Sunday, June 6, 2010

JAS / JANDS Merger CX Magazine News


It was a long time coming. Sydney based Jands Production Services have for some time been engaged in a price war with Melbourne live audio firm Johnston Audio Services. Sitting on one side of the war was the largest live audio in Australia - Norwest Productions.

Now there are two equally potent players, with Jands and JAS having announced a merger, effective July 1 'following due dilligence'.

JAS and Norwest had talked along the same lines. JAS were keen to reposition, feeling a little left out and facing a long squeeze on margins with Jands and Norwest matching or beating prices.

Concert promoters will now pay for more live audio - new industrial awards take effect in July, and the merger mean that a decade long freeze on hiring rates will evaporate.

The new entity - JandJ, JJands, or JJAS - will probably be called Jands. It will operate in a similar manner to the way it is now - Jands in Sydney; JAS in Melbourne. But it will coral together a singificant inventory, and snatch the title of 'Australia's Largest' away from Norwest.

Norwest itself is a conglomeration of audio firms, with Norwest Productions growing out of Sydney and buying Oceania Audio (NZ) and McLean Audio (Melb). Norwest also runs offices in Brisbane and China.

The new dynamic will probably work well for all players - Norwest tend to do more corporate and major event work, while Jands and JAS have focussed on concerts and festivals. Norwest and Jands do compete, but Norwest of late has been offering realistic pricing to extract a return to its many staff investors and its primary backers.

Winners: Pro Audio community.

Losers: Concert Promoters.

No comments: