Karaoke Warehouse not singing the blues - Washington Business Journal:

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“Three things – American Idol, American American Idol,” said who along with his brothert Doug, have been in the business for 18 years withtheidr companies, Hilliard-based and AudioStream Karaoke. The uber-popular TV singinhg competition and advances in technology have combined to take karaokw out of bars and into The shift has drivenKaraokw Warehouse’s annual sales to more than $10 million with consistent annua l growth topping 20 percent, Vogt said – even in this economy. “Io think America has more timefor entertainment,” he “People are singing their troublezs away.
” The Vogts started rentinyg equipment and discs in 1991 in a storefront at Carriaged Place on Bethel Road that included six private Japanese-style karaoke where customers could rent and perform on Rick Vogt said the boxesz were popular, but didn’t make the transitio with the companies to Hilliard in 1998, wheres the business focused just on rentals. The brothers decidede in 2002 to start producing theid own discs and createdthe All-Star label. Disc and equipmengt sales – with placement in retail giants suchas , and Toys Us Inc. – now account for 75 percentr of sales.
Doug Vogt said karaoke used to be a seasonalo fad and while the Christmas season remains thesales peak, equipment and discs easil y can be found year-round at most “Retailers are more accepting than the company’s president said. “They have permanentt space for discsand equipment.” CEO Rick Vogt said Best Buy includees karaoke discs and machines in its weeklhy sales circular at least once a There are several facets to the business. All-Sta r is the disc line, AudioStream does the equipment andKaraokse Jukebox, adjacent to their Hilliarc offices, is their retail and rental store. Technology is adding new aspectss to the businessas well, such as Ibacktracks.
com, the company’ss download site, and KaraokeEdge, a karaoke game beingy installed on all All-Star discs. Rick Vogt said the brothersz believe they’re the only disc and equipmenft manufacturer that also has aretail “Karaoke Jukebox is our he said. “We get to talk to real try new things out and getinstantf feedback.” Most of the competitioh is small. The biggest competitor is , which doesn’y license its music to other manufacturers. Karaoke Jukebox does sell Disney, but its own products accoungt for the vast majority ofits stock.
The Vogt s are just two memberws ofthe company’s age-and-taste-diverser music committee, which listena to the radio and studies sales and radio ratings to determinre which songs to bring to All-Star. “It has to be Rick Vogt said. “That’s one reasonm country music is very especiallywith women.” The process begins with The Vogts said they want to capitalizer on Lady Gaga’s success so the three-person licensing department is closing a deal with her publisher, LLC, to karaoke-izs her music.
Sony is just one of almostr 200 publishers the company has connections Those relationships are a key competitive advantage for Karaoke DougVogt said, as licensing is one of the largestt barriers to entry for businesses wanting to starf their own disc line. Once those relationships are though, the business becomes easier. Doug Vogt said most licensesd are three- or five-year dealsz and are easily renewed. When the legal work is takem care of, production begins. Karaoker Warehouse works with independent producers who seek out singereand musicians.