Industry

How do you make money out of coin operated equipment?

This is a proven industry model that you may find in many countries around the world.The basic principle is that you make an investment by purchasing an income generating piece of equipment. E.g.. Pool Table                   
You then place this equipment on a suitable site. E.g.. a pub              
You negotiate with the site owner a reasonable split on the cash generated.       
You then cash the machine up on a regular basis paying the site owner his share & keeping your share. Your best "Operators", as they are called ,are able to manage hundreds of machines, finding the best sites & minimizing their running costs thus receiving excellent   
return on their investment. Machines have been known to pay for themselves within 2 to 3 months but this is the exception rather than the norm.           
Pool tables have traditionally formed the core of most operators rounds from where they have expanded into juke boxes, soccer tables & video games.           
IT IS A CASH BUSINESS & IT IS ALL ABOUT ROI.                       
Please contact us if you wish to know more.                                   

Whats going on with Juke Boxes

Whats the problem?                               
People have been making money out of other peoples ingenuity & labour without their consent                               
This is against the law as these rights are protected by the copy right act.                               

Who needs to be paid?                               
Basically there are two right holders to each piece of music:                               
-1 Composers/Song writers etc.                           
-2 Artists/Record Labels etc.                            

Each right holder receives royalties fron two avenues:                               
-A Mechanical (Copying)                           
-B Public performance                           

We thus have the following collection agencies collecting for each:                               
1 Composers etc.                           
-A Mechanical (Copying)         NORM or SARRAL or SAMRO           
-B Public performance            SAMRO           
2 Artists/Record Labels etc.                            
-A Mechanical (Copying)         RISA or AIRCO or INDEPENDENT           
-B Public performance            SAMPRA           

What do they want to be paid?                               
Mechanical:                               
RISA        R50 per month, per licenced jukebox.                   
AirCo.                         
Independent                    

NORM        R2 each time a track is copied                   
SARRAL                          
SAMRO                          

Performing:                               
SAMRO        R945 p.a.                   
SAMPRA       R1710 p.a.                   

         

F.A.Q.


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