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Austin, TX (ZPRYME NEWS) – 06/25/08 – PlayNetwork helps stores with their music selection in hopes of persuading shoppers to linger a little longer and keep coming back — no easy task given shoppers' concerns about their financial situations.

The National Retail Federation last month projected that 2007 holiday sales will be up just 4 percent from 2006 as a weak housing market and a credit crunch cause shoppers to rein in spending. That projection is below the 10-year average increase of 4.8 percent and would be the most disappointing growth since 2002. Yet PlayNetwork marketing strategy is to benefit from this challenging retail environment, since stores will have to vie harder for shoppers' attention.

PlayNetwork has reacted to the strategy of some stores making the mistake of playing music to please the people who work there, as opposed to the people who shop there. If orchestrated properly PlayNetwork’s music methodology can be a very powerful tool in turning around flagging sales for the retail sector. Their ambient music methods create an environment for the shoppers that retailers most want to attract.

Adding to their strategy is their ability to update soundtracks every month to make them current and match promotional activities. For example Starbucks refreshes programming to reflect the music it offers for sale along with its drinks and food. Another company following suit is Eddie Bauer, which regularly introduces songs that represent the independent spirit of outdoor adventure. As part of their business strategy

PlayNetwork secures the licensing rights from record labels and pays three types of fees on stores' behalf. Stores in turn pay PlayNetwork $40 to $60 a month per location. But those monthly payments add up to less than half of PlayNetwork's annual sales. Instead, audio and video equipment sales make up the bulk. Additionally, PlayNetwork increasingly sells Web radio, podcasting and video services. A great example of PlayNetworks progressive business strategy is the relationship they have with the clothing retailer, Hollister. PlayNetwork set up cameras at California's Huntington Beach, giving real-time images of breaking waves on wall-mounted video screens in stores. Click the following for PLAYNETWORK: Financial Growth, Competitors & Partnerships | Part 2 of a 2 Part Series
PLAYNETWORK: CURRENT NEWS & FUTURE DEVELOPMENTS


Top rival Muzak, which was headquartered in Seattle before moving to Fort Mill, S.C., in 2000, plans to merge with PlayNetwork's next-biggest competitor, DMX. A representative from PlayNetwork said that planned merger, which still must be approved by regulators, helps them out considerably by creating a lot of uncertainty for their customers.

PlayNetwork has selected Antex to provide their XM-100 satellite receiver as part of a larger strategic relationship recently announced with XM Satellite Radio. Under terms of the PlayNetwork—XM Satellite Radio agreement, the new “XM for Business” service, available to business customers across the country, will enable businesses to experience XM and benefit from PlayNetwork’s industry expertise and specialized direct-sales workforce. As part of their on-going relationship, PlayNetwork’s XM for Business unit has chosen Antex to provide the XM-100 satellite receiver to their customers. PlayNetwork has used Antex’s advanced media playback device, the C400 Combo, exclusively for their custom business music and messaging services for the past several years. The inclusion of the XM-100 to PlayNetwork’s on-premise hardware offerings further enhances their full-service capability.

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Zpryme: Emerging Markets Group

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