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New Karaoke business

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hhb119fist
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New Karaoke business

Post by hhb119fist »

just found this site, so this is my first post here. My wife and I are looking into starting a new karaoke/DJ buisness. I would appreciate any help I can get from some of the more experienced members here. To start I have had a few ideas and a few questions. I do want to make sure that everything I do is on the up and up, which is where most of my questions come in.

questions:
1. What is your opinion on making the business an LLC?
2. I don't really want to have to carry around CD's and I am under the impression that it is okay to buy a digital system as long as the maker of the drive has the content licensed. Is this the case?
3. as a follow up to question 2, where are good places to get said equipment?
4. I want to be able to record people singing, and be able to make them dvd's of themselves if they are interested, it is my understanding that this is okay to do if I get licensing rights from the company the karaoke music is coming from, and that usually costs a blanket fee, does anyone know about how much this costs?
5. I want a good system, but really don't want to have to spend more than $10k as a startup cost, is that feasible? and what brands of equipment would you recommend?
6. Any thoughts on offering both a dj and karaoke service? what different equipment will i need for strict DJ gigs?

if i think of any more I will post them, and i hope i put this in the right sections


DanG2006
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Post by DanG2006 »

1: not sure
2: As long as you have permission from the manufacturers to use their product on computer you're fine.
3: There are a number of places to get equipment and software to do what you want to do.
4:yes as long as you go about it legally:costs a lot of money though.
5: It's feasible. Not every system that costs a lot of money is the best.
I spent more on my library than my equipment.
6:it will get you more bookings and is a good idea if you want to offer more than just Karaoke.
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wiseguy
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Post by wiseguy »

Welcome to the forum!

1. Since in most areas no business license is necessary I see no need to consider the LLC.

2. There is no such thing as a "content licensed" drive. You are going to have to own the original karaoke disc containing every song on the hard drive.

3. You might look into buying up collections of used CD+G discs from failed karaoke companies and places like ebay. DO NOT buy a pre-loaded hard drive.

4. This will be a hassle. You will need to get permission from the individual karaoke music manufacturers. Not really worth the effort in my opinion.

5. You can build a very good sound system for under 5k (excluding the laptop and hosting software). The music is going to be your largest investment. Best speakers are made by JBL or Yamaha. Amplifiers/Mixers by Crown, Mackie, or Yamaha. Wireless microphones by AKG or Shure. Have a local live sound professional help you put a system together.

6. The vast majority of karaoke hosts also DJ.
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DanG2006
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Post by DanG2006 »

I'd like to speak more on number two. for half of the money you want to outlay on equipment you can get a set of discs that will be licensed for your hard drive. Sound Choice's GEM series is such a set. 6000 of the best unduplicated songs you can get.
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wiseguy
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Post by wiseguy »

DanG2006 wrote:I'd like to speak more on number two. for half of the money you want to outlay on equipment you can get a set of discs that will be licensed for your hard drive. Sound Choice's GEM series is such a set. 6000 of the best unduplicated songs you can get.
You might want to add that you will never own this set and must sign a contract and pay periodic renewal fees. And while 6000 songs is a good start most professionals have more than twice that many and some of us four times that number.
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hhb119fist
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Post by hhb119fist »

the information I got on legality of pre-loaded drives came from KAPA, it stated that you can buy a pre-loaded drive with licensed content on it, but that you couldn't add content (such as from personal cdg's) to the drive, only could use the content already on it. They also said I should get a copy of the licensing agreement before purchasing, which I would definitely do. Is KAPA incorrect on this?

also, what are some other good karaoke forums? I want to make sure I can get as much information as possible. :D

edit 1:another question, can you get your equipment insured?

edit2: If I buy used cdg's such as off of ebay, can i put that on a hard drive as long as I stay 1:1, and what is the process to get the music companies to sign off on it, can it be done without travelling to them? I live in michigan and dont want to have to drive several states over to use a hard-drive

edit3: how about cd-g authoring software, that seems like it wouldn't be legal as you are using the origional artists music, is that right?
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mnementh
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Post by mnementh »

hhb119fist wrote:the information I got on legality of pre-loaded drives came from KAPA, it stated that you can buy a pre-loaded drive with licensed content on it, but that you couldn't add content (such as from personal cdg's) to the drive, only could use the content already on it. They also said I should get a copy of the licensing agreement before purchasing, which I would definitely do. Is KAPA incorrect on this?
I'm sorry! Are you buying the pre loaded drive or renting?

If you are buying the drive, then IMHO neither KAPA, nor anyone else can tell you what you can and can't put on the drive.

If renting, what does the agreement entail?

Do they provide technical support? Immediate replacement of the drive if it has a fault?

SOunds to me like KAPA are trying to grab you firmly by the crotch and squeeze.

I'd check that "License" very carefully before signing on the dotted line, if I were you.

Sandy
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hhb119fist
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Post by hhb119fist »

KAPA being the Karaoke Anti-Piracy Agency, not the company selling/renting the equipment

from their website

If I buy a hard drive system that has pre-loaded songs, can I legally play these songs?
If the hard drive system has LICENSED content, it is certainly legal to play any of these licensed products. Before you buy any such machine, you should ask to see the licensing rights for the music loaded on the machine. There should be a licensing agreement between each music manufacturer and the company producing the player for all the music loaded on the player. Also, you should demand a copy of the licensing agreement before you order or accept delivery of your machine. Make sure that you have copies of agreements that cover every song on your machine. If you are using a player with illegally copied songs, you are still liable for their presence on your machine. Your machine and its entire library can be confiscated as evidence if there are any illegal songs - effectively putting you out of business.

I assume they are talking about cavs machines, which is what I was looking at, sorry if i was being misleading by saying hard drive.
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wiseguy
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Post by wiseguy »

The KAPA actually no longer exists even though the site is still available. Also don't be too quick to believe that everything you read there is fact.

There are companies, like Ace Karaoke who can legally load a hard drive with songs but be advised that they are very limited to which songs. They cannot load any Sound Choice or Sybersound song tracks nor any Chartbuster released from 2009 to present.

You can get ANYTHING insured.

Dan can tell you more about the audit process.

Forget about authoring your own CD+G song tracks.
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hhb119fist
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Post by hhb119fist »

i had no plans to author my own, just didn't seem legal to me.
what are some good sources to check out on the legality front? KIAA?
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DanG2006
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Post by DanG2006 »

The KIAA is a start. They will tell you that any hard drive without the discs is illegal as heck. The audits were easy. As long as you have every disc to what you have on hard drive then you're all set. I have only 8708 songs on my drive, 6000 being out of the GEM series and yes you are leasing them but they come with a clause that protects you from the lawsuits that are going around the country looking for hard drives that contain illegally obtained tracks. Sound Choice, Pop Hits Monthly and Chartbusters Karaoke have never licensed songs for hard drive use with the exception of their newest products which includes Mp3+G discs (both Pop Hits Monthly and Sound have these) and SD cards which was recently introduced by Chartbusters Karaoke.
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DanG2006
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Post by DanG2006 »

They can do the Audits in person or by skype. I chose the in person route and got to meet Kurt Slep of Sound Choice and Norbit and Debra Stovall of Chartbusters Karaoke. Got audits from both companies and can use their music on my hard drive without the fear of a lawsuit from either of them.
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Bigdog
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Post by Bigdog »

My suggestions are as follows...

Visit all of your potential karaoke competition. See what type of equipment they use. How does it sound?

What do you like about their shows and equipment? What don't you like about their shows and equipment.

From my experience most KJs go into business as cheaply as possible. That is the beginning of the end of their karaoke business. So decide if yoiu want to be equal to them or better than them.

It's not a party and you get paid to play music and drink. It's a business with serious weekly contractual obligations.

Understand that 99.9% of the bar owners are idiots. To them one KJ is a good as the next. Cheaper makes you better in their eyes. But they also get what they pay for.

A bad KJ is a business killer.

Cream rises to the top...you want to be the cream in your area. What will that take as far as an investment. Don't forget it's your reputation on the line. Your reputation is what gets you jobs.
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hhb119fist
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Post by hhb119fist »

bigdog, I know what you mean about business attitude, I have helped out a friend who runs karaoke at a local bar, they got paid $100 plus drinks, but the equipment all belonged to the bar owner so I didn't think that was too bad of a rate. I don't drink so it wasn't very beneficial to me. I was thinking about a 10k budget mostly because most of the things i have seen during my research have listed 5K as an average startup cost. I'm waiting for a reply from chartbusters, sound choice, and sunfly on what it would cost me to get a license to record, guess I'll go from there to see if it would be profitable for me to do as an option (since I have never seen anyone offer that) I've checked out the competition in the area, most of them use cd's with heavily edited books (which i can understand based on the crowd in some cases) but taken to the extreme, imagine advertizing 3000 songs, 90% of them being country songs, but having no garth brooks, alan jackson, tim mcgraw, or shania twain. then there are two that play a lot of local shows that I know for a fact use pirated music, cause i brought my own personal cd collection (cause i have a hard time finding people who have music I want to sing) and had the kj ask me if i just wanted them to "save it to their hard drive so next time I come I can leave the cd's at home", me not knowing anything about piracy at the time said okay...like an idiot. I'm thinking I'm going to be reporting them pretty soon, but I kind of want to wait until shortly before my business is ready so i can offer an alternative. :twisted: the problem I have is that since most people use crappy equipment/pirated music they charge cheap rates, like 100-150 a night, so it will be hard for me to get gigs, since I haven't built up a reputation yet, any suggestions on that.

and sorry for the spaz post there :D
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DanG2006
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Post by DanG2006 »

Both Sound Choice and Chartbuster have report piracy links. Get audited and then report the pirates. Then go in with your audited library and convince the bar owner that it would be cheaper at $200 a night to hire you than to face $1000's of dollars in lawsuits from the big three (SC, CB & PHM). because they can and will name bars in the lawsuits. If named it could effect their liquor license and put them out of business. Bars don't want to hear this but it is true that knowingly hiring illegal KJ's can affect their livelihood.
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