An interactive karaoke system includes a microphone developing an audio input from at least one karaoke performer; a camera producing a series of video frames including the at least one karaoke performer; and a karaoke processor system including a video environment and a related audio environment for the karaoke performer. The karaoke processor system is coupled to the camera to create extracted images of the at least one karaoke performer from the series of video frames and to composite the extracted images with a background derived from the video environment. The video environment is affected by at least one of a position and a movement of the at least one karaoke performer. A karaoke network includes a local area network, a local karaoke server coupled to the local area network and storing local karaoke content; and a number of karaoke systems coupled to the local area network, each of which can request karaoke content from the local karaoke server.