RTTNews. June 1, 2012. Retrieved January 17, 2013. 
  17. ^ a b "Mood Media Announces Acquisition of Technomedia Solutions, a Premier Provider of Advanced Entertainment, Education and Consumer Experience Solutions". Canada Newswire. December 27, 2012. Retrieved January 17, 2013. 
  18. ^ a b "Mood Media pays US$23 million cash plus performance fees for Technomedia assets". Winnipeg Free Press. December 27, 2012. Retrieved January 17, 2013. 
  19. ^ "Mood Media buys Technomedia assets for US$23-million in cash". Financial Post. December 27, 2012. Retrieved January 17, 2013. 
  20. ^ "Mood Media CEO Lorne Abony Nominated for Ernst & Young Entrepreneur of the Year in Ontario". SYS-CON Media. July 8, 2011. Retrieved January 17, 2013. 
  21. ^ "Mood Media CEO and Chairman Lorne Abony winner at Ernst & Young's Entrepreneur of the Year Awards". SYS-CON Media. November 4, 2011. Retrieved January 17, 2013. 
  22. ^ Erik Spanberg (December 28, 2012). "Mood Media CEO goes incognito for CBS". Charlotte Business Journal. Retrieved January 17, 2013.