Los Angeles has long been central to the music industry from the recording studios, the record labels, the clubs and large music venues. While record labels lose money as sales drop with the popularity of online downloading, companies providing the equipment used to make the music have seen an upsurge in business. Two music-related companies made the Fastest Growing Private Companies list. Line 6 in Calabasas made the list for a third year in a row; Schecter Guitar Research Inc. in Burbank was included for a second year. TCUS, a domestic division of a Danish company, landed on the Inc. 5000 Fastest Private Growing Company List for 2007. The Westlake Village-based company distributes sound and voice processors and effects, and software for digital recording. Members of The Police used TC Group products on their current reunion tour, and the re-formed Led Zeppelin will do the same at a concert in England. Product innovation keeps the revenues flowing for these companies. Line 6 develops and manufacturers amplifiers and effects processors for guitar and bass; and software and equipment for computer-based recording. The effects processors and computer hookups share a digital technology allowing for a wide variety of sound to be available to guitarists. “Unlike traditional products that did a good job of providing you with their one signature now we can have many sounds in one device,” company President and CEO Mike Muench said. Line 6 placed No. 49 on the Business Journal’s Fastest Growing Private Companies list with revenue growth of 4.3 percent between 2005 and 2006. The company had been No. 37 on the previous year’s list with 17.6 percent revenue growth between 2004 and 2005. Schecter, a manufacturer of guitars, basses and acoustics used by Tommy Lee and members of The Cure and The Neville Brothers, was No. 18 on the fastest growing list. Revenues increased by 31 percent, from $13.4 million in 2005 to $17.6 million in 2006. The company was No. 19 on the previous year’s list with revenue growth of 35 percent between 2004 and 2005. <!– Line 6: President and CEO Mike Meunch’s products provide versatility. –> Line 6: President and CEO Mike Meunch’s products provide versatility. Attempts to reach Schecter President Michael Ciravolo were not successful. TCUS placed No. 4,652 on the Inc. magazine fastest growing companies list with 37.7 percent revenue growth between 2003 and 2006. The focus of the TC Electronic brand has shifted of late after having been spread too thin in the broadcast and high-end film production industries, explained TCUS CEO John Maier. Use in movies Those are TC Electronic processors used on CNN and in major feature films such as “The Lord of the Rings” trilogy. Looking at future potential, development attention was switched to performing and recording musicians. Rather than introducing fewer than a half dozen products per year, over the last 12 to 18 months TC Electronic has brought 30 products to market, Maier said. The U.S. division has adopted the mantra of its Danish headquarters, “More great products faster,” Maier added. Line 6, meanwhile, makes its processors attractive to guitar and bass players through the wide variety of sounds produced and the ease of using them as the technical aspects of setting up to play or record are removed. “It doesn’t play the guitar for you but it certainly gives a lot more opportunity to make music rather than setting up your gear,” Muench said. Being located in the Los Angeles area is seen as a plus for both companies. The rich community of active musicians can be drawn on for employees and customers, said Muench, who himself has played in bands. The Westlake Village location of TCUS puts it close to the headquarters of Guitar Center, its largest retail customer. “It’s nice to be close to where a lot of music is happening,” Maier said. “We can try products out and try more market testing and focus stuff that would be hard to get if we were in the middle of Nebraska.”
