Positive Reviews: The Multi-scenario KTV System Industry Enters a Golden Development Period, with Technology, Demand, and Policies Jointly Building a New Growth Ecosystem
The multi-scenario KTV system industry is standing at the triple juncture of “technological innovation + demand upgrading + policy regulation”. From the analysis of report data and trends, its development potential and industry value have gradually emerged, making it an important growth pole in the cultural and entertainment consumption field.
I. Market Scale and Scenario Expansion: From “Single Dependence” to “Multi-polar Drive”, with Sustained Release of Growth Momentum
The report shows that the industry’s market scale reached 1.45 billion yuan in 2024 and is expected to exceed 3 billion yuan in 2028, with a compound annual growth rate of over 20%. The core driving force for this growth comes from the diversified breakthroughs in scenarios – the proportion of traditional commercial KTVs continues to decline, while new scenarios such as in-vehicle, outdoor, and home use are rising rapidly. Take the in-vehicle scenario as an example. Its scale was only 50 million yuan in 2021, reached 340 million yuan in 2024, and is expected to increase to 1.1 billion yuan in 2028, becoming the largest growth pole. The outdoor scenario relies on emerging leisure activities such as camping and cultural tourism, and its scale will reach 580 million yuan in 2028. This multi-polar ecosystem of “commercial + home + in-vehicle + outdoor” has completely broken the traditional single model of KTV relying on offline KTVs. It not only broadens the user reach scenarios (such as in-vehicle KTV during commuting and outdoor KTV during camping) but also enhances user stickiness through high-frequency and fragmented usage scenarios, injecting long-term growth momentum into the industry.
II. Technological Empowerment: The Integration of AI and Cloud-Network Reconstructs the Boundaries of Experience, Driving Both “Quality” and “Quantity” Improvements in the Industry
Technology is the core engine for the industry’s breakthrough. The report points out that AI has empowered the entire process of KTV from “search – sing – share”: it intelligently recommends songs before singing, provides real-time pitch correction and generates personalized MVs during singing, and forms a closed loop through social sharing after singing. This technological upgrade not only lowers the threshold for user participation (even users with “poor pitch” can enjoy a high-quality singing experience) but also transforms KTV from “mere entertainment” to a composite scenario of “entertainment + social interaction + creation”. In addition, the industry is transitioning from “hardware dependence” to “cloud-network integration” – the deployment of cloud computing power and storage resources makes terminal devices lightweight (only requiring basic interactive functions), significantly reducing the hardware procurement and maintenance costs for merchants. At the same time, seamless connection between multiple devices is achieved through the 5G network (such as the linkage between home speakers and in-vehicle systems), laying the foundation for chain and standardized expansion. The in-depth application of technology not only enhances the user experience but also optimizes the industry’s operational efficiency, forming a positive cycle of “better experience – more users – more sustainable technology investment”.
III. Policies and Ecosystem: Copyright Regulation and Industrial Chain Improvement “Escort” the Healthy Development of the Industry
The maturity of policies and the industrial chain is the key guarantee for the sustainable development of the industry. On the one hand, the tripartite cooperation among the Ministry of Culture and Tourism, the China Association of Performing Arts, and the China Audio-Video Copyright Association has built a double defense line of “content + copyright”. Through the “two-in-one” copyright licensing mechanism (the China Audio-Video Copyright Association uniformly manages the public performance rights of musical works and the public exhibition rights of music video works), the long-standing problem of copyright transfer in the industry has been solved, which not only protects the rights and interests of creators but also reduces the compliance costs for KTV system providers. On the other hand, the industry has formed a complete industrial chain of “upstream song libraries/hardware – midstream system providers/integrators – downstream multi-scenario users”. Leading enterprises build technological barriers through patent layout (such as AI and intelligent interaction technology) and ecosystem binding (user stickiness and B-side cooperation), while small and medium-sized enterprises compete through differentiated niche scenarios (such as outdoor portable devices). The improvement and clear division of labor in the industrial chain promote the industry’s transformation from “wild growth” to “refined operation”.
IV. User Demand: The Superposition of Entertainment, Social, and Health Values Continuously Releases Consumption Willingness
The upgrading of user demand is the underlying logic for the industry’s growth. The report shows that the number of monthly independent devices used by online KTV users reaches 100 million, with an average daily usage time of 26.5 minutes per device, leading in user stickiness in the online audio field. More importantly, the health value of KTV (physically exercising the heart and lungs, psychologically relieving stress, and socially promoting connection) has been widely recognized, making it transform from “optional entertainment” to “essential consumption”. Coupled with the transformation of the residents’ consumption structure towards “development and enjoyment” (the proportion of cultural and entertainment expenditures was 11.3% in 2024), users’ willingness to pay for high-quality song libraries and membership privileges (such as intelligent pitch correction and special effect interaction) has significantly increased. The growth rate of paid value-added services has exceeded that of hardware and software services, and it is expected to contribute nearly 50% of the revenue in 2028, becoming a new engine for the industry’s growth.
Negative Reviews: The Multi-scenario KTV System Industry Still Needs to Overcome “Growing Pains”, with Challenges and Hidden Concerns Coexisting
Although the industry has a promising future, it still faces multiple challenges during its development, and some potential risks may restrict the growth speed and quality.
I. New Scenario Expansion: Difficulties in Cultivating User Habits and Adapting to Scenarios, and the Commercialization Path Remains to Be Verified
Although the explosive growth of new scenarios such as in-vehicle and outdoor is exciting, the issues of user habits and scenario adaptation still need to be vigilant. Take the in-vehicle scenario as an example. The main usage scenario for users is commuting (1 – 2 hours per day on average), but KTV is a “time-consuming entertainment” (each song takes 3 – 5 minutes), and high-frequency use may be restricted by driving safety (such as the risk of distraction) and the convenience of device interaction (whether the in-vehicle screen operation is smooth). The outdoor scenario faces challenges in device portability (such as speaker battery life and noise resistance) and environmental adaptation (such as network coverage in camping areas and weather effects). In addition, the willingness of users in new scenarios to pay has not been fully verified – home users may prefer “one-time hardware purchase + free basic services”, while in-vehicle users may regard KTV as an “additional function of the in-vehicle entertainment ecosystem”, with a lower payment priority than essential services such as navigation and music. If the core contradiction between “usage frequency – payment conversion” cannot be solved, the growth of new scenarios may face the risk of “inflated scale”.
II. Technological Investment and Cost Pressure: Small and Medium-sized Enterprises Face a “Technological Gap”, and Their Profit Margins Are Squeezed
Technology is the core of industry competition, but high R & D investment has also become a “threshold” for small and medium-sized enterprises. Leading enterprises (such as system providers that have deployed AI and cloud-network technologies) file over 100 patent applications annually and continuously increase their R & D investment. In contrast, small and medium-sized enterprises are restricted by funds and talents and find it difficult to make breakthroughs in key technologies such as AI pitch correction and multi-terminal system integration. They can only rely on hardware sales or basic services, and their profit margins are compressed. In addition, although cloud-network integration reduces hardware costs, the long-term subscription fees for cloud computing power and storage (such as cooperation with Alibaba Cloud and Tencent Cloud) may increase operating costs. The application of new technologies such as large AI models and AR/VR also requires continuous algorithm optimization and data training. If the technology conversion efficiency is insufficient (such as the lower-than-expected user demand for “virtual MV generation”), it may lead to an imbalance between “input – output”.
III. Copyright and Content Competition: The Expansion of Song Libraries Drives Up Costs, and the Risk of Homogenization Increases
Although copyright regulation has solved the compliance problem, the richness of the song library remains the core factor for users’ choice. To attract users, KTV system providers need to continuously expand their song libraries (especially popular new songs and niche vertical songs). Under the “two-in-one” copyright mechanism, the licensing fee for each song needs to be paid to the China Audio-Video Copyright Association and the China Musical Copyright Society. The larger the song library, the higher the copyright cost. If the revenue from users’ paid value-added services (such as membership subscriptions) cannot cover the increasing copyright cost, it may lead to a decline in profits. In addition, the problem of content homogenization in the industry is gradually emerging – the overlap rate of song libraries among leading platforms is high, and there is a lack of differentiated content (such as original songs and user-generated content), which may weaken user stickiness. For example, if users use the KTV services of the same platform in in-vehicle and home scenarios with no differences in song libraries and functions, it may reduce their motivation to migrate across scenarios.
IV. Traditional Commercial Scenarios: Slow Recovery and Transformation Pressure Coexist, Dragging Down the Overall Efficiency of the Industry
Although traditional commercial KTV scenarios (such as offline KTV stores) have transformed through the integration of hardware and software and paid value-added services, the recovery process is slow. The report shows that the scale of the commercial scenario is expected to be only 690 million yuan in 2028, still lower than the 790 million yuan in 2019. Behind this phenomenon is the dual squeeze of the diversification of young users’ entertainment methods (such as scripted murder mystery games and escape rooms diverting customers) and the high operating costs of offline stores (rent and labor). Some KTV stores have tried composite models such as “KTV + light catering” and “KTV + social activities”, but have not yet formed a stable profit model. If the commercial scenario remains sluggish, it may affect the overall resource allocation of the industry (such as a reduction in the system providers’ technological investment in the commercial scenario), thereby restricting the collaborative efficiency of the industrial chain.
Suggestions for Entrepreneurs: Seize the Three Main Lines of “Scenario + Technology + User” and Build Differentiated Advantages in Niche Markets
Facing the industry’s opportunities and challenges, entrepreneurs need to focus on their core capabilities and find breakthroughs in multi-scenario expansion, technological innovation, and user operation.
I. Deeply Cultivate New Scenarios: Design Products Based on “Scenario Characteristics” to Create “Irreplaceability”
New scenarios (in-vehicle, outdoor, and home) are the main growth drivers in the future, but products need to be designed based on scenario characteristics. For example, the in-vehicle scenario can focus on “safe interaction” (such as voice song selection and gesture control) and “fragmented entertainment” (short songs and quick sharing); the outdoor scenario needs to strengthen the “portability” of devices (such as waterproof and long battery life) and “environmental adaptation” (noise-resistant microphones and offline mode); the home scenario can be combined with the smart home ecosystem (such as linkage with smart TVs and speakers) to provide “family social” functions (parent-child duets and family MV competitions). Through scenario customization, the user experience of “this is the only option” can be improved, rather than simply replicating the functions of commercial scenarios.
II. “Precision” in Technological Investment: Focus on “User Pain Points” and Avoid “Technology for the Sake of Technology”
Technological R & D should revolve around users’ core needs rather than blindly pursuing “high – end and advanced” technologies. For example, the AI pitch correction function needs to reduce latency and improve naturalness (avoiding “over – correction” that causes voice distortion); cloud-network integration needs to optimize transmission efficiency (reducing freezing) rather than simply pursuing “lightweight”; AR/VR technology can be applied to outdoor scenarios first (such as virtual stage backgrounds) rather than being fully rolled out. In addition, small and medium-sized enterprises can reduce R & D costs through “technological cooperation” (such as joint development with AI algorithm companies and cloud service providers) or focus on niche technologies (such as dialect song recognition and accompaniment of niche musical instruments) to build differentiated technological barriers.
III. “Two-pronged Approach” to Content and Copyright: Balance Costs and Richness, and Strengthen “Exclusive Content”
The song library is the core for users’ choice, and entrepreneurs need to find a balance between copyright costs and content richness. On the one hand, they can give priority to purchasing “high – popularity + high – singability” songs (such as OSTs of popular TV dramas and short – video hits) to increase user click – through rates; on the other hand, they can explore the “user co – creation” model (such as encouraging users to upload original songs and sharing profits with creators) to reduce copyright costs and increase exclusive content. In addition, they can cooperate with music labels and independent musicians to introduce niche song libraries (such as folk and electronic music) to attract specific user groups and avoid homogeneous competition with leading platforms.
IV. “Refined Operation” of Paid Value – Added Services: From “Functional Privileges” to “Emotional Value” to Improve Users’ Willingness to Pay
The key to paid value – added services is “user value perception”. Entrepreneurs need to break out of the simple logic of “membership = ad – free + pitch correction” and design more emotionally connected rights and interests: for example, in the home scenario, “family membership” can be launched (shared by multiple people and exclusive templates for family MVs); in the in – vehicle scenario, “co – branded membership” can be launched in combination with automobile brands (such as cooperation with new energy vehicle manufacturers to give in – vehicle KTV privileges); in the outdoor scenario, “scenario – themed packages” can be provided (such as exclusive filters and backgrounds for camping and music festivals). At the same time, through data – driven operation (such as analyzing user usage habits and pushing personalized rights and interests), the conversion efficiency can be improved.
V. “Open” Ecosystem Cooperation: Cross – Scenario Linkage and Cross – Industry Cooperation to Expand User Coverage
The industry is transitioning from “closed operation” to an “open ecosystem”, and entrepreneurs need to actively embrace cross – scenario and cross – industry cooperation. For example, cooperate with smart car manufacturers (pre – install KTV systems), co – brand with camping equipment brands (give away outdoor KTV devices), and cooperate with cultural and tourism scenic spots (create “scenic – spot – themed KTV activities”) to expand user reach through ecosystem collaboration. In addition, the sharing link can be connected with social platforms (such as WeChat and Douyin) to transform KTV from a “one – time entertainment” into a “social currency” (such as getting points for sharing MVs on Moments), thereby enhancing user dissemination and stickiness.
Overall, the multi – scenario KTV system industry is at a critical stage of “rapid growth + structural transformation”. Entrepreneurs need to seize the three main lines of technology, scenarios, and users, build differentiated advantages in niche areas, and at the same time be vigilant against potential risks such as new scenario expansion, technological investment, and copyright costs to achieve sustainable development in the industry’s dividends.
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