Off key: Staunch external competition will hinder industry performance

Escalating external competition and tepid growth in alcohol expenditure have harmed the performance of the Karaoke Bars industry over the five years to 2017. Consumer spending has assuaged these factors somewhat, as renewed interest in high-end karaoke bars has stimulated consumer interest in urban areas. Nevertheless, the primary drive behind the industry's structural decline has been the continued shift of karaoke fans away from karaoke bars and into the comfort of their own homes. Over the five years to 2022, industry revenue is anticipated to continue its descent, albeit at a slower rate than during the previous five-year period. As a means to counteract the industry's structural decline, karaoke bars are anticipated to more closely focus on their target markets in the years ahead...read more.

Industry Statistics & Market Size
Revenue
$435m
Annual Growth 12-17
-1.2%
Forecast Growth 17-22
Profit
Employment
6,288
Businesses
1,270
Market Share of Companies
There are no companies with a dominant market share in this industry
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Industry Threats & Opportunities

  • Karaoke bars are anticipated to more closely focus on their target markets to counteract declines in demand
  • Competition from video games and cell phone technology has encroached on industry revenue
  • To counteract structural decline, karaoke bars are anticipated to focus more on their target markets
  • Industry Report - Starting a New Business Chapter

    While barriers to entry are low and steady for industry operators, the largest hurdle for new players is securing the capital to set up shop. New operators must have the funds to lease or buy a physical space, purchase equipment and furniture and stock a bar and kitchen. While capital costs can be somewhat alleviated by renting equipment, operators must still secure significant upfront capital to enter this industry.Another significant barrier for new karaoke bars is obtaining applicable business permits. Acquiring a liquor license represents a significant barrier for new entrants, particularly in jurisdictions with many preexisting licensed establishments per capita. Some cities and townships cap the number of liquor licenses that can be issued at any one time. A l...purchase to read more.

    Additional Insights for the Karaoke Bars Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Karaoke Bars Industry are

  • Having a loyal customer base
  • Ability to quickly adopt new technology
  • Must adhere to licensing requirements
  • IBISWorld analysts also discuss how external factors such as External competition and Consumer spending in the Karaoke Bars industry impact industry performance..

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    What is the Karaoke Bars Industry?

    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 can sing along with recorded music (or a music video) using a microphone and public address system.

    Industry Products
  • Alcohol
  • Cover fees, song charges and room rentals
  • Food and nonalcoholic beverages
  • Industry Activities
  • Operating karaoke lounges
  • Serving alcohol
  • Serving food and nonalcoholic beverages
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • External competition
  • Consumer spending
  • Number of adults aged 20 to 64
  • Per capita expenditure on alcohol

  • Current Performance
  • Shift away from karaoke
  • Alcohol consumption trends and downsizing
  • Chart: Revenue Growth

  • Industry Outlook
  • Target market focus
  • Technology lessens the blow
  • Table: Karaoke Bars Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Karaoke Bars Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Professional, Scientific and Technical Services
  • Consumers

  • Key Selling Industries
  • Beef & Pork Wholesaling
  • Beer Wholesaling
  • Egg & Poultry Wholesaling
  • Fish & Seafood Wholesaling
  • Frozen Food Wholesaling
  • Soft Drink, Baked Goods & Other Grocery Wholesaling
  • Wine & Spirits Wholesaling

  • Products & Services
  • Alcohol
  • Cover fees, song charges and room rentals
  • Food and nonalcoholic beverages
  • Chart: Karaoke Bars Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers age 35 to 44
  • Consumers age 55 to 64
  • Consumers age 45 to 54
  • Consumers age 25 to 34
  • Consumers over age 65
  • Consumers under age 25
  • Businesses
  • Chart: Major Market Segmentation for the Karaoke Bars Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Karaoke Bars

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Karaoke Bars Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Karaoke Bars Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Karaoke Bars Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per Capita Expenditure on Alcohol (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Auto-Tune
  • Software that manipulates a voice to become in tune with the other parts of the track.
  • Karaoke
  • The act of singing over a popular music track for entertainment, usually publicly broadcast. As a noun it refers to the machine responsible for such activity.
  • Kj
  • A karaoke jockey who is responsible for playing tracks selected by karaoke participants; they are often responsible for triggering a display with lyrics or video to accompany a tune.
  • Why buy this report?

    The Karaoke Bars industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Karaoke Bars:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Karaoke Bars market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Karaoke Bars, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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