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There are several possible answers to your "what do Karaoke centers use" question.
1. VideoCD - This contains motion video images with the Karaoke text lines superimposed over the video background. The audio is playing in sync.
2. Karaoke CD+G discs with external video - If a CDG song is made with transparent background and border, some older Karaoke players with "Transparent" output would allow this output to be mixed with a motion video (from a VHS?) signal and the video would appear as the background. MTU's Karaoke Pro workstation can generate Transparent background songs and discs (does not include the motion video).
3. Laser Discs - There are probably some places around that still have the expensive laser discs from the late 1980's. These have superior quality motion video, with the lyrics and music playing in sync.
Karaoke Home Producer - This is a $150 product. It creates songs with the CDG format, but not VideoCD or Laser disc. It is designed to generate solid color backgrounds with the lyrics on top, with the color sweeping the words in sync to the music playing.
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