TouchTunes and AMI Entertainment announced on May 6 that they are exploring a potential combination of the two businesses. The companies said they believe that the move will “create new opportunities to enhance the digital jukebox product offering for consumers, venues and operators.” The transaction is currently under regulatory review; financial terms were not disclosed.
“Despite the love that many locations and consumers have for the digital jukebox, bars and restaurants have many alternative music and entertainment solutions now available,” explained TouchTunes CEO Ross Honey. “We believe that the best way to continue to make digital jukeboxes attractive to venues and consumers is by investing to create new types of jukebox features and functionality which will enhance the operator, location and consumer experience. The combination of TouchTunes and AMI will create efficiencies that will enable more investment and innovation, which will drive location growth and engage a new generation of jukebox users.”
Added Mike Maas, CEO of AMI: “AMI and TouchTunes each have unique strengths and capabilities. Combining the two companies will enable the best of each across every jukebox. Both networks will be supported for the foreseeable future to ensure operators can get the best service and the full return on their existing investment.”
Honey also noted that the combination will help address cost increases that both companies are experiencing. “The industry is experiencing cost pressures from suppliers, manufacturers, shippers and licensors. The combination of TouchTunes and AMI will enable more effective negotiations with these entities, containing costs for operators, venues and consumers.”
The companies are found online at www.touchtunes.com and www.amientertainment.com.