Cover Story
(March 2007)Cover Story
(March 2007)The world's first jukebox appeared in 1889 at the Palais Royale Saloon on Sutter Street in San Francisco, Calif. It was a coin operated "Nickel-in the-Slot" machine and was a huge success, earning over $1,000 in six months. It's a story Ecast CEO John Taylor likes to tell when he reflects on the longevity and appeal of the jukebox. For Taylor it's only fitting that his company headquarters are just blocks away from the birthplace of this inspired machine that was destined to became an industry staple.
"Ecast is continuing the tradition of jukebox innovation and success that started in San Francisco," Taylor explained. "That first jukebox had tremendous emotional impact. It gave people choice and affordable entertainment. There is a rich history behind this device we have powered and we respect that. We are totally committed to understanding our connection to the patrons and what makes them happy, so that we can continue taking jukebox entertainment to the next level."
CEO
John Taylor has been with Ecast since 2003.
Taylor joined Ecast in January of 2003 bringing with him a long track record of success in leveraging broadband to create new products for new media markets. When he looked into the digital jukebox he was hooked.
"I've worked in companies where streaming video, graphics, and broadband were all part of the equation. Here was this wonderfully nostalgic device that had a unique way of reaching audiences and was being transformed by digital technology. My mind started racing!"
Taylor soon discovered, however, that success with the digital jukebox was not simply a matter of bringing Silicon Valley thinking to the coin-op industry. "It wasn't until I got out there and started meeting our customers that I realized just how well we needed to know our operators before we could build product for them," he said. "It takes a while to dig in; after seven years I think we're there."
Broadband to the bone
Broadband connectivity is the heart of Ecast, it's the key to the company's track record for innovation, and it's what fuels the company's vision for the future.
Ecast's
inside sales team enjoy their jobs, (l-r):
Tim Barnes, Wes Romine, and Adam Slusser
"The closer your business model matches current consumer behavior, the better your chance of success," noted Taylor. "In most homes today you'll find a broadband connection. Why? Because we want what we want when we want it! With its capacity for interactivity and on-demand delivery of content, broadband was natural for us to build on. Why use dial-up anymore?"
In a nutshell a broadband connection comes down to one simple phrase: "Fat pipes, always on." Unlike dial-up, the broadband connection enables continuous 24/7 access to each of the 10,000-plus jukeboxes on the network to an enormous amount of information traveling at super fast speeds to and from the Ecast Data Center. In other words, you get what you want-NOW!
Ecast
Product Managers: Paul Rattay (l) and John Howe.
The benefits of this persistent connection are many: New jukeboxes can be quickly added to an operator's route and start delivering revenue enhancing on-demand content immediately; larger files (e.g. music files and video attract loops) can be added quickly and continuously; transaction information can be collected and made available for Web-based reporting and decision-making can be made in near real time; and jukebox updates happen automatically, also throughout all hours of operation. In short, broadband enables the flexibility and speed that breeds innovation.
Growing a broadband network
Today's robust Ecast broadband network did not come about overnight. Ecast has spent millions of dollars deploying and constantly upgrading network infrastructure, data storage, and processing capacity to get to where it is today: reliable, scalable, and operating a large national network (with a few international outposts) in near real time.
"From the start we understood how broadband could revolutionize the jukebox so we pioneered the first touch screen jukeboxes entirely connected by broadband in 2001. Six years later our competitors are just now fully coming on board with their own exclusively broadband jukeboxes. That is a flattering testament to our foresight and indicates an industry with room to grow," Taylor said.
Ecast's
Vice President of Network Sales Steven Kellam.
The first phase of the Ecast network was rolled out in January 2001. It gave operators unprecedented centralized two-day access to revenue and operational information. It also automated many previously manual processes, most notably music management. The broadband connection gave consumers anywhere, any time access to music on the Ecast network and enabled Ecast operators to derive additional revenue from the resulting premium plays.
By 2004 the company had moved to the second phase of its network, which was another groundbreaking advance. It made full use of the 24/7 broadband connection to collect transaction data from the jukeboxes and distribute all types of data and content to them.
Craig
Stokes is the Product Marketing Manager for Ecast's coin-op division.
For starters, individual jukeboxes or entire routes could be managed remotely from a Web-based interface. Music additions and jukebox configuration changes were accomplished within minutes or hours, not days. All revenue data came into Ecast in real time and was made available to operators by the next morning. New music releases were now available on a regular weekly schedule, two days after the record labels' street-release dates.
Ecast Director of Network product marketing Ken Feehan
(l)
and CTO Howie Spielman brainstorm about upcoming features
.
Ken brings a strong comsumer focus to his role but says,
"I want to make the jukebox features as attractive as possible
to the patrons. I am focused on raising the average number
of plays and revenue for the jukeboxes."
Today the Ecast broadband network is in its third phase and has just completed a massive data-warehousing project, a coup about which CTO Howie Spielman is quite proud. Spielman explained, "Now I chuckle when I think about phase one and doing batch updates of information although that was really pushing the envelope at the time. It's where some of our competitors are today and I don't envy them the headaches they will encounter getting to where we are! We have made continuous investments in our infrastructure from day one so that we could be there for our customers as their routes grew. Today, we have a reliable, scalable network that I feel very confident about."
It all comes down to performance. If phase two was turbo charged, then phase three, which was completed in January 2007, is operating at warp speed by comparison. For example, weekly music updates are now done one day after street release. Operators can access Web-based revenue reports that are current within 10 minutes and can see real-time status of every jukebox on their routes.
Ecast
operator Ray Carpenter
of Rainbow Novelties in Daly City, Calif.,
said "Every place I put the Ecast box they're happy.
There are never any complaints."
Ray Carpenter of Rainbow Novelties in Daly City, Calif., is a long-time Ecast operator. He bought one of the very first Ecast-powered jukeboxes and has been through the growing pains that come with building a solid broadband network. Today, most of his route, which covers the greater San Francisco Bay Area, is Ecast-powered.
"I got to know the Ecast crew really well in that first phase," quipped Carpenter. "By the second phase all of those issues were gone. Now we're up to the third phase and the revenue report is great. There is no more guesswork; I know exactly what is in the box, right up to the minute and don't waste time going to those hard-to-get-into locations. I just go when the cash box is full."
Carpenter also loves the remote music management feature, as he explained, "I can sit at home or plug in my laptop wherever I am and upgrade every jukebox on my route. Once every month or so I check what music was played and remove what's not getting play. It gets rid of that whole, long process of researching, buying, and installing CDs."
Thinking Outside the Cash Box
In 2006, Ecast unveiled several new innovations, including interactive advertising, the digital video jukebox, and an easy wireless broadband connection.
"We started to think outside the cash box and beyond the music experience," said Taylor. "Broadband makes it possible for us to explore different ways the jukebox can work to engage the patron and bring in revenue."
The obvious place for Ecast to start was with advertising. The company operates the only jukebox-advertising network in the country. National campaigns have included high profile clients such as Heineken, Jeep, McDonalds, and Verizon. Ecast pays its operators a portion of the revenue from every campaign run. As the number of locations and advertisers increases, so will the operators' share.
"At first, operators were skeptical, claiming that advertising would get in the way of music play," observed Steven Kellam, Vice President of Network Sales.
However, even the most skeptical were soon believers. The success of the Ecast campaigns indicate how engaged patrons are with advertising while they're involved in the music selection experience. The recent DoubleClick upgrade to the advertising platform makes it possible for Ecast to deliver ads based on such specific data as time of day, zip code, level, and type of music playing. Delivered with such exactness, advertising can actually become part of the jukebox entertainment experience.
"The operator's number one concern has always been cash flow but that's based on the cash box," added Kellam. "Ecast advertising gives them a new revenue stream that is effortless to achieve. It just appears as a credit on the invoice."
Ecast's pioneering efforts in its advertising campaigns are not going unnoticed. In January Ecast received the AlwaysOn Media Award for Top 100 Private Company. The award, recognizing Ecast's leadership in emerging advertising technology, was presented at an event showcasing top innovative private companies that are changing the way media is created, distributed, and consumed.
See Music
At the 2006 Amusement and Music Operators Association (AMOA) International Expo, Ecast debuted its video jukebox. Those initial video capabilities were rolled out to 10 locations on a trial basis and since then Ecast has been collecting feedback from the locations, their operators, and their customers.
Ecast has also hired video and digital media veteran Seth Cohen as the Video Product Manager charged with focusing on the video jukebox and its capabilities. It is his job to ensure that when Ecast officially releases its video jukebox, it will provide patrons the integrated experience necessary to drive revenue.
"Video is a natural extension of the interactive, touch screen jukebox," said Taylor. "We're dedicated to getting out to the market and are fine tuning it to make sure that when it does, it will provide the utmost value to our operators, their locations and customers."
It Pays to Be Connected
Bruce Guerra, Director of Operations, is passionate about his job, which is taking care of customers. Bruce oversees a team of 21 dedicated staff who do everything from fielding calls in their advanced 24/7 tech support center and making certain that operators get timely shipments of equipment to coordinating the installation process in hundreds of locations every month.
Guerra, a live wire even on his slow days, gets really energized when he talks about Ecast and its relationship with operators. "We give them options for efficient, cost-effective ways to run their routes," he said. "Just take a look at the wireless modem and our connectivity plans!"
Guerra is referring in part to Easy Connect Wireless Broadband, which was launched in 2006. The wireless modem has been a big help to operators, eliminating the need to wait for contractors, run phone lines, or make repeated trips to a location.
"With a location's address we can quickly check to see the availability of wireless coverage in that area," Guerra noted. "We overnight a wireless unit to the operator and he's literally up and running the next day."
Ecast also provides a range of broadband connections: DSL, cable, satellite, and wireless. "Since we already have the location's address we can let the operator know what services are available. The operator decides what is most cost-effective for him. Freedom of choice, baby!"
Ecast recently solidified a deal with AT&T that creates a DSL connectivity package with standardized pricing. Ecast is subsidizing the already discounted rate of $39.95 a month by 50 percent, making the total cost to the operator just $19.97.
"Oh. And one more thing," chimed in Guerra. "We save the operator a minimum of 50 percent of the monthly re-occurring costs and up to $500 of every installation. Man, it pays to be an Ecast operator!"
"It comes back to getting to know your customer's day to day experience," added Taylor. "We wanted to alleviate some tactical pain points and look at additional ways to give them choice along with
value."
Bruce
Guerra (bottom center) and his team
work around the clock 24/7 supporting customer needs.
From left, bottom to top: Raciel Andales, Ryan Umadi,
Mari Diaz, Jennifer Roxas, James Urner, Piankhy Amen,
Anthony Truong, Randy Schmitt, Christopher Guidry,
Terry McBride, Mick Frederick, Edward Drost,
William Price, Hernando Lovings, Shane Case,
Shepard Jones, and Jason Kramer.
The Next Level
Sitting at his desk above Market Street in San Francisco, Taylor looks out onto an open environment where people at their desks are not closed off by cubicles. Jukeboxes and MoJO units are everywhere. Music from every genre and era play at all hours. It's the kind of environment that fosters the flow of ideas and creativity, according to Taylor.
"People want to be connected and jukeboxes naturally bring them together," expounded Taylor. "Take it a step further: Our network connects Ecast jukeboxes in real time and that opens up a whole realm of possibilities for how users can interact through music. We will continue to leverage broadband and interactive technology to create new and exciting features that will transform the market. Keep your eyes on Ecast;.video is just the beginning. We're going to be blowing the doors off the way people view the jukebox!"
For more information, contact Ecast, (866)HI ECAST; Web (www.ecastnetwork.com).
Ecast:
Behind the Music
Behind the Music: Joshua Pollack (l)
and Paul Koehler are completely
united in their goal to improve the
Ecast operator's business by creating
a catalog of essential and approved content.
Joshua
Pollack, Product Manager for Music Content, is intense, a whirlwind of activity
and thought. Pollack grew up playing in bands in his hometown of Los Angeles,
Calif., and later produced albums for bands in Santa Cruz, N.M., where he went
to college. Later he spent formative years in the marketing department for MCA
Records, now Geffen records.
Paul Koehler, Manager of Label Relations and part of the Ecast rights and
licensing team, is more cautious, a quietly persistent force. Koehler is a
steely music industry veteran who started his career promoting music on college
radio. He then went onto Mongo Music, a start-up acquired by Microsoft in 2000,
where it morphed into MSN Music. He later started his own independent music
label, which he still runs today.
Each possesses a background ideal to his Ecast position. Both bring credibility
when dealing with the music labels. Pollack focuses on getting new releases and
the must-have hits. Koehler, by contrast, concentrates on the black art that is
music licensing. He also keeps an eye out for emerging sounds and bands and is
the company's Indie voice.
Their distinctive roles make for interesting conversations that go something
like this:
Pollack: "You gotta clear this! It's going to be huge!"
Koehler: "You're dreaming! It'll never make it... Alright, I'll look into
it."
Despite their different roles and different approaches, they are completely
united in their goal to improve the Ecast operator's business. Koehler and
Pollack agree that the goal is achieved by creating a music catalog of essential
(and approved) content.
Koehler notes, "The jukebox has come full circle and the music labels are
once again using it as a promotional vehicle. With broadband we can offer more
than just music search, we can help people discover new music."
Pollack agrees, "We're willing to feature upcoming taste-making albums all
the while spotlighting hot mainstream artists and tracks. For 50 cents a patron
can try something completely new. The labels are really excited about what we're
doing."
Together their voices chime in, clearly excited
about the topic at hand, and the message is clear: "We refuse to put things
up illegally. As the music companies begin to understand the digital jukebox
medium and our specific copyright issues our insistence on licensing compliance
will benefit Ecast and our operators in the long run. We are forging strong
relationships with our artist, label, and publishing partners that are based on
trust...and as our operators can tell you, relationships are critical and
sometimes all you have."
Core
Competence
At the 2006 AMOA show, Ecast and its partners raised the curtain on what might
be their most surprising innovation to date: the MoJO(tm) core. While Ecast has
been known for its software and network innovations, its half-step into the
hardware game caught many in the industry by surprise.
MoJO(tm)
stands for Manufacturing of Jukeboxes Optimized. Since the beginning, Ecast-powered
devices have been built based upon a specific reference design, basically a
common set of components supported by its software.
Considering that all of Ecast's manufacturer partners (Rock-Ola, NSM-Music, and
View) were using similar components, Ecast thought it made sense to simplify its
engineering support of the various models, save costs by combining the
purchasing power of all their partners, and ultimately produce a very high
quality but cost-effective product that would appeal to operators. The result
was MoJO.
Into this one compact unit, Ecast combined the touch screen, LCD, motherboard,
memory, power supply, and Coin Op Interface Module (COIM). Each manufacturer
decides which models are to be built using MoJO. At press time, Rock-Ola had
released its NSM upgrade kit; NSM had shipped its first Icon wall boxes; and
View had announced that both its Vision wall box and NSM conversion kits would
be MoJO powered.