Do Bars Really Profit From Jukeboxes?

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Do Bars Really Profit From Jukeboxes?

Do bars really profit from jukeboxes

Jukeboxes have become a kind of novelty in bars and restaurants; not all of them have them, and patrons are usually fascinated when they encounter one. Of course, they’re a source of entertainment, but are they worth the investment? The question of whether or not a conventional bar can profit from jukeboxes will depend on a few factors. Here, we will break down the factors that determine whether most bars actually make money from their jukeboxes.


The Digital Age of Music

Thanks to advances in technology, the traditional jukeboxes that made their way into the bars and restaurants of the 70s, 80s, and 90s have become an endangered species. As such, most modern bars have made the transition to digital jukeboxes.

By doing so, they have been able to reduce their bar expenses: This is because a digital jukebox will have the ability to track the music that is being played. The money that is then inserted into the device will be used to pay out the respective royalties.

Eliminating Music Licensing Companies from the Picture

One of the numerous benefits of opting for a digital jukebox over a traditional one is that it eliminates having to pay music licensing companies. In fact, a typical bar can save between $7,000 and $15,000 in expenses that would have gone towards paying music licensing fees. In other words, the venue will not be required to do anything to cover those charges.

Instead, a patron will take care of the costs, as the money they insert into the jukebox will cover the songs that they wish to listen to, and only those songs.

Typical Daily Earnings

Most conventional bars and restaurants can expect to make $20 to $40 a day. However, as mentioned, going digital means they don’t have to pay any licensing fees, as the user ends up paying directly a la carte. As such, the proprietor of the jukebox will make between $20 to $40 from each jukebox that they have in their establishment.

Changing Times

Interestingly, things didn’t use to work this way. In the past, profits would be split down the middle, with jukebox operators getting half the money while the bar got the other half. This put pressure on the jukebox operator to not only maintain a large set of jukeboxes, but a massive collection of CDs to keep patrons interested.

As for the bar, they were required to pay licensing fees based on a preconceived occupancy formula, which usually proved detrimental to the bar owner and hugely profitable to the music licensing corporations.

The Power of Choice

Patrons will be more inclined to stick around and hang out at your pub or restaurant if they have the option to play the music they want to hear. Of course, they’ll listen to options chosen and paid for by other customers as well, but many people will get excited to hear their choice played over the speakers for everyone to hear.

The Staying Power of “Dwell Time”

Moving past the licensing companies, jukeboxes have another means of generating revenues for most bars. The fact is when most people attend a bar as a group, they end up requesting several songs. As such, many patrons will remain at the bar until their songs are played in their entirety.

The end result? Patrons end up staying at the bar for longer, meaning they are more likely to order food and drinks to keep them occupied while they wait for their favourite tune to play. This “dwell time” model or approach had been proven to generate increased revenues for most bars.

Choose Superior Amusements

When you choose Superior Amusements as your digital jukebox supplier, you’ll reap the benefits of a photo booth, as well as hundreds of thousands of fully licensed songs for your customers to choose from. We offer free installation, and share the profits with you — so what do you have to lose? Call us to learn how you can get a digital jukebox in your restaurant or bar today!

To learn more about jukeboxes and how they can benefit your establishment, call Superior Amusements at 1-800-528-7913 or contact us here.

Jukeboxes have become a kind of novelty in bars and restaurants; not all of them have them, and patrons are usually fascinated when they encounter one. Of course, they’re a source of entertainment, but are they worth the investment? The question of whether or not a conventional bar can profit from jukeboxes will depend on a few factors.