MARKETPLACE
,,.
NEWSLETTER
PAGE 4, APRIL, 1976
LEASE
ox
M.O.A. fizzled. Jukebox operators must now pay royalty-tribute to ASCAP, BMI, and
the others. Not just the first $8 or $1 or 50¢ per year but, instead, the fact that
from now on, year after year, ASCAP, BMI and the others will demand more, more and still
more top royalty-tribute from jukebox owners.
So far, and since 1934, jukebox makers have not shown operators how to make a better
buck with their jukeboxes. Except to increase the price of the jukebox with every new
model - year after year after year. Add on more and more costs with added on selections.
But no• one single new angle how the jukebox operators can help pay for what may be very
soon next year's $3,000 models.
Operators agree with "Marketplace" they need new and better and, most definitely,
a more profitable operating method. They went along with "Marketplace" some years ago
on 10¢, 3/25¢ play. Went along on "2-Pla.ys 2-Bits". Went along on all new and better
moneymaking angles, like 2-minute records, etc., etc. Many a.re back of "Marketplace"
today as the newest ideas come up to help jukebox operators make a. real buck again.
Leading jukebox operators AGREE they must get a "service charge" of, at the very,
very lea.st, $10 off the top of each gross collection. Must get rid of the antique, out-
worn and absolutely rediculous 50/50 commission basis and change over to 70/30 - 70/o
to the opera.tor.
In fact, here and there a few opera.tors can still split 50/50, that's where these
opera.tors a.re getting $30 and $35 minimum guarantees. They'd still be better off finan-
cially with a. $10 "service charge" and 70/30. But with $30 and $35 minimum guarantees
they can still endure today's overhead expenses plus higher and higher and still higher
costs for new jukeboxes and all repair parts and supplies.
Otherwise those jukebox operators who can't get a $10 "service charge" phs70/30
commission basis - who can't set up for $30 and $35 minimum guarantee - are going to
be faced with a very sad dilemma - and very, very soon.
..
Nov tba.t they've breached HOA - ASCAP, BMI, and the others are going to demand and
get higher and higher royalty-tribute from jukebox owners with each passing year. In
the meantime, price of labor, parts, supplies, new jukeboxes, plus taxes and a dozen and
more other expenses are zooming. Soaring up into the wild blue sky yonder. Jukebox opera-
tors are caught between the devil and the deep blue sea.
There is one out - LEASE THAT JUKEBOX - to the location. Let the location writeoff
the lease cost as a business expense. Set up a separate contract with the location to
service the jukebox. Let the ever growing royalty-tribute demand be fought over by
retailers' associations. The jukebox association didn't do so good. Operators can cut
overhead, cut all around, deduct the royalty-tribute - when they LEASE THAT JUKEBOX.
Think!