New Business Model
During this time Muzak became a franchise operation, with local offices each purchasing individual 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.
By the late 1990s the Muzak corporation rebranded itself; as of 2010, Muzak distributes nearly 3 million commercially available original artist songs. 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. This merger was approved by the Department of Justice one year later. However, as of April 2009, the deal appeared to have faltered.
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.
Read more about this topic: Muzak Holdings
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