KARAOKE BUSINESS MODEL
THE POPULARITY OF KARAOKE IS ON THE RISE!
The karaoke business has continued to grow rapidly in recent years in a variety of ways, in pubs, clubs, restaurants and more recently in private karaoke rooms. It is forecast to triple in growth in the next few years.
The Global Karaoke Market will reach USD 5,733.77 million by 2024. (See link: Karaoke Market Research Report)
The 2020 COVID pandemic has created a focus on private karaoke rooms that are used by exclusive groups of people. The rooms have limited capacity and are booked hourly, they can therefore be controlled in ways that keep guests safe. Karaoke rooms can be cleaned regularly after each hourly session and guests can be easily registered and contacted.
WHY ARE PRIVATE KARAOKE ROOMS BECOMING SO POPULAR?
In Asia, private karaoke rooms have been the most popular type of karaoke venue for decades. These rooms are usually small or medium sized and of unique design and comfort, that create an intimate private experience for small groups of people, and come complete with self-operating karaoke systems. The rooms are rented on an hourly basis.
These type of venues are dedicated businesses, some with multiple floors providing a variety of amenities including food and drink services, merchandising etc. An extreme example of this type of venue is Joysound in Japan who have more than 2000 private karaoke rooms in Tokyo alone! However, hotels, bars, cruise ships etc also offer private karaoke rooms. These rooms are being seen in more and more places.
The growing trend of private karaoke room venues that have been successfully established in Europe are KaraokeBox and Lucky Voice in the U.K. BAM karaoke in France and Spain and Duke of Tokyo in Holland.
Joysound have more than 2000 private karaoke rooms in Tokyo alone!
A venue of Joysound Tokyo
Most rooms are pre-booked
Upsell food & drinks
Self-supporting karaoke rooms
Trendy Private Karaoke Rooms are here to stay!
Private karaoke rooms are becoming ever more popular throughout Europe. The demand for a safe and exclusive environment in venues is growing, as customers seek more social and personal experiences.
The focus of SUNVIG is to meet these demands by offering attractive solutions.
1. Private karaoke rooms - The business model
Private karaoke rooms are a unique way to attract new customers. Perfect for small groups of people to enjoy an exclusive experience in the comfort of their own room.
5 STEPS TO SUCCESS
- Private rooms charge each customer an hourly fee.
- Private karaoke rooms have varying capacities with rooms for groups of 4-6, 6-12 and 12-15 being the most popular.
- Drink sales will increase with the possibility to up-sell to bottle service, food and merchandising.
- A private karaoke room is self-operating and does not require staff supervision, just a standard security camera.
- Private karaoke rooms are hygienic, safe, easily managed and regulated. In COVID times, guests can be easily registered and traced through the required booking system.
Hourly charges for rooms
Most private karaoke rooms charge between €12-€20 per person, per hour. Use our calculator below to get an idea of potential revenues.
Average for turn-key design, decoration, technical installation and karaoke system.
Based on 16 hours weekly. (Without upsell)
Based on 16 hours weekly. (Drinks only)
Singing is a proven feel good experience. Happy customers are returning customers!
Average revenue model of a private karaoke room
2. Suitable venues for private karaoke room
How to profit from a private karaoke room?
Private karaoke rooms will function in many types of venues. Contact SUNVIG and our consultants will advise on a business and revenue model for your venue.
The attraction and experience a private karaoke room offers will enhance a restaurants business offering, especially for pre dinner/post dinner times, and for intimate private parties.
Bar & Club
Private karaoke rooms in bars and clubs are becoming more popular. They offers more variety to the bar and club experience. Empty spaces such as smoking rooms are ideal to turn into a private karaoke rooms.
Karaoke is becoming the popular way to attract more customers in Family Entertainment Centers such as holiday parks, bowling centers, arcade halls, ski centers, cruise liners, etc,
Kids Play Centers
Leisure and Hospitality
In children’s indoor play, activity and trampoline centers, the interactivity of karaoke offers fun and learning for children aged 7-14 years. They can also develop their vocal skills and talents.
3. BENEFITS OF PRIVATE KARAOKE ROOMS & SUNVIG