INDUSTRY

The karaoke bar business is immensely propelling nationwide. The arts,

entertainment and recreation industry includes the karaoke bar establishments that operate
facilities or provide services that enable customers to participate in leisure-time interests.
Through the use of a microphone and karaoke software, amateur singers can participate in
interactive entertainment by singing along to songs that have been recorded or from music
videos. Businesses in this sector typically offer only limited food and alcohol services in an effort
to increase revenue.

Size of the Industry

Karaoke is gaining massive traction as a popular form of arts, entertainment and

recreation industry. The annual ranking of Philippine cities and municipalities developed by the
National Competitiveness Council, it is revealed that Maasin City obtained 20% economic
dynamism as of 2022. In terms of entertainment industry, 4% of the local economy size is the
karaoke business. Also, only 4 active karaoke bar establishments in the locality that earned
approximately P800,000 annual revenue.

Market Growth Rate

Market growth rate is one of the indicators of the business' profitability and
sustainability. The sqtatistics shows that Maasin City has a total population of 87,446 by 2020
census with the eatimated 3% growth rate. This means that larger population in the locality will
also increase the demand of the products and services. Moreover, the estimated annual regular
income of Maasin for the fiscal year of 2022 was P829,747,609.363 with 10% growth rate.

Key Industry Segment

Demographic segmentation is the key industry segment for driving demand in the
market and achieving long-term success. This business type is business to customer, and it is
primarily concerned with the customer's demographic characteristics, including age, education,
gender, occupation, and income. It enables the company to address customers' needs and
wants directly. By making better use of its resources, the company is better able to satisfy
customers' needs and wants.

Driving Forces of the Market

Technology and Innovation

Latest digitally equipped sound technology will be used to play music to enjoy
singing along with lyrics. The development of private karaoke rooms, also known as KTV booths,
is a popular trend in the arts, entertainment and recreation induatry. In these spaces, potential
customers can sing inside the soundproof rooms without disturbing other groups of customers.
Karaoke was perceived as profitable as various innovative music genres became available in
karaoke machines.

Government Policies

As local government regulations have an impact on how the firm operates, the
company will abide by them. Government requirements like a permit to operate, tax credits
(18% amusement tax), and more will be imposed. The company will make sure that the KTV
establishment in the local area complies with all laws and regulations.

Economic Conditions

The business operations will greatly affected by the economic conditions.

Economic factors such as providing employment to the people, population growth in the local
area, and the discretionary income for people to spend on entertainment like KTV. The
economic conditions will determine the potential success and expansion of the business.

Social Changes

Karaoke is an intergral part of the Philippines culture. The KTV bars has been
there for a while, it is starting to come back into fashion with innovative music genre and
unique social experience. Regardless of age, social standing, or gender, the trend is being
followed, and it has turned into an open platform to showcase talent. The business will provide
customers with a relaxing environment, opportunities to reconnect with loved ones, and
unique experiences.

Environmental Factors

The environmental factors is one of the driving forces of the market as it directly
affect the sustainability of the business. Some factors to consider include location, business will
be located wisely and can easily be found by the customers. And also the proper waste
disposal.

Size of the industry in maasin express in peso

Growth rate- population, GDP, money inflow coming inside maasin,