Karaoke machines can be used in public spaces (such as bars) or private homes. Home-use karaoke machines are especially popular for use during parties or holiday celebrations. Karaoke machines are also popular with organizations that host group events; youth group meetings, summer camps, religious retreats, and corporate events are all popular settings for karaoke.

Karaoke is a Japanese word which is a contraction of two other words: kara, meaning 'open,' and oke, short for okesutora, which means orchestra. Karaoke, therefore, means 'empty orchestra.' The name accurately describes the basic premise and the appeal of karaoke. This is a type of entertainment in which a singer (nearly always an amateur) sings along to a CD, DVD, tape, or MP3 of music without lead vocals. The amateur singer provides the voice; the karaoke track provides the orchestration.

The quality (and usually the cost) of a karaoke machine depends largely on its intended use. If a karaoke machine is designed to be used by children at home, it will naturally be much more limited and much less durable than a karaoke machine designed for use in a karaoke bar. Professional machines are equipped to play thousands of songs and are meant to withstand hours of nightly use.

Some karaoke machines come equipped with microphones (often cordless) and monitors. These monitors display song lyrics so that the karaoke performer can easily sing along. When purchasing your karaoke machine, consider its ability to 'reserve' songs, as well. Professional karaoke machines can often reserve dozens or even hundreds of songs in advance.