How Big Is Online Karaoke?

“The whole world is drunk and we’re just the cocktail of the moment. Someday soon, the world will wake up, down two aspirin with a glass of tomato juice, and wonder what the hell all the fuss was about.” — Dean Martin, in The Rat Pack.

That’s perhaps the most appropriate description of what is going on in the online karaoke space. In less than a month we have seen two start-ups throw their hats in the ring. Bix, which we wrote about a few days ago, and now SingShot, a San Francisco-based start-up is offering all budding Taylor Hicks’ to find fame and fortune.

The company offers a cross platform, cross-browser tool that uses Adobe Systems’ Flash technology. The tool allows users to “record their own personal versions to backing music and lyrics from the service, and share them with friends, family and the rest of the web.” Others can listen, rate and comment on the recordings ala, Simon Cowell. Mike has all the details.

Unlike most new online services, SingShot is not free. After free 2 weeks, SingShot charges a $9.95 monthly plan, but prices fall to $7.95-per-month if you sign up for a quarterly plan, and a $4.95-per-month for an annual billing plan.

Thinking about revenues – that’s a good thing, but the biggest question is how will the company compete with deep pocketed rivals such as Fox Interactive Media’s kSolo. FIM plans to use the kSolo service in conjunction with other FIM properties such as MySpace and American Idol. FIM can also offer the service for free, and pose challenges to SingShot.

“While MySpace is definitely the big dog of the social networking sites, there are a lot of other great sites to work with on the web,” says Ranah Edelin, founder of the company. Edelin used to work for Listen/Rhapsody and claims that partnerships worked for that company, and similar strategy would work for SingShot as well.

Edelin thinks because his service has a lot more features than kSolo, he can win against kSolo/MySpace combination. Maybe for a while, because in the end “I also think that the opportunity is bigger than just “online karaoke” because with the user ratings and comments, the site really becomes an online talent platform, thus broadening the scope of potential offerings (a la American Idol.)”

Even if the service does manage to overcome those challenges, the big question is will they sing? Your thoughts people?