| From the Where2sing.com forum: Yes, I wasn't suggesting a karaoke disc manufacturer had ads on his website, I was thinking about either branding the karaoke tracks or having advertising as part of the screen. Imagine the video to a track including people drinking Coke, driving BMWs, shopping at Coles. Advertising comes in many forms, also remembering that Google didn't invent the pay-per-click advert model that it uses, rather it allegedly stole it from some another company that had tried to sell it the idea, that company later being bought by Yahoo and thus the reason that Yahoo today has something like 20 million Google shares as part of the court settlement.
In any case, I think the advertising possibilities are not the driver for change in the industry, rather instead the better distribution channel of the Internet spelling the end of the disc era. Does Capital Karaoke have a future as a disc suppler? Probably not, and as a supplier of CAVS units, again probably not a long future. With its current user base, I think it's in a good position to make a business transition to a new model, albeit in with vastly reduced income but also with vastly reduced costs which, together with a worldwide market might bear increased net profits - though this position will also degrade over the coming time. I'd imagine that CAVS will become a blip on the landscape change to digital where karaoke tracks are commoditised, and simply one more from thing to be downloaded from iTunes and run on laptops.
Take away the need for a physical items as a vehicle for music distribution, and you have the ideal platform for a small group of international businesses to dominate. When one finds the answer to supplying tracks free of charge yet making a profit, it will have an unassailable position. You can't get cheaper than free, and more than ever we're getting used to the price of 'free'.
As for backing tracks, I believe you can easily source these via a Google search, thus answering your question. Although there may be some karaoke companies that still use their own musicians to record their own tracks, I'd wonder whether this is a viable business model. As for copyright fees, these are cents per track.
Quote: 'This would seem to imply that a karaoke manufacturer really only buys the backing track, adds a lyric graphic and burns it to disc/uploads it to a download service'. Spot on.
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