Karaoke has grown from a quirky fad into a part of mainstream popular culture. Still, the industry has been diminishing since 2002, when $200 million in sales were made, to just $40 million in 2008.
A large part of the decline is thought to be attributed to video games. Titles like Singstar, Rock Band and more recent Guitar Hero games all have singing components, generally offering more affordable, convenient and interactive ways to sing than your traditional karaoke bar.
The high cost of licensing and piracy are both seen as a culprits too. “Piracy is 90 percent of the problem, and it’s going to end up being the demise of the karaoke industry as we know it,” said Tom Viveiros, co-founder of the Karaoke Industry Alliance of America to the LA Times. “There are more venues with karaoke nights than we’ve seen in 15 years, but with few exceptions they’re all stealing music.”
