The Death Of The Independent Karaoke Owhner/Operator?

The Lone Ranger · Post by **The Lone Ranger** » Sun Dec 08, 2013 12:57 pm

I have been noticing a trend of late of large scale karaoke operations taking over venues and pushing smaller independent owner/operators out of long term gigs. I was wondering if other host have been noticing this in their areas?

Post by **wiseguy** » Sun Dec 08, 2013 4:13 pm

There are no large scale karaoke operations anywhere near my area.

mr.dj · Post by **mr.dj** » Mon Dec 09, 2013 7:14 am

I don't know of any large scale operators in my area or any where else.
What ones have you seen and where ?

The Lone Ranger · Post by **The Lone Ranger** » Mon Dec 09, 2013 7:50 am

I'm in California and currently retired, while I was working I never had any problem with any large scale operators. They didn't cost me any business since I focused on a select target group baby boomers and did as many private parties and functions as possible, that is where the real money is in the industry now.

The large scale operators usually contract with the large chain restaurants and bars. They install their own equipment, they hire their own minimum wage hosts handle all the headaches all for on set price. From what I understand on other forums many hosts that want the entertainment industry to be their only source of income are adopting this business model. It is not just karaoke that this model is being applied to but also some kind of triva gaming operation as well.

Currently there are two large scale karaoke operators centered in L.A. and San Diego that are starting to make inroads into my old area the Inland Empire. I have a friend Dennis a single operator who had a long term 16 year gig, at a non chain venue. He was pushed out by one of these large scale operators. He managed to find another gig and they followed him and repeated the process. That was about a year ago and he hasn't work since.

Dennis is a very good host, but he wasn't able to compete with a large scale operation that hired minimum wage help. Not that the help was shabby by any means. This large scale operator is very smart, he canvasses colleges the music departments. He finds young college students who are very good singers and offers them the job. It beats flipping hamburgers. That reminds me of a teacher I had in college, who played the piano at the bar to pay her way through college.

Bigdog · Post by **Bigdog** » Wed Dec 18, 2013 4:09 pm

That would assume they have multiple rigs and proper licenses for all the music.

Do these "hosts" set up the equipment and run the show? I have noticed the majority of singers now aren't too concerned about the sound of the system anymore. My crappy competition is always busy.

If they found someone willing to work for peanuts...why can't you. Just sit at home and rake in the dough. Pay $10 an hour....that's more than a burger flipper....you'll at least make $100 or more in your pocket and you sat in your recliner...$100 is better than nothing....play their game

The Lone Ranger · Post by **The Lone Ranger** » Thu Dec 19, 2013 6:21 am

[quote="Bigdog"]That would assume they have multiple rigs and proper licenses for all the music.

Do these "hosts" set up the equipment and run the show? I have noticed the majority of singers now aren't too concerned about the sound of the system anymore. My crappy competition is always busy.

If they found someone willing to work for peanuts...why can't you. Just sit at home and rake in the dough. Pay $10 an hour....that's more than a burger flipper....you'll at least make $100 or more in your pocket and you sat in your recliner...$100 is better than nothing....play their game[/quote]

From what I have read there are both legal and illegal operators of the multiple rig large scale ventures. One legal one has a two state area and over 40 venues he is providing service to. The kicker is it is not even karaoke it is a gaming service. He used to do karaoke but there is more money in games like trivia and others. He says his profit margin is around $100.00 to 125.00 per night. If you figure two three shows a week times over 40 customers, it adds up to a nice chunk of change, every month.

Of course you would have to raise the money hire people to work for you to maintain the system, and of course replace equipment. This type of operation would have to be run by a very business savvy type of individual. One that is good with computers and other skills. This model is also applied to karaoke.

Actually bigdog the singers of these operations aren't sacrificing any quality, the local place that has one of these services has top notch equipment, there is no reason not to. If you have the capital it is better to put in the best equipment you can. After all if it blows the competition out of the water it is the best form of advertising. Other venues check each other out especially if you are killing them. They want to see what you are doing so they can be up where you are at.

The small individual owner/operator still can find work it is just that he will have to share the shrinking karaoke pie with not only pirates, but also these large scale legal and illegal operations. Also this gaming element is just another way of dividing up an already shrinking entertainment market. Like it or not fewer people want to come out to venues, and home entertainment as far as karaoke private parties are popular. Also home movie theaters are another cut into the entertainment industry. At least as far a commercial people like us are concerned.

P.S. I'm just glad I decided to retire this year. I was working 6 days a week and at the top of my game. I would rather go out on my own steam that to be pushed out by others. Yes things have changed a great deal and will change even more at a faster rate in the future. With advances in technology and other things we cannot not even see.

Bigdog · Post by **Bigdog** » Thu Dec 19, 2013 8:44 am

I've talked to several singers....they go to triva because there have a chance to win a free drink....I personally attended a DJ triva night.....it was so boring I wanted to kill myself.... Probably the same mentality that watches the Price is Right and Wheel of Misfortune.....easily entertained with a bunch of nothing.

Having one of the best karaoke system for miles around....isn't drawing singers like it did years ago. They are more interested in singing to a crowd even if they sound like crap. Sounding terrific to an empty room isn't as exciting.

I started playing a smoking venue after 5 years of nonsmoking.....the singers voices are cracking and rough.....coughing during and after they sing. It's wonderful. They are keeping themselves entertained....that's all they care about....because if they wanted to sound good they wouldn't be smoking...

So what's they answer....I'm playing for money I would have turned down 20 years ago....I never thought that would happen. I thought sound quality would always trump crappy sound....I've been proven wrong.

The Lone Ranger · Post by **The Lone Ranger** » Thu Dec 19, 2013 9:38 am

It's like that Dylan song "The Times They Are A Changin" . I was in the hosting business for over 19 years but it never was my sole source of income. I started when I still had a day job, and when I retired from government service, I had my pension, my wife's income and our investments as well. I have worked for over 55 years and am ready to enjoy myself. I'm very glad I never quit my day job and depended on the entertainment industry as my sole source of income. I did the hosting because I enjoyed it. Now that that phase of my life is over it is time to move on to the next stage.

I don't think you were wrong Bigdog, in the beginning you were right. Times change and things have evolved. The trick is if you can adapt to the changes sort of Economic Darwinism. Historically times move on and tastes change. Just like all forms of entertainment have had their time and cycle so has karaoke. Karaoke will go the way eventually of disco and mechanical bulls. Even bands have diminished in importance due to all of the new visual and digital options never before available to consumers.

Another problem with karaoke is a continually shortening attentions span of the singers. They don't want to wait 4 to 5 hours to sing maybe 2 or three songs. We live in a time of instant access and high internet speeds. Things are very different today, and the change will only speed up in my opinion.

djBe · Post by **djBe** » Wed Feb 05, 2014 5:34 pm

The trick is to develop a rapport with your singers, and to quickly make new singers feel welcome and at home. Personal service really is the only arrow in the quiver when it comes to the little guy versus the corporations. karaoke is no different. I have more trouble from the pirates, guys that have every song known to man ...illegally of course...then their singers come to my shows and even though i have 20,000 legal songs, i don't have such-and-such sound choice track that so-and-so has. and what can i do? I can't afford every SC brick, so again I have to beat the competition with service, and personality. If you are, like me, a proud and legal independent operator... just make sure you have a TV for the crowd, alot of the fly-by-night KJs cant be bothered with that, and it makes a show way more fun...have some books to browse, even if they cant hold everything you got, again, alot of your competitors cant be bothered to make books..it's just "tell me what youwant to sing.."...finally, get you some lights. these new LED based lights are cheap, light, compact and awesome...plug in and forget 'em, they flash to the music and give you a big edge over, yet again, the dicky fly-by-nighters who cant be bothered. Remember, there are inherent disadvantages to chain karaoke operations - turnover of hosts, inexperienced hosts, no real connection to the venue, etc. exploit their weaknesses, promote your strengths....outrock the bastards.