CNBC AI News, May 24 – China’s once-thriving karaoke industry faces an existential crisis as shifting consumer preferences and evolving entertainment landscapes reshape leisure markets. Over 70,000 KTV venues have shuttered nationwide since 2015, according to domestic media reports, with younger generations increasingly abandoning the nostalgic pastime for newer alternatives.
A recent viral social media survey comparing mainstream recreational activities in China—tracking participation rates from three years ago versus today—has ignited fierce debate. The China Leisure Development Report (2023-2024) reveals a staggering 87% year-on-year decline in KTV engagement, far outpacing downturns in nightclubs (down 35%) and bars (down 28%). This seismic shift underscores the sector’s struggle to remain relevant in an era dominated by immersive experiences like scripted murder mystery games and escape rooms.
Once a cultural mainstay for social gatherings and family bonding in the early 2000s, KTVs now evoke sepia-toned memories of millennial-era pop anthems by artists like Jay Chou and Stefanie Sun blaring through soundproofed rooms. Analysts attribute the sector’s decline to its failure to modernize offerings for Gen Z consumers, who favor tech-integrated, niche experiences over traditional sing-along formulas.
“KTVs built their empire on scarcity—when access to private singing spaces felt novel,” said Li Wen, a Shanghai-based entertainment industry analyst. “Today’s youth demand multisensory stimulation and social media-worthy moments, which legacy venues struggle to provide.”
While the industry’s Japanese-origin name—combining “kara” (空, meaning “empty” in Japanese) and “oke” (orchestra)—once symbolized cutting-edge leisure, many operators now face brutal calculations. Market leaders like PartyWorld and Cashbox have pivoted to hybrid models incorporating AR lyric displays and AI vocal scoring, but these innovations have yet to reverse the sector’s downward trajectory.
As urban millennials nostalgically reminisce about belting out Mandopop classics, the broader entertainment sector watches closely. The KTV crisis serves as a cautionary tale for traditional leisure businesses in China’s $1.2 trillion experience economy—where adaptability may determine who survives the next cultural revolution.
Original article, Author: Tobias. If you wish to reprint this article, please indicate the source:https://aicnbc.com/866.html
