Film-Tech Forum ARCHIVE: QSC, LLC Acquires Ultra-Stereo Labs, Inc.

This is topic QSC, LLC Acquires Ultra-Stereo Labs, Inc. in forum Digital Cinema Forum at Film-Tech Forum ARCHIVE.

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Posted by Harold Hallikainen (Member # 5405) on 10-03-2016, 11:34 AM:

Two of the most powerful brands in the cinema equipment industry join forces

http://www.dcinematoday.com/dc/pr.aspx?newsID=4547

Posted by Sam D. Chavez (Member # 1841) on 10-03-2016, 11:45 AM:

USL will be missed. Great service, fast response to industry needs, and always a great competitor that kept other brands sharp.

I'm proud of my association with USL.

Posted by Carsten Kurz (Member # 5396) on 10-03-2016, 11:52 AM:

I was afraid for a while this could happen... after the digital rollout is over, times must have become harder for USL. I just hope QSC keeps most of USLs lineup (and employees...).

- Carsten

Posted by Sam D. Chavez (Member # 1841) on 10-03-2016, 01:43 PM:

As the press release states, Jack Cashin will have a continuing role so USL will live on in a new way.

Things keep changing, that's the only constant in life.

Posted by Sean McKinnon (Member # 612) on 10-03-2016, 03:40 PM:

Sam,

Is BACP still in business?

Posted by Mark Gulbrandsen (Member # 72) on 10-03-2016, 04:08 PM:

Of course it is Sean!

Really sorry to see this happen to USL, but at least they continue.

Mark

Posted by Sam D. Chavez (Member # 1841) on 10-03-2016, 06:20 PM:

BACP is indeed still in business. I was always independent of USL although in close partnership on some products. I'm mostly a dealer of a full line of products from all the best vendors.

I have quite a stock of analog readers as well parts for same. Also parts and used digital readers to take care of BACP digital readers.

Posted by Mark Gulbrandsen (Member # 72) on 10-04-2016, 11:50 AM:

Harold,

Whats going to happen to you? Were you absorbed with USL over to QSC?

Mark

Posted by Steve Guttag (Member # 268) on 10-04-2016, 01:11 PM:

quote: Mark Gulbrandsen
Really sorry to see this happen to USL, but at least they continue.

I think that is it though. It had to be a bit of a Ray Dolby moment but on a much smaller scale. You have Jack and the desire to have what you have worked on to live on, in some fashion.

I don't think there was the option of going public (or it would be a very small option) and everyone has seen how that has changed Dolby quite a bit.

Jack was/is such a major part of everything USL, I do wonder, as time passes, how QSC will run with the USL type equipment if he isn't directly at the heart of the products.

One thing nice about dealing with a small company, such as USL...they really seem interested in customer input and are reasonably fast at responding to same. Bigger companies seem to have difficulty there. It isn't that they don't listen but they move like they are covered in molasses and they don't listen to the "little guys" as loudly. With USL, you always felt like you had a voice that got heard and you saw it on the actual products.

Posted by Tony Bandiera Jr (Member # 2365) on 10-04-2016, 09:15 PM:

I don't think that things are going to change that much really. USL has always had outstanding customer service and great products, and have helped me out on many jobs....and QSC, even though they are a much larger operation, has, in my experience anyways, been the same. More than once QSC has gone out of their way to help me out with any issues with their products, and have often repaired or replaced amplifiers (even out of warranty) at very little or no cost to me or my clients.

I think the merger is gonna work out great for both companies.

Posted by Sean McKinnon (Member # 612) on 10-05-2016, 04:48 PM:

I'm glad to hear that Sam. I knew you are separate from USL the thread just brought up an opportunity to inquire.

Posted by Samuel Hynds (Member # 2610) on 10-07-2016, 04:04 PM:

QSC would like to clear up some questions about our recent acquisition of USL, Inc.

Our press release can be found at this link:

http://www.qsc.com/news/news/detail/qsc-llc-announces-the-acquisition-of-ultra-stereo-labs-inc-usl/

We have also created a list of Frequently Asked Questions and answers:

How will you integrate the companies?
We are in the process of forming an integration team responsible for developing a smooth and seamless integration plan building on the strengths of both companies, including personnel, technologies, business relationships, customers, expertise, and products. As this process could be very lengthy, USL will continue to operate as usual under the management and guidance of QSC.

What does this acquisition mean for QSC Dealers?
In the short term, there will be no immediate changes to either company’s product line or distribution channel. There is significant overlap in our Dealer networks; many QSC dealers are already USL dealers, and vice versa. Over time, and on a case-by-case basis, we may unify pricing and discount structures. QSC Dealers who are not already USL Dealers must apply separately for USL Dealership status.

Will you retain the USL name and brand?
Yes. We recognize that USL (and Ultra Stereo) is a well-respected brand in the global cinema market. USL has acquired significant “brand equity” over the years, which is one of the reasons why QSC was interested in the acquisition and is now delighted USL is now part of QSC. The USL name should now be considered a QSC brand.

What does this acquisition mean for USL Dealers?
No immediate changes are foreseen. But it does not mean that USL Dealers will automatically become QSC Dealers. USL Dealers who are not already QSC Dealers, but wish to become a QSC Dealer must apply for Dealership status and be approved before they gain access to the QSC Cinema Products line.

How will the USL and QSC cinema product catalog change?
Since the USL and QSC cinema product catalogs are highly complementary no immediate changes or product discontinuations to the USL or QSC cinema catalog are expected or planned. Over the next 12 to 18 months, our combined sales, product management, research and development teams will be working to evaluate areas for technology innovation and platform enhancement, as well as product line optimization and extension.

What about warranty and service policies?
No changes for the immediate future. Over time, we may adjust policies to be consistent among brands.

Will Jack Cashin stay with the company?
Yes. While USL Vice President Felicia Cashin will step away from operations, Jack Cashin will remain an integral and part of the product development team for USL branded products.

I’m already a USL Dealer - how do I order products now?
For now, same as you always have. Beside Felicia Cashin, none of your usual USL contacts have changed.

What can QSC and USL customers expect from this acquisition?
Both QSC and USL have an established reputation for providing outstanding service and support to dealers and end-customers, as evidenced by the fact that there are a total of nine ICTA “Manufacturer of the Year” Awards between them. We expect this commitment to continue and grow even stronger. Customers can expect more visionary products that contribute to the overall goal of improving the movie going experience. And most importantly, customers can expect “one amazing future” from QSC Cinema.

Please stop by and see us at ShowEast if you have any further questions. Both QSC and USL will have a booth on the tradeshow floor.

Posted by Ken Lackner (Member # 1002) on 10-12-2016, 08:49 AM:

Thanks, Sam! I'd still like to know if Harold will stay on board. I hope so!

Posted by Sam D. Chavez (Member # 1841) on 10-12-2016, 10:56 AM:

QSC bought USL for the engineering team as they have expertise QSC does not have in certain areas. There are no immediate changes and no one is going anywhere for some time.

Posted by Carsten Kurz (Member # 5396) on 10-13-2016, 06:13 PM:

Interestingly, QSC just launched two new cinema audio processors:

http://www.dcinematoday.com/dc/pr.aspx?newsID=4556

One with HDMI I/O and Dolby Digital Plus™, Dolby® Surround 7.1, and DTS-HD® decoding - this would be a/the only competitor for Datasats AP20.

- Carsten

Posted by Mark Gulbrandsen (Member # 72) on 10-14-2016, 12:26 PM:

Not a big fan of the QSC processors, they have a very odd menu structure, but they do sound great. I LOVE everything else they make though. If It were the AP-20 or the QSC I'd have to go the AP-20 route.

Mark

Posted by Scott Norwood (Member # 30) on 10-15-2016, 08:14 AM:

While I certainly wish both companies (and their employees well), I am curious as to why this would happen now.

Many existing theatres have upgraded their sound equipment recently with the arrival of D-cinema and should not need any upgrades for a number of years. Since new cinema construction seems to be fairly slow at the moment, I would think that the market for new cinema equipment would be fairly limited for the next several years. I just don't see where the growth would come from, outside of (possibly) "immersive sound" formats (Atmos, etc.) for speciality venues.

Posted by Richard Fowler (Member # 893) on 10-15-2016, 09:00 AM:

This type of vertical consolidation of allied companies is common in pro audio and audio visual fields as markets mature. Replacement, upgrades, international projects should provide a steady flow of product.

Posted by Steve Guttag (Member # 268) on 10-15-2016, 01:20 PM:

Scott, if you look at the combined portfolio, it mostly makes sense. QSC jumps into the ADA market immediately and now has server to speaker solutions. They also picked up the test equipment market a bit.

Really, where was there much overlap? In the sound processor market? QSC didn't have much on the low-end of things (cost wise). I think many would take the feature set of the JSD-60 over the DCP100 though neither are perfect. The UI of the DCP line leaves a bit to be desired but they ARE very flexible. While I think the JSD100 can go away now, I think the JSD60 has a place.

QSC had just brought out a new monitor/processor that seems to target the DCP100 market a bit. I'm curious as to its feature set and how it would work in our systems as compared to a CP750, DCP100, JSD60. I'm real curious if they are sticking their heads in the sand and sticking with the sill dB scale for the main fader or are going to the more intuitive 0-10 (or 0-100, if you prefer). The fact that the JSD60 is a 0-10 should be enough reason to prefer it over some stuff.

Posted by Stephan Shelley (Member # 8587) on 10-15-2016, 02:10 PM:

Doubt the JSD-100 is going to go away as it is the basis for GDC's 16 channel sound system as well as DTS object oriented one.

Posted by Mark Gulbrandsen (Member # 72) on 10-15-2016, 05:03 PM:

quote: Scott Norwood
Many existing theatres have upgraded their sound equipment recently with the arrival of D-cinema and should not need any upgrades for a number of years.

Scott, you actually answered your own question. Makes it hard for a company to survive when they just sold most of what they are going to sell for a 5 year period. And they brought their server out a bit too late to make any big dent in the industry with it.

Mark