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Communication Then and Now

One of today's secrets to success is understanding the current state of the art in business data and voice communication vs. the antiquated modes of yesteryear. Consider all the progress just in the 1990s: the Internet and cell phones became commonplace, e-mail became the simplest and least expensive way to communicate worldwide in writing, satellite transmission costs dropped by more than half, and long-distance telephone costs became a small fraction of what they were at the beginning of the decade.

In terms of sound, digital transmission capabilities have changed how we transmit audio around the world—totally reorganizing the way commercial music is listened to and sold. Knowing how to utilize these sophisticated and cost-effective forms of communication just might give you that critical advantage you need to be a big winner in your market niche.

Just a few decades ago, “written” communication meant either handwritten or typed correspondence with a nonelectric typewriter. Typing was taught in high school, primarily for the girl who wanted to become a secretary—a job title that has become virtually extinct because of the development and acceptance of the personal computer. The telephone had reached most homes and quickly became the primary medium of communication, even though a long-distance call was very expensive and required the assistance of an operator. Businessmen switched from written to verbal communication, except when a written record was required. If it was, they had to use what we now refer to as “snail mail,” also known as the postal service. The Western Union telegram was the quickest form of written communication, and any other overnight coast-to-coast message delivery was unheard of. The formation of Federal Express changed that, and suddenly next-day delivery was possible for goods and services such as master tapes, at least in most locations in the U.S.

Next came the fax, and we were back to written communication again. This was particularly true when the personal computer finally had sufficient RAM, hard disk memory, and a reasonably fast modem at a price most businesses could afford. These new written messages had the urgency of telegrams and were read immediately. Cutting-edge businesses had the new technology, and it opened up communication, transmitted over standard telephone lines, to our current global market. It quickly spread worldwide so that today we can send written fax transmissions virtually anywhere on the planet.

Then came the Internet's quick evolution from an esoteric means of transmitting scientific data to a consumer “must have” item to stay abreast of change. This evolution was largely due to the development of fast modems. Whereas only a short time ago the modem speeds were super slow, now T-1 speeds of 1.5 million bits per second are available over local fiber-optic cable company lines in major market areas for under $50 per month. Compare this to T-1 lines, which only a short time ago cost $3,000 per month. As each day goes by, more of the world adapts to the use of e-mail as a primary communication source because of its relatively low cost, compared to fax, in most global markets. Still, there are many countries where Internet service providers (ISPs) are not nearly as aggressive as in the U.S., causing a much slower acceptance of e-mail there than here.

The pro audio industry has been quick to jump on e-mail as the preferred form of communication. It is unlikely that any of you today do not have access to some form of e-mail if you do any business in this industry. Because of the aforementioned minimal T-1 speed cost in major markets such as Los Angeles, a new cottage industry of home video editing studios has sprung up. Now, major postproduction studios will send rough cut edit lists of weekly television series to home editors who own an Avid or some other brand of editor, and everyone benefits. The postproduction facility/major studio gets the same level of quality (without worrying about union rules and employee benefits) from a cadre of independent contractors who would prefer to work at home in their leisurewear. We even have a name for it: telecommuting. Much like the evolving audio project studio, this new industry has arrived as a result of increased communication speeds at low cost. Progress. This phenomenon is no surprise to audio pros, who live with the constant technical advances that almost overnight can change the services, methods, and cost basis we must offer our clients in order to retain their business.

Today's communication requires knowing how to express yourself in writing. To be most effective, learn how to trim your communication with a succinct use of the written word. Whereas you can ramble on verbally on the telephone, or in person, to do so is a real waste of e-mail time and space for both you and your recipient. The way you “look” in writing has become extremely important. And, since the majority of the communication is from your PC, being able to type fast has become a necessity in order to ensure your survival in our industry. In addition, it is wise to have the latest spell-checking, thesaurus, and grammar programs to be certain you don't look undereducated or foolish to the recipients of your written communications.

No matter where your studio is located, investigate your communication alternatives and determine how best to utilize them to motivate and increase your global business. Longdistance telephone is a classic example. In December 1992, AT&T charged me $1.44 per minute for a phone call between L.A. and London. Today, my cost per minute is 12¢. These changes mean you can now afford to solicit business from around the world by e-mail, fax, and phone with virtually no dent in your promotional budget. In the continuing search for more business, you can now afford to make almost any part of the world a revenue source. Also remember, this low-cost solicitation will cost you virtually nothing in increased labor costs if you can find a way to get whoever solicits business for your facility to find the time in the morning to call Europe. That will be the best time to talk to the newfound friends they first met there when you recently took them to the AES or some other European convention. See how rapidly what starts as social interaction and the trading of industry gossip can turn into doing business with each other for mutual benefit.

Gear up for the future. To augment personal and business communication (voice, fax, e-mail, snail mail, and carrier pigeons) we may have Iridium. This venture, spearheaded by Motorola, is launching over 300 communication satellites. You now have available a single source for cellular communication anywhere in the world, soon at a reasonable cost. Bill Gates has a competitive plan ready to go that will cause the price to come down further. Free enterprise. There will be many birds (satellites) in the sky. For audio professionals, it means more opportunities to send our product more efficiently to more markets, which increases the customer base.

You can profit if you know how to take advantage of these new developments. For example, I was hired recently to advise a Middle Eastern company that wanted to build a facility in a monarchy that had no world-class audio facilities. They wanted to know how they could solicit enough business to fill the elaborate studios they were planning to build. The only answer, to me, was to recommend a teleport with satellite uplinks and downlinks so they could import/export signals from/to other countries.

In the course of due diligence, I discovered that strategic alliances could be negotiated with other major facilities in the principal cities of Europe and the U.S. to receive their partially completed programming at the end of their day, provide continuing postproduction services during their night, and send it back to them via satellite for their start-up the next morning to continue with the project. What made it even more viable was that the planned teleport at the new facility could also sell its services to that country's government for data transmission at a substantial profit. This allowed the hourly charges for the new receiving facility's services to be low enough to provide a considerable markup for the program-providing facility. Because of the roughcut nature of the work being provided, and project pricing, frequently the client would not even be aware that there was more than a single facility working on his program. It wasn't devious—it was very smart, and it was based on newly available communications technology.

While you're thinking about all the new forms of transmission and communication, don't forget that sometimes the best way to reach a friend, customer, or affiliate is to pull out your “fat boy” Mont Blanc pen and compose a handwritten note. The key point is that the understanding of the mix of old and new methods of communication will give you an advantage over your competitors and provide you with new services to offer new clients whom you may now prospect because of lower communications costs. Never stop looking for better ways to lower costs, increase revenue, and enjoy profits. Good communication opens the door. The rest is up to you.