Peppercoin, a payments technology company that enables profitable new business models for low-priced digital content and physical goods, and Rowe International, the leading manufacturer of CD and digital downloading jukeboxes, today announced Rowe’s deployment of innovative jukeboxes that accept credit cards as payment to play music. By using the Peppercoin solution to process music purchases, Rowe opens new revenue streams while offering customers flexible payment options.
Rowe’s innovative jukeboxes are among the first to bring the benefits of digital music to the traditional “physical” jukebox experience. By offering digital music instead of conventional CDs, Rowe jukeboxes present consumers with exponentially more choices than a standard jukebox song library-while maintaining the highest sound quality. For example, each Rowe jukebox offers more than 200,000 songs from the largest music labels: EMI Music, Sony BMG Music Entertainment, UMG and Warner Music Group. Currently, Rowe’s 230,000 jukeboxes represent 65 percent of U.S. jukebox market share, and accept in aggregate payments for more than $1 billion annually.
Rowe will use Peppercoin’s Small Transaction Suite to accept credit card transactions at its new jukeboxes. Peppercoin’s hosted small payments service provides consumers with the option to purchase songs with their card of choice on a pay-per-use basis.
“Our digital jukeboxes provide an unparalleled music selection, and now with Peppercoin we offer consumers the most convenient and flexible payment methods. In addition to cash, consumers can use their credit cards in the manner most convenient for them,” said John Margold, Senior Vice President of Sales and Marketing, Rowe International. “We selected Peppercoin’s small payment solution for this important initiative because we found it to be the most cost-effective and forward-thinking service in today’s marketplace. We expect the credit card-enabled jukeboxes to increase both our customer base and our average transaction value.”
Significant Market Opportunity
Consumers are demonstrating a clear and growing preference to use their credit and debit cards for all sizes and types of purchases. In a 2004 study, Ipsos-Insight estimated that roughly 37.5 million US consumers would choose to use their credit and debit cards for transactions below $5. Each year, consumers make more than 354 billion cash transactions of less than $5, representing $1.32 trillion in aggregate revenue. In 2004, credit and debit transactions under $5 totaled $13.5 billion. This presents a significant growth opportunity for the credit and debit card market.
“Rowe International is the number one manufacturer of commercial and home jukeboxes, and our partnership demonstrates Peppercoin’s continued success in facilitating small transactions at both the digital and physical point-of- sale,” said Mark Friedman, President and CEO of Peppercoin. “By helping Rowe increase revenues and reach new customers, our momentum and support of new and pioneering business models in the digital music space grows stronger.”
About AMI Entertainment Network and Rowe International Corp.
AMI Entertainment is a business unit of Rowe International, responsible for its digital jukebox network. Launched last winter, the AMI Entertainment Network hit the ground running, with the content of the four major record groups (EMI Music, Sony BMG Music Entertainment, UMG and Warner Music Group) already in place. AMI also has agreements with the five major music publishers: Sony/ATV, EMI, Warner/Chappell, Universal Music Publishing Group, and BMG (for the BMG and Zomba catalogues), and continues to license new content weekly. The network supports Rowe’s digital Internet-access jukebox line, which includes the full-sized “NiteStar,” compact “Solara” and wall- mounted “StarBrite.”
About Peppercoin, Inc.
Peppercoin enables profitable new business models for low-priced digital content and physical goods. Peppercoin’s small payment products help merchants, banks, and other payments companies build market adoption quickly through a flexible, consumer-friendly approach. Peppercoin integrates easily with existing business models and systems to accelerate revenues and increase profits while dramatically lowering transaction and customer service costs. For more information visit .
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