Put another download in the jukebox and let the music roll

By PETER GRIFFIN

The days of selecting your favourite tunes from an array of CDs in a jukebox are coming to an end.

A Paraparaumu company is building a thriving export business selling MP3-based jukebox systems.

The Music Systems Group, born in the garage of founder and manager David Jaques, expects to turn over up to $1.5 million in the next year as it sells its digital jukeboxes in Australia, Europe and the US.

The company, which employs 25 people, has sold 175 digital jukeboxes so far, attracting considerable interest at overseas trade shows.

Music Systems manager David Jaques said the proliferation of portable MP3 players and the ease with which the song format could be downloaded through the internet meant listeners had become comfortable with the concept of storing music digitally.

"Over the past 12 months people have acclimatised to MP3-based music and there is increasing demand for these types of products," he said.

So far, the company has been selling its digital music systems - costing about $13,000 each - to hotels, clubs and bars.

The systems have a graphical user interface that runs selections of songs, karaoke tracks and music videos which are shown on screens.

The company is also developing domestic digital music devices for homes and cars.

Mr Jaques said that market was held back only by strict licensing laws. He believes it will open up to manufacturers within two years.

"Commercially they're still selling enough CDs to make that business viable," he said.

"When the CD market begins to quieten, they will start licensing domestic use of MP3s in a big way."

Music Systems has secured copyright licences for audio tracks and music video clips locally, but had to spend nine months going through the application process to win licences for the lucrative Australian market.

The jukeboxes come with enough songs to fill 300 CDs.

Users then subscribe to a CD-ROM-based monthly update service which can add the latest hits for $1.25 a song.

The jukeboxes can also be updated through the internet.

Mr Jaques said the company tried unsuccessfully to attract seed capital from investors early in its development, but had managed to gather $300,000 from private investors.

The digital jukeboxes will become even smarter than they are now.

Card readers will be installed to allow credit card payments, and pub-goers will be able to use voice recognition to pick their favourite songs.

Computer-generated holograms will be screened, and enthusiastic karaoke singers will be able to record their performances.

Links


Diverse Digital Jukebox