Karaoke Bars in the US Industry Market Research Report Now Available from IBISWorld

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The Karaoke Bars industry has experienced significant declines in revenue, which has been caused by a decrease in per capita alcohol consumption and lower disposable incomes. The industry will continue to face challenges in the form of increasing alcohol regulations and competition from video games, pirated music and smart phones. To combat these trends, the establishments will use technological advances like auto-tune and touch screens to draw new customers. For these reasons, industry research firm IBISWorld has added a report on the Karaoke Bars in the US industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Revenue decreased as alcohol consumption declined, recessionary woes deepened

Revenue for the Karaoke Bars industry is expected to grow a negligible 0.1% to $373.9 million in 2012. However, this recent projected growth will not do much to offset the severe declines the industry experienced over the five years to 2012. During the period, IBISWorld estimates revenue declined at an annualized rate of 5.0%. Recently, the declines have been exacerbated by declines in consumer spending and changes in alcohol consumption patterns. According to IBISWorld analyst Nima Samadi, the primary impetus behind the industry's long-term decline has been the continued shift of karaoke fans away from karaoke bars and into the safety of their homes where there is an array of video game and internet-based karaoke bar substitutes.

Console based karaoke style video games have grown in popularity due to the fact that they can digitally track a player's performance and provide them with feedback (an example is the Karaoke Revolution series for Xbox, Playstation and Wii). Consumers are also increasingly opting to purchase or pirate karaoke and sing along with tracks on the internet, providing them with another karaoke-type option in lieu of karaoke bars. All of these developments are luring consumers away from the karaoke bar and keeping them in their homes.

In response to the shift away from the karaoke bar, karaoke bar owners are investing in new technology in order to win back old customers and attract new ones. The karaoke bar industry has invested in wireless based technology, including wireless microphones and wireless song request systems. Karaoke systems also now offer touchscreen playlists that are easy to use and backed by an impressive library of new and old tunes, listed digitally and with an on-screen search function.

“Through 2017, the Karaoke Bars industry will continue experiencing competition from in-home karaoke as well as non-industry establishments like bars and concerts,” said Samadi. This competition will push the number of industry establishments down. Nevertheless, in the short term (2012 and 2013), industry revenue is forecast to grow as the economy improves and consumer spending increases. Through 2017, however, industry revenue is forecast to decline.

This industry, in general, consists of small businesses, with few major operators and many being family owned and operated. Census information indicates that just more than 80.0% of establishments are small businesses employing up to nine people and a total of 98.2% employing less than 50 people. Due to the fragmented and small-business nature of this industry, especially in the way it operates, the level of concentration is not expected to change over the next five years. For more information, visit IBISWorld’s Karaoke Bars in the US in the US industry report page.

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IBISWorld industry Report Key Topics

This industry includes bars that offer karaoke entertainment along with food and drinks. Karaoke is a form of interactive entertainment or video game in which amateur singers sing along with recorded music (or a music video) using a microphone and public address system.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
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