Used with permission of CMA Close Up News Service.
By Crystal Caviness
When Rowe AMI signed a licensing agreement with BMI in August 2004, the final piece of the puzzle was complete for the oldest U.S. jukebox manufacturer's newest venture: digital jukeboxes.
BMI represents more than 300,000 songwriters, composers and publishers and 4.5 million songs, an important repertoire for Rowe AMI to secure to launch its new product. With the BMI component in the mix, along with previous licensing agreements for musical works represented by ASCAP and SESAC, the other two U.S. performing rights societies, as well as the Harry Fox Agency for U.S. mechanical licenses, the equation was complete.
"We now have access to a base of creators that is significant worldwide. Not only do they have a lot of folks they represent, but BMI (represents) some legendary writers and composers in their stable including Waylon Jennings, The Eagles, John Lennon and Chuck Berry. We have a relationship that we think is going to be very valuable for us in the launch of our network," said Doug Johnson, Rowe AMI's President and Chief Executive Officer.
Initially loaded with 45s and then CDs in the late 1980s, jukeboxes have been a part of the musical landscape, with diners and bars coming alive with music at the drop of a few coins.
Rowe AMI, a major U.S. jukebox manufacturer, opened its business in 1909, creating innovations to the mechanical entertainment industry through the years. In the 1990s, the company placed 160,000 CD jukeboxes in the marketplace, making it the largest jukebox manufacturer in the nation. Now the Grand Rapids, Mich., corporation is set to take on a new challenge by revolutionizing the jukebox industry and, in turn, improving the way songwriters and publishers are paid for jukebox performances.
At a Las Vegas trade show at the end of September, Rowe AMI - and its new division AMI Entertainment - launched its all-digital jukebox, a slick, state-of-the-art piece of equipment capable of playing virtually any song represented by ASCAP, BMI, SESAC or the Harry Fox Agency. The company manufactures the Netstar, a floor model, and the Starlink, a wall-mounted unit, with both products containing a hard drive and Internet connectivity to Rowe AMI's server containing an almost endless selection of songs. Another model, the Duet, combines a CD version with digital access. Underneath the flashy exterior, the digital jukebox is a special-purpose PC with a touch-screen color LCD or CRT monitor and either a 40 or 80 GB hard drive, allowing patrons to search for songs by title, artist, album or genre.
"Patrons will not only have a selection on a local hard drive of 3,000 songs or thereabouts - which is three times what they've had or been used to on a CD jukebox - they can download songs on our server and choose from tens of thousands of songs. The whole experience is completely different," Johnson said.
Introduction of the digital jukebox also changes the way songwriters and publishers are paid for their jukebox performances.
In the music licensing business, performances equal income for songwriters and publishers. Digital jukeboxes now take the guesswork out of royalty payments.
"Digital jukeboxes track every song played so now we can track the actual music that has been played, and pay accordingly," said John Shaker, BMI's Senior Vice President of Licensing.
Not only will accuracy be reflected in royalty statements, but songwriters and publishers may get a boost because of the accessibility to varied song catalogs.
"We've found that if the patron has a favorite song, he will search and find artists who covered that song and play that. [So] the songwriter gets exposed not just by the artist who had the radio hit, but by anyone else who may have an interesting version," said John Margold, Rowe AMI's Senior Vice President of Sales & Marketing.
Country Music songwriters and publishers stand to be among the biggest winners in the digital jukebox revolution.
"The jukebox business and Country Music grew up together. Of any genre of music, Country Music and jukeboxes seem to be the most closely aligned. Locations where Country Music is popular remain the biggest customer for jukeboxes today," Johnson said.
In the end, it comes down to the music lover dropping in change to hear their favorite tunes, with Country Music fans contributing a large chunk to jukebox revenue.
"Forty percent of money that goes into jukeboxes plays a song that would be considered a Country song," Margold said.