Operating pinch is felt
on the jukebox
Like the fabled repairman for the
fabulous brand of washing machine,
it may be the lonliest piece of coin-op
equipment in town. It sits in the
corner, only responding when you
stimulate it with a quarter. But it can
be your best companion over a
solitary dinner or in a crowded bar. ..
The jukebox is dying, if you listen
to a number of coin-op businessmen.
It has a future, as it has a past, if you
talk to others. It is only marginally
profitable, or a loss leader, if you talk
to still others.
The consensus seems to be that
the large profits are not there, but
that the jukebox retains an appeal,
especially to location owners.
One manufacturer of the boxes
recently noted Play Meter's annual
survey of operators as supporting
"our experience that many
operators reluctantly keep these
machines because of the need to
offer a full line of services to
patrons." The survey of last year
revealed that, while three years
earlier the jukebox held the
distinction as the highest earning
piece on location, it fell last year to
fourth place, behind videos, pinballs,
and pool tables. The weekly gross
intake from a phonograph was, on
average, $50, down from $54 weekly
in 1979.
Manufacturers can cite a "steady
decline for more than a decade," said
the factory spokesman, "and
currently U.S. manufacturers
produce about 25,000 machines a
year." Factors, such as the copyright
royalty fees per jukebox, fly in the
face of the business when growth is
considered. Higher profitability of
other coin-ops such as videos, of
course has to be weighed also.
When called in an informal,
random survey by Play Meter, one
Virginia operator said his line of
jukeboxes dropped this year, "ten
down to eight. I'd like to sell them all.
The only thing it serves as is a
necessary service," he said, echoing
the manufacturer's assessment.
"Only in country bars do they do
well-only where the customers can
sit down and drink. It's a service to a
location."
Some operators even loan
jukeboxes to locations in order to
gain entry to those location.
"Cigarette machines are another
way," said a southern operator, "but
I don't want to do that, to have to fill a
machine. That's essentially what you
do with a jukebox, refill it with
records."
A Midwest operator was more
optimistic. Kirt Miller of Amuse-0-
Matic Co., Fort Dodge, Iowa, said he
sees in the jukebox revenues "a
slump, but it seems to be coming
back. I really don't see it ever
ceasing. We donate a lot of time to
them, there's good money in it, and it
has to rise."
Miller pointed to the meshing of
music styles-country and western
with rock, rock with mainline
records, and so forth-as stimu-
lating the general play of jukeboxes
and enrichening the cashbox. In fact,
he said, he believes they will survive,
while he saw coin-op games as all
having a fated lifespan, eventually
losing most of their appeal to players.
Across the board, however, the
average jukebox operator is
probably gloomier. A Philadelphia
operator saw revenue from music
getting smaller and smaller, with
locations' patrons not taking the
time to play jukeboxes. "The day of
the fast-food diner is going too," said
operator Barry Fireman. Fast-food
restaurants, with their music piped-
in or none all, are obsoleting the
casual, friendly diner where
someone always plays the jukebox
when the music dies.
An Atlanta operator said he has
bought new boxes in the current
year (which few of those contacted
had done)-but he sees the music
market "drying up," and said he uses
phonographs only to accommodate
locations whose favor he would
like to curry for taking his games.
Of jukeboxes, operator Eugene
Urso of Madison, Wisconsin (a
college city) said: "We don't like
buying them," and his company
contracts with locations for a $50
minimum on each box weekly for
servicing them. Urso cited rising
costs and canned music on location
for his present negative feelings
about the jukebox, but added: "It's
been a heckuva a good piece for
operators for a lot of years."
The box has the advantage of
staying on location for two years or
so, he noted. But, referring to royalty
fees, increased purchase price, and
other detractors from the music
machine as a revenue producer,
Ursa commented, "Too many
people are getting a piece of it."
If the phonograph, an archetype of
American coin equipment, is to
survive the eighties, then, it will take
a number of factors operating
favorably. The jukebox tax,
creativity in packaging the
phonograph, and ingenuity in
operating are certainly among the
key issues for coin-op music.
-by Ray E. Tilley
Universal USA expands sales , service staff
Paul C. Jacobs, president of
Universal USA, Inc. has announced
the addition of Mark P. McCleskey
to the Universal sales staff, effective
August 10, 1981.
McCleskey, who will serve as
East!lrn regional sales manager, has
spent the la,st five years with Sefco
Distributing Co. of Hanover,
Maryland. His most recent position
was that of vice president/sales and
marketing. A native of Memphis, he
PLAY METER, October 1, 1981
holds a B.S. Degree from the
University of Tennessee.
In a related announcement,
Jacobs noted that Aida J. Donnaloia
has joined the firm as Customer
Service Manager.
Donnaloia has over ten years'
experience in various capacities
including customer service manage-
ment, general operations manage-
ment, sales coordination, and
related administrative functions. In
additions, he has experience in the
video games business through his
former position as customer service
manager for Data East, Inc.
"We are very pleased to add Mark
and Aida to our staff at Universal.
These two individuals will add greatly
to the performance and growth of
our company, through both their
professional manner and their
dedication to excellence," com-
mented Jacobs.
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