Namm 2007 Global report

[toqer]

The ongoing sales decline in the karaoke market reflects
both shifting consumer tastes, and the dynamic of the mass
merchant distribution channel. Three years ago, when fourthquarter
sales of karaoke machines and software failed to
meet the expectations of large retailers (including Wal-Mart,
Target, Best Buy and Costco), their immediate response was
to reduce the number of units they stocked and to move the
karaoke inventory to a less prominent position in the store. Not
surprisingly, sales the following year were also disappointing,
which triggered yet another inventory reduction and
banishment to an even more remote piece of retail real estate.
Barring some abrupt resurgence in the popularity of karaoke
products, this downward spiral is destined to continue for the
near term.

http://www.namm.org/press-room/download/pdfs/MusicUSA2007.pdf

 

[jokerswild]

We've seen this before karaoke is such a rollercoaster nitch type business and with rising piracy among private and commercial entities alike it's no wonder the brick and mortar and big box chains are seeing a decline in sales.

What's amazing is while the retail outlets are screaming losses there still seems to be an aboundance of KJ's and karaoke bars running business as usual.

I think this decline is due more to the availability of music in general via internet channels be they legal or illegal this is what is hurting the retail business.

The real problem isn't declining sales at the retail level it's the stuborness of the karaoke manu's to change the channels in which the choose to distribute product. Sure hardware would still need to be sold via retail stores obviously you can't download a CDG disc player but not true about software and the karaoke music itself... just look at Tricerasoft for example. They have the right idea. The sooner the big boys come out to play the better.

 

[Guest]

Possibly those effects are more towards individuals purchasing their own miniature karaoke machine and CDG's for home and/or party entertainment. Also assuming that they (the consumer) could purchase their own rather than hiring professional entertainment.

I worked a New Years eve party for the same people for atleast 6 years. Last year they purchased a small machine and some discs from Walmart, thinking that they could still entertain a party of over 100. One of the attendee's told me that the party was a flop and many people left way before midnight.

It is possible there is just a decline in DIY.

As long as people have fun with it and get to be on stage for a few minutes, karaoke will always be around. In the 80's when it was still in infancy people said it wouldn't last. With shows like Americas got talent and American Idol around I think they only help it continue.

 

[JoeChartreuse]

Though I would have to say that bar venues seem to be picking up (nothing more fun than performing to a public audience.) I have a theory about the home sales.


If someone sees a show operated from computer, they might go home and, as Caroline stated, try it themselves- sans equipment or disc purchases. They probably already own a computer, so they download MP3s - whether legal or not- and work through their stereos. No purhase at all. Just because what they are doing is both ethically ( pirate MP3s ?) or technically ( through a home stereo? A computer not set up for it?) wrong doesn't mean they do, or care.

 

[jokerswild]

Joe & Caroline

I think you both are just about on point here.... its not that there is a true decline in karaoke as a whole when it comes to bar venues and professional KJ's Its more on the fact that the home user has discovered how to get their karaoke fix for free at home via computer.... where in the past they would have gone out and bought the toys that the retailers sell to people to hook into their home stereos and tv's.

That is truely on a decline... why go out and buy a toy when you can hook your pc up to your tv and a home stereo for free and in most cases they will get the music as Joe said in either legal or illegal manner and he's right most of them don't care if it's legal or not.

This is why the distribution channels for the music at least needs to change if they want to see sales like they did back in the day they need to get with the times. Stop stalling and whining about pirates... start providing downloadable content like tricerasoft does legally... even though this would not and could not possibly solve the pirateing issue (that's always going to be here like it or not) but it would certainly make those that would normally not resort to theft purchase legal music online... like they do with iTunes.

I will say this I don't think this is a direct result of PC use by professional KJ's home users would have found out about this on their own.... by and large however the casual home user is still going to go out to the bars because nothing beats the euphoria of getting up in front of a crowd and singing your guts out...

 

[toqer]

Karaoke is dying because of piracy.

I'm pretty sure a good number of people here on these and other forums pirate. Have I ever pirated? Yes, but not in at least a good 6-7 years. I reformed completely, I wish others would too.

What was the #1 factor in my decision to reform my pirating ways?

These people...

The man in the middle is Toshio Umehara, Owner and Chief bartender at 7 Bamboo. This place has been doing karaoke since the 80's, and the club itself has existed since the 50's. I looked at that little old man and said to myself, "It's not fair that this guy who's been doing this his whole life, probably one of the first karaoke venues here is getting put out by piracy."

I saw a direct connection to the "Trickle down effect" that the RIAA and MPAA like to talk about. It's real, no BS, piracy is like introducing a foriegn predator to an ecosystem, it just completely eats away at the food chain.

I'm open to suggestions here folks. What can we do to at least put a dent in this menace? One thought I had was a peer review and audit system.

Basically it works like this. I apply for membership to this review system. I allow another KJ from my area to inspect my hard drive contents, as well as my originals.

Everyone playing it straight with nothing to hide would probably be the only ones signing up. We could list the status of every karaoke venue in the states with 2 ratings.

Certified - Means someone came out and inspected
Uncertified - Simply means the club hasn't been inspected

I dunno, i'm just tossing ideas out there but at this point I have nothing to lose. I think i'll start looking into a CMS system that would work for this.

 

[Precisionpower]

Toqer,
If there were such a system in place, i know of at least 10 bars in my area that would fail!

Bad pirates!!!! Arrrrrrr!!!!

 

[jokerswild]

That's the problem there are no checks in place and no one can agree on how to go about this. Even if there was such a thing who's going to enforce anything... you, me, toqer. Nah, certifing bars and KJ's isn't going to make or even slow down the problem.

I honestly don't think anything will. However, making it hard or impossible to be legit by the standards the manu's would have us do isn't the answer either if anything it makes people want to pirate all the more because it's easier.

Truely I think an online store like iTunes is the only answer... will it stop piracy... no people will always find a way to get something for nothing. However, it would get the product out to a wider customer base that is willing to pay and will possible slow the tide of pirates.

To that end the manu's would be able to report earnings instead of losses as this Namm report would have people believe and you'd see that karaoke is not on a decline but more likely on a rise.

 

[kayleigh]

Karaoke serves singers, not NAMM. Really! (The Royal) We are careful to buy songs from "reputable" sources I hope we can trust. (Joker, Joe, Toq, please argue, because I'm addressing you! )

We try to fight the good fight. And if we continue, (the Royal) we will win.

(I hope people get my humor. Otherwise, I'm gonna stop posting. )