The death of ultra hiend audio

we really don’t know why these companies  ran aground, and there could be different reasons for each of them, marketing, inability to control costs, poor financial management, any number of things could be at play. It’s also not just the truly high-end manufacturers that have encountered trouble. ARC had to find a white knoght to bail out of financial problems, and although their gear is certainly not cheap, it’s not in the range of the top of the line MBL stuff. 
 

the truth is that all of these companies, even those not selling six figure gear, are chasing a very thin, likely diminishing market. The great majority of people who enjoy listening to music think that people who pay even 10 or $15,000 for an audio component are extravagant, foolish, or just showing off. So there are always going to be winners and losers in the business world, and I’m not sure it’s that much different  in Audio than a lot of other businesses, other than the fact that the demographic shopping at the high end is very thin and for the most part pretty old and exiting the market. I hope both of these companies survive, but creative destruction has always been a part of the business world.

I'm sure there is no single answer, but I think traditional high end audio faces difficult challenges based on generational differences. We baby boomers grew up with big stereo cabinets in our homes, and audio stores on every corner where you could experience high end audio and see what you aspired to own someday.  Our youth was a time when music was at the center of, and was the voice for huge societal changes. Music was front and center-not wallpaper.

I suspect baby boomers have been the backbone of the high end market for some time. The baby boom generation was huge in terms of raw numbers compared to those that came before. Unfortunately, we boomers are old now-more and more of us are trading our multi box systems for harp music, or downsizing our living situation.

In contrast, my kids grew up with ipods and mp3 players and all their music in a device they can carry. Audio stores had largely disappeared, lots of that generation have never actually experienced what we call a high end system. They see headphones and iems, not amps, preamps, 200 pound speakers and endless cables when they shop for music. Consequently, most younger folks don't aspire to complex systems with 10 boxes and miles of cables for what is mostly a solitary pursuit- they want simple and/or portable. There are exceptions, but if high end audio is to thrive it will be forced to adapt to different demands as the generational changing of the guard occurs. You can see some companies starting to grasp this and you see more and more simpler, one or two box solutions, or no box all in one systems. The companies that can adapt to changing consumer tastes will be ok and those that don't will find themselves competing for the business of an ever dwindling group of geezers.     

@treepmeyer +1 

Its hard to know which brands are truly successful without seeing financials. I would start with brands that have stood the test of time without bottoming out financially or selling to big corporate,  which often results in the brand continuing in name only. 

Accuphase, Pass Labs, and Grado Labs come to mind. Burmester, T+A, and Zellaton are German brands that qualify. Audio Note, Kuzma, Air Tight are other examples and there are many more. One common thread is that all these manufacturers have been known for many years-decades-for building high quality, reliable stuff. As far as I know, they've not succumbed to the temptation of VC buyouts. Each of these companies have a loyal following and concentrate on their core business. They must be doing something right.