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Fender Goes Digital So You Don’t Quit Guitar | TechCrunch

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Fender Goes Digital So You Don’t Quit Guitar | TechCrunch

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Ninety percent of people trying to learn guitar quit in the first year. That's a big problem for the musical instrument industry, but also a big opportunity for one of the top guitar makers - Fender. If Fender can use digital tools like a new tuner app it's building to keep musicians engaged, it stands to sell them a lot more guitars, amplifiers and more over their lifetime.

That's why today Fender is announcing the hiring of one of the smartest people in music tech, Ethan Kaplan, as its new Chief Digital Products Officer.

Kaplan was a long-time SVP of technology for Warner Bros. Records before helping start Live Nation Labs, a tech arm for the concert ticket giant. He spent the last seven months as the general manager of audio fingerprinting pioneer Gracenote.

I've seen Kaplan speak at music tech conferences, and his no B.S. attitude about what will and won't work is refreshing in an industry of pipe dreamers. Few have Kaplan's historical context mixed with modern understanding that's necessary to see how music will evolve in the face of technology.

Kaplan tells me he's aiming to build a complement to Fender's big instrument sales business by using technology to ease "the journey from being a beginner to intermediate to being an advanced player." To do that, Kaplan says "we've got to listen to players" to find out what they need.

Fender's recently hired CEO Andy Mooney explains that "We have a problem getting the consumers who buy their first guitar to commit for life." If Fender succeeds in keeping up a musician's momentum, they'll end up earning a ton of money buying multiple guitars and amps. "We just need to reduce abandonment of first-time players by 10% to double the industry," Mooney believes.

I tried learning guitar when I was 15, but got frustrated because I couldn't find super easy songs to play with the few chords I knew. Without the satisfaction of hearing real songs come out of my instrument, I quit. It was almost 10 years before I picked up the axe again, and I only stuck with it because I stumbled upon some exceedingly easy tabs for tunes by a singer I love, Bright Eyes.

Mooney had a similar experience. Growing up he was "struggling" because he couldn't figure out how to play his favorite song. It was 20 years before he figured out it was in a different tuning. Fender wants to deconstruct these obstacles.

Eventually, the company wants to build apps for guitar tablature (basic instructions for how to play songs), track downloads, and deeper music education. But the first step in Fender's digital transformation will be a new guitar tuning app Kaplan is building.

Breaking out in this crowded vertical won't be easy. There are already slews of popular indepedently developed tuning apps, as well as ones from music powerhouses like Gibson. Fender will have to work hard to differentiate itself.

That's where Kaplan's knowledge of software and networks comes in. He's working on an identity layer to link the tuning app with future Fender digital products. This way, Fender can learn about a musician and then personalize each experience.

For example, if the tuner knows what kind of music you like, it could recommend different tuning configurations to try. Or if it knows what you're tuned to or what chords you know how to play, it could suggest tabs for songs you'll be able to quickly learn. If Fender's apps can hear your play or at least know how frequently you do, it could recommend you buy new guitar strings or one of its effects pedals. Shortcuts from app to app to products could keep players in the Fender ecosystem.

"It's not just about making a tuning app, then another app, and another," Kaplan says. "It's about how do we build a product that does something more and enables the overall journey, not just the utility. It looks like the ties that bind a bunch of products together."

Outside of tuners, the landscape becomes more chaotic and rife with potential for Fender. Most tabs online aren't verified as accurate, and musicians spend hours coming through mediocre tutorial videos on YouTube looking for assistance. They're eager to learn all the skills necessary, and Mooney says "We think we're uniquely suited to connect those dots."

You might expect the rise of DJing and Electronic Dance M usic to be causing hard times for analog instrument makers like Fender. But it turns out traditional instrument sales are still growing, albeit slowly. Mooney says Taylor Swift is inspiring a new generation of young women to pick up a Fender Stratocaster. If Kaplan's tools can make Swift's songs easier to learn, those fans might put more guitars in the "Blank Space" on their wish list.

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Fender Goes Digital So You Don't Quit Guitar

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Ninety percent of people trying to learn guitar quit in the first year. That's a big problem for the musical instrument industry, but also a big opportunity for one of the top guitar makers - Fender.

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Australia: Servco Pacific Capital acquires Harley-Davidson dealerships - DealStreetAsia

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Australia: Servco Pacific Capital acquires Harley-Davidson dealerships - DealStreetAsia

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Servco Pacific Capital (SPC), a direct investment group specialising in consumer, retail and distribution businesses, has launched a dedicated investment platform with the acquisition of two Harley-Davidson dealerships in Australia, including the largest Harley-Davidson retailer in the country.

Financial terms of the deal are undisclosed.

SPC purchased Perth Harley-Davidson and Southwest Harley-Davidson, adding to its growing private equity investment portfolio, which also includes guitar company Fender.

The acquisition is in line with SPC's strategy of investing in strong consumer brands and acquiring businesses that are fundamentally sound and poised for growth.

"Our proven track record of stewarding iconic brands coupled with our near century-long experience in the retail space is what attracted us to this investment opportunity," said Mark Fukunaga, CEO of Servco Pacific Capital.

According to Fukunaga, the firm is confident in building a "long-term partnership with Harley-Davidson that will be beneficial to supporting the Harley lifestyle."

Going forward, SPC will consider additional acquisitions to further extend the sales and services of the dealership group.

Seasoned entrepreneurs such as those at SPC look for patient, long-term capital that is highly differentiated from traditional private equity, said Matt Janopaul, Managing Director of Servco Pacific Capital.

"We're able to partner with talented management teams to build significant businesses. Moreover, the teams don't have immediately worry about a forced sale in three to five years due to PE fundraising cycles or partnership dynamics," he added.

SPC is based in San Francisco and is the private equity group of Servco Pacific Inc., a large multi-generational and privately owned businesses in the Hawaiian Islands.

Incepted in 1919, Servco, which posts in excess of $1.4 billion in annual revenue, is the exclusive distributor of Toyota, Lexus, and Subaru vehicles in Hawaii, and controls one of the largest Toyota dealership networks in Australia. It maintains operations in the United States, Asia, and Australia, with business interests that include automotive distribution and retail, speciality insurance brokerage, and appliance distribution.
Also Read:
Australia: Allegro buys majority stake in Terrex Seismic

Australia to block any attempt to move BHP Billiton listing

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Australia: Servco Pacific Capital acquires Harley-Davidson dealerships

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Servco Pacific Capital (SPC) , a direct investment group specialising in consumer, retail and distribution businesses, has launched a dedicated investment platform with the acquisition of two Harley-Davidson dealerships in Australia, including the largest Harley-Davidson retailer in the country. Financial terms of the deal are undisclosed.

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Fender Play: Fender Introduces New Digital Learning Program - Guitar World

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Fender Play: Fender Introduces New Digital Learning Program - Guitar World

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Fender

Fender Musical Instruments Corporation (FMIC) today announced the launch of Fender Play, a first of its kind video-based learning platform for desktop and iPhone, poised to innovate the guitar education landscape.

Fender Play is designed to change the way beginning players learn how to play guitar through hundreds of easy-to-follow, instructor-guided video lessons utilizing a song-driven, personalized learning path that enables even brand-new players to master chords and riffs in minutes.

The latest in a suite of innovative online and mobile products from Fender Digital, LLC., Fender Play marks a major milestone in the brand's digital evolution. Upon signing up for Fender Play, users answer a variety of questions on preferred instrument and genre, including rock, pop, folk, country and blues.

Those responses guide the creation of a comprehensive, customized curriculum comprised of personal "learning paths."

Courses in these paths focus on a song-based method, teaching foundational core techniques and riffs alongside lessons for recognizable hits from music's most-esteemed artists and bands, such as U2, Shawn Mendes, the Rolling Stones, Foo Fighters, Meghan Trainor, Carrie Underwood and more. The program boasts a vast catalog of hundreds of songs arranged specifically for players at various skill levels.

"Ninety percent of people who pick up the guitar will drop out after one year, and we see Fender Play as a solution to that challenge" said Ethan Kaplan, General Manager Fender Digital.

"Our intuitive platform, whether used on its own or as a practice supplement to in-person lessons, allows first time players and beginners to get started. It allows them to learn when and how they want in a digital setting with superior production and accuracy far surpassing your average online lesson video. This is a pinnacle step for Fender Digital as we continue our progression from analog to digital, linking the offline and online experience of playing, while maintaining over 70 years of guitar history."

The curriculum was created with a panel of educational advisors from prestigious music programs, such as the Thornton School of Music at University of Southern California in Los Angeles and Musicians Institute in Hollywood. Intensive research and user testing helped Fender and its team of instructors hone in on the ideal learning process and techniques, which includes a progressive new micro-learning strategy designed to keep beginners engaged and focused.

On an ongoing basis, PhDs and instructors from these institutions diligently oversee the creation of lessons, implement research-based pedagogy and apply solid instructional design to effectively promote muscle memory and retention.
Fender Play allows users to:
* Choose the instruments, songs and genre they want to learn, putting them in control of their musical journey.

* Track progress, evolution and development in real-time. Users see their progression and milestones through a user-friendly dashboard - the ultimate progress report.

* Study with a proprietary custom video player that shows chord diagrams on the lesson screen.

* Automatically bookmark at their convenience to learn at their own pace, while following a clear and unified curriculum. Upon return, players will be greeted with refresher lessons on newly-learned skills.

* Learn at their own pace on the go and at their convenience with the portability of program via laptop or mobile devices. A Wi-Fi or LTE connection is required to access the program.

* View 4K quality multi-camera footage and production elements, such as split screens and over-the-shoulder angles, which provide a valuable perspective for the new player. Each clip is short and easy-to-digest, making every moment not only educational, but engaging.

* Access a large glossary of helpful terms, chords and videos.

* Discover helpful articles, tips and tricks based on their lessons and learning path.

* Blaze their own trail based on personal taste and discovery, rather than following the recommended, custom path; browse by genre or featured artist.

* Learn their favorite songs and riffs! Skills are taught in less than two minutes and only 22 minutes to a beginner's first recognizable riff.

New players can sign up for a free, 30-day trial at play.fender.com and can cancel anytime or continue their journey for $19.99 per month. Fender Play is launching in the U.S., U.K. and Canada, but can be accessed globally in English.

To learn more about Fender Play, visit play.fender.com. Fender Play also is available via the Fender Play app for iPhone, available for download at the App Store.

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Fender Play: Fender Introduces New Digital Learning Program

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Fender Musical Instruments Corporation (FMIC) today announced the launch of Fender Play, a first of its kind video-based learning platform for desktop and iPhone, poised to innovate the guitar education landscape.

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With control, TPG Growth and Servco make Fender more consumer friendly - PE Hub

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With control, TPG Growth and Servco make Fender more consumer friendly - PE Hub

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Nine months since taking control of Fender Musical Instruments, TPG Growth and Servco Pacific are finally talking about the changes occurring at the company whose instruments helped define modern music.

Customers, for the first time, will be able to order and buy guitars at the Fender website beginning in late November, according to William McGlashan, the founder and managing partner of TPG Growth. This includes "custom-configurable" guitars, like the famed Telecaster and Stratocaster that can be made to a user's unique specifications. Such orders will likely take about two to three months for delivery. "That's the current operating plan. It could be much faster than that," McGlashan said.

Currently, consumers who try to buy a guitar off Fender.com are directed to online dealers, such as Amazon or Sam Ash, or local dealers.

The change, which may seem insignificant, reveals what is going on at Fender. The company has inspired a passionate following from the best of Rock 'n' Roll, including Eric Clapton and Jeff Beck, but has made little attempt to figure out who its customers are. That's changing, McGlashan said.

Fender now informs consumers of product updates or developments, McGlashan said. The company has also built a community channel on the Fender website that features videos from artists such as Bruno Mars, the Smashing Pumpkins or Avril Lavigne, who use its instruments. (Lavigne has her own guitar, the Avril Lavigne Telecaster.)

Fender.com provides a forum for users to ask questions or raise issues. There's even a Fender University which offers free online lessons from the Berklee College of Music.

"We want to build the Fender brand and business to match its potential," McGlashan said. "The company is known for its exceptional instruments and equipment, but we have high aspirations for what the Fender brand can be, engaging music fans on many more levels and points of contact."

Based in Scottsdale, Ariz., Fender's history dates back to the last century. Leo Fender, a radio repairman, is credited as the first to successfully design and market a solid-body guitar when he introduced the Broadcaster-later renamed the Telecaster-in 1948. Fender introduced the Stratocaster, which has been used by Jeff Beck and Stevie Ray Vaughan, in 1954. In 1965 Fender sold the company to CBS for $13 million. CBS sold the business in 1985 to then president William Schultz, and a group of employees.

Fender planned to go public last year but pulled the offering at the last moment. At the time, Weston Presidio owned about 43% of the music company. Servco Pacific, led by chairman and CEO Mark Fukunaga, agreed to buy Weston Presidio's stake in the fall of 2012, McGlashan and Fukunaga said.

Honolulu-based Servco, which owns automotive distributors and dealerships as well as a portfolio of PE investments, has been an investor in Fender since 1985. The firm, at that time, took part in the deal to buy Fender from CBS. Last year, Servco chose to boost its stake because it felt more could be done with Fender, Fukunaga said."There are opportunities as a lifestyle brand that we haven't fully realized," he said.

Servco conducted a "soft bake off" for a partner and picked TPG because of its experience in growing consumer brands like J.Crew. "[TPG] took a brand that was an online catalog company and turned it into a great global retailer," Fukunaga said.

TPG, in turn, brought in Creative Artists Agency, McGlashan said. In December, TPG and Servco completed the deal to take control of Fender. TPG and Servco pumped more equity into Fender via a refinancing in first quarter, McGlashan said. Both Fukunaga and McGlashan declined to disclose how much they invested.

Together, Servco and TPG own a majority of Fender.

"We own equal stakes and more than 50% between the two of us," McGlashan said.

McGlashan and Fukunaga, who are co-chairmen of the Fender board, are more fans than musicians. Both own Fender guitars. Fukunaga said he has about 10, including a Stratocaster and a Telecaster. McGlashan owns a Telecaster and a Guild acoustic, while his son has a Squier.

"Play? No," McGlashan said. "Do I hack around? Do I make the commitment that everyone makes to play guitar? Yes."

"I've been learning to play for 20 years," Fukunaga added. "It would be presumption to say I'm a player."
Telecaster photo courtesy of Fender. Blackie photo courtesy of Reuters.
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With control, TPG Growth and Servco make Fender more consumer friendly - PE Hub

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Nine months since taking control of Fender Musical Instruments, TPG Growth and Servco Pacific are finally talking about the changes occurring at the company whose instruments helped define modern music. Customers, for the first time, will be able to order and buy guitars at the Fender website beginning in late November, according to William McGlashan, the founder and managing partner of TPG Growth.