Important Announcement #23

DATE: January 2, 2004

TO: Industry Colleagues And Friends

FROM: Stiernberg Consulting

SUBJECT: The Convergence Calendar, A Look Ahead, and More

Greetings and Happy New Year! We wish you, your family, and your company a joyous holiday season and a prosperous year in 2004.

A Look Ahead: Will 2004 Be a Better Year for Our Industry?

A lot has happened here since Important Announcement #22 (September 2002). Here is a quick look at the contents of this newsletter:

Trends to watch in 2004
How to get your copy of our annual industry event calendar
News from Stiernberg Consulting
Limited edition mouse pad calendar inserts for 2004
Database updates and e-mail newsletters
Faxback with news from you

Trends To Watch In 2004

Most indicators point to a better year in 2004 for our industry. While social, political, and economic issues still loom as threats to business in general, the entertainment and communications industry shows signs of a solid rebound in the year ahead. Here are three key trends to watch.

Lean and mean as a way of life. The excesses of the 1990's are clearly over. While sales and profits are gradually improving, the business style in our industry will remain fashionably conservative, indefinitely into the future.
Focus on sales. Our businesses can't survive without cash flow, and that means sales revenue. Savvy investors want to see positive return on sales along with growth--not just growth for its own sake. This puts the role of the salesforce (both direct and independent) squarely in the spotlight.
Bring back the passion. Our industry is all about helping people enjoy an enriched life through the tools and products we provide. After two years of struggle, there are increasing signs that people in our industry are starting to like their jobs again, remembering why we're here in the first place.

The Convergence Calendar for 2004

The converging entertainment technology, music products, and electronic systems industries host an ever-increasing number of trade shows and conferences each year. We keep track of over 100 of these events in a custom database that is updated regularly. In previous years, we've mailed a hard copy printout of the calendar as a holiday gift. This year we are trying something new. In response to your requests, we are posting the Convergence Calendar on our website. Here's the URL:

http://www.stiernberg.com/events.html

You can visit as often as you like, suggest additional events, and even download the full calendar in PDF form. Please tell us how you like the new format.

News From Stiernberg Consulting

Stiernberg Consulting and Merchant Mechanics, the New Hampshire-based market research firm, are collaborating on a groundbreaking study, "Business Impact of Quality Sound in Retail Environments". Sponsored by a consortium of leading audio manufacturers, trade associations, and business music programming companies, we will prove that high quality audio systems help create the environment for better in-store customer experience and increased sales for retailers.
Jeanne Stiernberg presented business seminars focusing on market intelligence and planning for growth at the NSCA Expo, IPRO conference, and CEDIA Expo in 2003. She will team with John Stiernberg again in 2004, with seminars and workshops scheduled for the NAMM show in January, NSCA Expo in March, and Infocomm in June. John is also presenting at the annual Folk Alliance conference in February. See the Convergence Calendar for dates and details.
The NSCA Market Intelligence Briefings Series is in its third year. We are privileged to collaborate with NSCA on the quarterly series that focuses on business issues facing the electronic systems contracting industry.
John Stiernberg's book Succeeding in Music: A Business Handbook for Performers, Songwriters, Agents, Managers, and Promoters (published in 2002 by Backbeat Books) has garnered rave reviews. John conducted Business Chops seminars in Los Angeles in the fall of 2003, and continues to write a series of magazine articles based on the book. Visit your bookstore or www.succeedinginmusic.net for full details.
Valerie Martinez, daughter of our office manager Yesenia Martinez and her husband Walter, was born 12/5/03. The family is happy and healthy, and we wish them all the best. Contact Yesenia via e-mail c/o yesenia@stiernberg.com.

Do You Have a Stiernberg Consulting Mouse Pad?

A few years ago we sent a nifty mouse pad that included a calendar insert as a holiday gift. We recently secured a limited supply of 2004 replacement calendar inserts. If you are still using your mouse pad and would like a new calendar, please let us know via the enclosed faxback survey or via e-mail. We'll send it out to you promptly with our compliments. (Sorry, we're out of the original mouse pads. . . .).

Postal vs. E-mail Newsletters

We have received requests that our newsletter be sent via e-mail. We've also noticed that many people's postal mailing addresses change more frequently than their e-mail addresses. What's your preference? Does an e-mail newsletter get deleted or caught in your spam filter? Please help guide our communication strategy--and update your contact information--on the attached faxback survey.

Grand Prize Drawing

For those new to this series, we offer a chance to win a grand prize just for staying in touch with us via mail (e-mail or post) or fax. Here's how to enter. Returning the attached faxback survey enters you in the special prize drawing. The prize is a combination of John Stiernberg's book Succeeding In Music, plus a ¤50 American Express Gift Cheque. On Tuesday, February 3, 2004, the winning survey will be drawn at random from the ones received by either fax or mail. Sound like fun? Please respond today!

Visit Our Website

We've added features and upgraded the look of our website. Please visit www.stiernberg.com for access to all prior newsletters plus lots of information on Stiernberg Consulting. Looking forward to hearing from you!