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One of the company’s secrets is the sheer volume of music they offer —
more than 555,000 titles. The company’s added about 100,000 titles in
the last 18 months, plus they’ve collected data on all of their titles,
and created a searchable database of printed music. That helps the
company when its trying to move into new markets, such as music
teachers. In fact, Sheet Music Plus signed up 17,000 music teachers for a
rebate program.
The company also turned its modest growth into a plus. Cerny said
that, in addition to revenue growth and profit, the company has always
paid close attention to another metric — revenue per employee. He said
that keeping track of that statistic helped the company grow as much as
25 percent per year during the downturn.
Sheet Music Plus has also benefited from the unique nature of the
sheet music industry. It has contracts with about 1,000 labels to sell
their content (some of the labels share a parent company, though). And
because the labels sign exclusive distribution deals with record
companies, companies don’t really mind that they’re available at the
same online store as their competitors. And some of the music publishers
actually like it.
David Jahnke is vice president of national sales at Hal Leonard, a
music publisher that has 140,000 titles at the Sheet Music Plus store.
He says that Hal Leonard is the exclusive print provider of Disney, EMI,
Universal and Rogers and Hammerstein, to name a few, so if people want
sheet music from any of those sources they have to buy Hal Leonard.
But he also says that all of the publishers have competitive content,
and using Sheet Music Plus, people can see a sample of their products
and a sample of their competitors’ products and see which one they like
better.
“Competition is healthy. We don’t mind being put out there with all the other publishers,” Jahnke said.
Jahnke also finds Sheet Music Plus’ comprehensive database useful
because it’s made for everyone’s catalogue. When he goes to a music
store, he often sees the employees looking on Sheet Music Plus to figure
out who publishes what.
The company is concentrated on growing even more. The global sheet
music industry is about $1.1 billion, with about half of that in the
United States, Cerny said. And Sheet Music Plus is only a $25 million
company — so far. The company just completed their data center, which is
in San Francisco, to help prime for this expansion.
They face competition from other pure-play online sheet music
sellers, as well as music stores and more general retailers like
Amazon.com. And to help keep ahead of that competition, they want to
expand into new markets internationally and more institutional markets,
like schools, locally. Cerny said that the company does about 80 percent
of its business in the United States.
The company is hiring in their marketing and fulfillment departments,
but Cerny couldn’t nail down exactly how many. But they have an
interesting qualification preference — they try to hire musicians. Of
their 40 employees, two-thirds are musicians, including Cerny, who is a
conservatory-trained pianist.
“We very much like to think of ourselves as a company run by musicians for musicians of all different kinds,” he said.
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