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Curtis Basque thought he had died and gone to heaven when he stumbled across St. Barnabas church in east Saint John, N.B., last summer. "It was a miracle," says the lanky 47-year-old music producer. "All of my prayers were answered."

Desperately seeking a new home for his recording studio after being forced to vacate his previous location the year before, Mr. Basque had taken his car out one lazy Sunday afternoon to reflect on his problem.

"I had driven that route hundreds of times," he says. "And then, out of nowhere, nestled in a clearing just a few feet back from the road, there it was ... a big 'for sale' sign hanging right under the stained glass window. I swear to God, it had to be nothing less than divine intervention."

Eight years earlier, he opened Basque Studios in the city's Uptown district. "It took some time to get the word out," he says, "but within a couple of years, I was booked solid."

By 2005, however, business slowed down considerably. With cheap technology signalling the advent of home-based recording, Mr. Basque watched helplessly as forces beyond his control chipped away at his profit margin. "The bottom just fell right out of the entire industry," he says. "The rules changed so quickly that there was no time to either prepare or react."

Soon after, a new landlord asked him to leave his long-time rental spot on King Street.

The middle-aged rocker forged ahead, scouting potential locations across the city where he could "make as much noise as I damn well pleased, night and day."

The 140-year-old Presbyterian church was a revelation. The sanctuary revealed itself to be both structurally sound and a bargain at $25,000.

He had the tapes rolling again by mid-autumn. "Acoustically, the room is very big," he says, "but the old oak floors and ceiling absorb the sound beautifully. And the ambience is quite conducive to creativity, with the original chandelier, woodwork and stained glass windows making the recording process almost a religious experience."

Still, the studio has done little to resurrect his business.

"My faith is waning," confesses Basque. "I guess my thinking was that, if I built it, they would come."

What the experts say

Louis Thomas is the president of Halifax-based Sonic Entertainment Group, a music company that deals in all aspects of the recording industry. After analyzing Mr. Basque's situation, his recommendations are encouraging.

"To begin with, music is a multibillion-dollar sector in Canada," he says. "In recent years, the national spotlight has been focused heavily upon our emerging East Coast artists, meaning that the industry here is much more developed than it was even just a few years ago. There are a greater number of business opportunities for his facility out there today than ever before."

Mr. Thomas believes that recording studios need to adapt to market changes in order to succeed.

"While it is no secret that illegal music downloading has brought retail sales down right across the board, live performances are doing better than ever," he says. "He has the gear, the expertise and the space - the elevated altar area would make for an ideal stage. Why not consider doubling it up as a venue for concerts or corporate events? Heck, even a good house party will drum up business."

Mr. Basque might also consider branching out into other areas of the music industry, adds Mr. Thomas.

"Artist management, concert promotion, merchandising, public and media relations, voice-over work, radio ads, corporate audio production ... he might even think about starting his own record label," he says. "Having a high-end studio at your fingertips is a real value add for all of these endeavours."

Ultimately, Mr. Thomas feels music recording will be the bread and butter of Mr. Basque's future business.

"Curtis has an excellent product and, like it or not, you can't beat high-end gear if you are looking to make a great-sounding recording," he says. "And, perhaps more importantly, as a musician himself, he can bring the kind of 'ears-on' experience that his clients are looking for and can relate with. His years working different sides of the industry put him in an ideal position to succeed at this venture."

Blaine VanSnick isn't as optimistic. The president of SGCI Communications, a leading marketing firm in nearby Sussex, says there are key factors working against the studio.

"I'm not convinced that there is much of a local client base to begin with," he says. "A lot of artists now enjoy not only the convenience of home-recording technology, but also its cost effectiveness. Let's face it: How many musicians make the kind of money it takes to produce a recording in that kind of higher-end studio setting? And, given the facility's remote location, those who can afford it probably don't even know that it exists."

Still, Mr. VanSnick believes there is still an opportunity for the business to succeed.

"First, Curtis must study the marketplace and figure out what his target demographic is," he says. "Once that is done, he can build his brand and message around the things that differentiate his product from the competition: higher-than-average sound quality and engineering expertise. He can also niche the studio as a unique destination experience - sort of a creative getaway, far from the distractions of everyday living."

Mr. Basque should then focus his efforts on getting that message out to the market.

"If he is looking to draw clients from outside of the region, then it starts and ends with a high-impact audio-visual website experience that will showcase these competitive advantages," says Mr. VanSnick. "A direct mail and e-mail campaign to both artists and industry players would probably prove to be more efficient and affordable than any type of advertising buy, in terms of creating market visibility. And perhaps he could augment that campaign with some sort of online incentive-laden promotion or contest."

A little name-dropping wouldn't hurt matters, either. "He should consider anchoring all of these marketing efforts with a big-time East Coast artist - someone like Joel Plaskett, Matt Mays or Great Big Sea - in exchange for free or discounted recording time. This would give the studio instant credibility and help to attract bigger clients with bigger money."

By the numbers

Value of studio: $310,000

Monthly expenses: $5,400

Hourly studio rate: $45

In a nutshell

Evaluate

By studying both the marketplace and the competition, Mr. Basque will be able to determine his target audience.

Diversify

Developing new products and services in and around the studio will allow Mr. Basque to generate greater opportunities for his core business.

Branding

The studio can distinguish itself from its competitors by positioning itself as a higher-end creative experience, offering quality and expertise in a unique setting.

Marketing

Anchoring the product with a well-known artist will give the studio instant credibility and visibility. As well, an incentive-laden direct mail campaign to select targets will drive traffic to a website and create better market visibility.