Marketplace

MARKETPLACE
NEWSLETTER
PAGE 6, DECEMBER 30, 1973
40 Years at lusic
Here's what happened to automatic music over the past 40 years, from 1934 to 1974.
The year 1934 is used because that was the year the new and modern type automatic
phono, which actually first appeared in ' 33, went into all out production.
In 1934, with prohibition over and taverns springing up like weeds all over the
nation, these were some of the mfrs in the automatic phono field: Mills Novelty co.;
Capehart Corp.; Gable; Electra; Wurlitzer; Seeburg; AMI; Rock-Ola. A few other mfrs
entered the business almost every year thereafter, like Aireon, Sweet Sixteen, Exhibit
Supply, etc., but didn't last long.
The average price of a phono in '34 was $250. Compare this to the '74 average price
of $1l500. That's an increase of over 50Cf}& the past 40 years. Over-all average increase
of 1~ per year.
This year of 1974 there are four automatic phono mfrs. Listed alphabetically these
are: Rock-Ola, Rowe-AMI, Seeburg and Wurlitzer. The big foreign phono mfr of NSM phonos
is Lowen-Automaten of Germany.
A survey we conducted just before '34 at the request of one of the leading record
mfrs resulted in an estimate of approximately 50,000 automatic phonos on locations in
the U.S. at that time. This figure absolutely fascinated the record makers whose busi-
ness had fallen to absolute zero during the depression of the '30s.
The estimate of the number of automatic phonos on locations in the U.S. today is
750,000. That's a gain of 1,500}& over the past 40 years. In short, there are 15 times
more phonos on locations in '74 than there were in '34.
·
The '34 phono pricing per tune was 5¢, 6/25¢. Ten years later pricing was 10¢,3/ 25¢.
This year of '74 and for some five years now pricing has been stepped up to 2/25¢, 5/50¢,
10/$1. Pricing has gone up but 15Cf}& over the past 40 years. An average of about 3.7%
per year,
Based on the growth factor of all industries, the automatic music industry with a
growth of 1,50Cf}& over the past 40 years, is truly phenominal. Few industries can match
such growth. A jump from 50,000 to 750,000 phonos on U.S. locations in 40 years. Most
impressive and most unique is the fact these are income producing instruments. No other
such instrument exists in all the music field.
Automatic phonos have been the showcase for the music of America, old and new mu.sic.
They have, most definitely, been responsible for the "star" status of singers, bands
and instrumental groups. They have boomed "Tin Pan Alley" as well as the record making
business. They have been extremely effective in helping retailers everywhere to enjoy
better business and greater profits in many ways. They have, most of all, kept America
and all the world singing and dancing at the most economical cost in all the history
for such outstanding entertainment.
The automatic phono dates back to Thomas Alva Edison and the day he attached ear
phones to a little box featuring a horn and a wax cylinder that played back his reci-
tation of "Mary had a little lamb", From that day in 1887 to this day in 1974 the
automatic phono has grown into a very impressive industry ,