I think the short answer is "no". Karaoke fills the void in locations where people generally use music as a background distraction or enjoy watching marignal performers make a fool of themselves. There are still plenty of venues out there that have a clientele who appreciate the talented solo performer. In that light, I think, as a performer, you must bring a unique approach to the stage; something that makes the performance, even if its cover material, something unique to you. It may be the voice, the tonal qualities, or the guitar licks or a combination thereof. You may also have to make yourself "affordable" until you build a following. Look around, it's out there! WB
Yes, I believe karaoke has hurt the live music scene in many areas. It is very unfortunate in my opinion. With the down economy it seems bar owners and managers are opting for cheaper karaoke "entertainment" rather than bringing in a band, especially if they need to charge a cover at the door. I would way rather sit in a small bar listening to an acoustic show over someone hacking a song on a karaoke machine.