A warning: those seeking heart-warming anecdotes and mindless cheer to accompany their morning coffee should perhaps save this piece for later in the day. Following our last Hub entry concerning the closing of high end audio's best-known dealer, Sound by Singer, we will take a look at the big picture in the audio industry... and it ain't pretty. Think bartender, not barista.
In past entries of The Hub, we've discussed the origins of the audio industry, some of its giants, and the glory days of the '50's through the '80's. Sad to say, these days are not those days.
Why is that? In addition to the societal factors that have diminished the importance of hi-fi, general economic trends have taken their toll on the high end.
Consider: Since the crash of the sub-prime mortgage market in 2007, 1 in 50 homes in America has gone into foreclosure. Blue chip companies like GM and Chrysler have gone into bankruptcy. Reports of major corporations slashing tens of thousands of jobs have become almost commonplace. Car sales are down to record low levels. Housing sales are almost nonexistent in many major markets. Is it any surprise that sales of big-ticket items like high end audio components are also way down?
The question is not IF sales of new audio gear are down, but HOW MUCH they're down. Oddly enough, coming up with an accurate assessment of the damage to the high end audio marketplace is surprisingly difficult.
At $175 billion/year, the consumer electronics industry constitutes one of the largest and most robust sectors of the economy, as seen in this Consumer Electronics Association press release. However, the CEA also reports that sales of component audio have dropped from $1.3 billion/year in the US five years ago to about $0.9 billion/year today. So: in the US, the audio industry makes up a mere one-half of one percent of the $175 billion consumer electronics marketplace. What the average audiophile would consider high end makes up a fraction of that fraction.
In addition to being just a small crumb from the crust of the consumer electronics pie, the scale of the high end is difficult to ascertain due to the nature of the companies in the industry. Quite a few high end manufacturers with a worldwide reputation and presence have fewer than a dozen employees. Some are larger than that, but many more are even smaller, 2- or 3-man operations. Nearly all audio manufacturers are privately held, and thus are not required to report their sales or staffing. Nearly all are small enough to escape the attention of the Bureau of Labor Statistics or the Bureau of the Census, which compile most of the data regarding American manufacturers.
What about audio retailers? As is true of manufacturers, most dealerships are small and privately owned. Knowing that Best Buy has an astonishing 180,000 employees and exceeds $49 billion in sales tells us less than nothing about Bob's Hi-Fi in Winnibigosh. There's almost no hard data available on independent audio dealers, but few say that they're doing well.
As we become inured to reports of disasters in the economy, individual happenings tend to be forgotten. To refresh our memories, here are some key events in the reshaping of the consumer electronics marketplace. Not all these companies were directly involved in audio, much less high end audio, but are still relevant to our discussion:
January, 2009: Circuit City closes its remaining 567 stores. 34,000 employees lose their jobs.
January, 2009: Bose lays off 1,000 employees, about 10% of its workforce.
April, 2009: Ritz Camera closes 300 stores.
February, 2010: 55-year-old D.C.-area A/V chain MyerEmco closes all seven of its stores.
April, 2010: D & M Holdings shuts down its Snell and Escient brands.
May, 2010: Movie Gallery closes 1,906 Movie Gallery, Hollywood Video and Game Crazy stores. Over 19,000 jobs are lost.
June, 2010: Ken Crane's, a 62-year-old California A/V chain, closes the six stores remaining of what had been a ten store chain. 75 workers lose jobs.
Clearly, times are tough. The best available data indicates sales in the audio industry have fallen off by at least one-third, over the past few years. Many working in the business feel the drop has been far greater than that. One manufacturer puts it very plainly: "a lot of the dealers and manufacturers are zombies. They're dead; they just don't know it yet."
A dealer with decades of experience puts it even more brutally: "The best we can hope for is death, for a lot of the manufacturers and dealers. Maybe then we could get some sensible people who don't hide their heads in the sand."
Our next entry of The Hub will review some of the changes audio dealers and manufacturers are making in order to survive in today's challenging marketplace. We will also talk with folks in the industry who see signs of a turnaround, and are working to bring in a new generation of audiophiles. The question we leave with this time is: "What do we do now?"
You forgot to mention the closing of Tweeter,Etc. Just an FYI
"another words, customer comes in and says, i would like to borrow xyz preamp for n days. here is my credit card. if i decide not to buy it please nullify the transaction."
I read that and couldn't help but ponder that most people don't even know what a preamp is. Actually, most people don't know what the differences between a tuner, amp, integrated amp or a receiver is for that matter.
Some of the people that do know and care, continue the never ending quest for some sort of magical system synergy, only to find themselves with dissatisfaction, ready to toss it back on Agon for some other poor sucker to waste his/her money on. But at least here, there is a chance for people to purchase something better then what's on most shelves these days, for a fraction of the original cost.
If someone happens to wonder what "High-End" is all about, and possibly gain interest, then it would have to go something like this way: The consumer would have to find a dealer who has nicely assembled a system(s) that are comprised of components that work beautifully together- AND get a demonstration that actually sells the benefits of "High-End".
I'm sure most of us would like the bankroll to be able to drop whatever we like on the best available - 1 shot,done,enjoy.
This is all possible but increasingly unrealistic. How do you turn on new customers to something that is becoming less popular? Good Question. *How many people were the non-hobbyist consumers, for decent gear over the decades, able to get anything meaningful out of their systems other then be able to play loud and take up a ton of space? There have been tons of people that filled that part of the audio market, who really didn't know squat about anything, that just wanted a great music system.
*The Hifi card has already been played with this group, which just dumps it in the trash, yard sales it or what have you. Enter the compact systems, PC's, amazing video technology and now they have other things to spend money on. Add in the Teen-based phenomenon, and then we realize they must have iPods/phones, PC's and gaming systems to be cool.
>>>the problem with high end audio is high end audio. consumers are becoming smarter and manufacturers' cling to their outdated economic models<<<
No one is "clinging" to anything, that is an inauspicious way to start off. There are still many exceptional regional dealers that provide extraordinary service, knowledge and support. For hi-end speaker and electronics purchases it is still the very safest and best value way to go--through a carefully selected dealer that has a great reputation, and there are many. When dealers go away, so will a great many of the truly worthwhile brands. Sure there are some bad dealers, there are bad people in every profession, even on-line :o)
>>>"audio components are a commodity just like anything else. people can learn how to set up a stereo system properly without some so-called expert telling them how to do it."<<
That is just plain wrong.
Nobody needs to be 'told what to do' but a 35 year, 25 year expert on system set-up TT set-up,speaker-set up can be invaluable and provide after-purchase support, a helpful ear and counsel that far outweighs what you pay in retail--and by a mile.
The fact that people in these forums still think the HE dealers (as a group) are out there charging too much for their time and service have not paid many visits to good retailers. The idea that dealers and manufacturers are getting rich at consumer expense is entirely fanciful. Many of the great dealers are shirt-off-the-back types and it is frustrating to see so many sincere businesses lumped into your strangled one-way opinion.
Sure, there are some few manufacturers that over-charge, inflate margins too high and laugh about it, but those days are over and manufacturers that do business this way are in trouble--and pretty easy to spot.
And the independents? The sell directs? Those are not always the righteous do gooders and the customers friend as you seem to imply. It's like saying that all magazines that do not accept ads are virtuous and honest, when my experience has been that they can be worse than any ad-magazine, whether net or print could ever be.
In this business, corruption is a private enterprise. Meaning, no supposed direct, or via-dealer manufacturer is any more or less likely to over-charge the consumer. Do you think direct-sale manufacturers don't charge for time, service, exchanges, returns, call backs, two-hour system conversations etc? --Yeah, the ones not in business. An entire additional sales-staff would be required unless the business is tiny, and lets not get me started with what could be wrong there..... And what to do with overseas accounts? Direct there too? Or are dealers ok for that? This would dry up sales, good companies would fold and you would have your dream. DIY speakers at wholesale prices, amps from companies named Dr.Feelgood and wire from someone's closet. Yep, commodity heaven...
>>>some manufacturers are smart. selling direct on the internet. i suspect that is the ultimate solution for the industry--fair prices, fewer dealers and cooperative manufacturers.<<<
Obviously, your experience with the business side of HE is limited or you would not write that. Without face to face regional outreach,seminars, gatherings, events, Aduiophile Society meetings, the local shop that loans cables, amps or CD players; The great retailer that became a friend and got so many into the pleasurable hobby;--- the HE business would not exist today.
If all the great local dealers go away, the Goodwins, Optimal Enchantments, Definitives, Audio Advice and dozens of others, then this truly will become a hobby of commodity. Enjoy your new Bose-wave system or buy direct from a manufacturer that does times tables with his fingers to come up with a retail price. There are some good direct companies, and some not so good and some that take your money and sell you home-depot projects with little jimmy's peanut-butter on the front panel, for a screaming bargain..
Yeah, get rid of all the dealers and all will be well...
no one has dispusted my premise that consumers can learn and provide service for themselves that dealers allegedly supply.
i doubt that the "high end" industry would cease to esist if there were no dealers. small enterprising manufacturers offering quality products who are willing to interface with consumers can be a substitute for an audio retailer. this would entail more "research" nad factual information acquired by buyers.
the big problem with dealers is that the risk of buying a component is not ameliorated by auditioning it in a system which is not congruent with one's home stereo.
if a dealer is willing to "lend" a component for a home audition, that would be a major effort and positive step.
another words, customer comes in and says, i would like to borrow xyz preamp for n days. here is my credit card. if i decide not to buy it please nullify the transaction.
of course this brings up the issue of retail price.
i prefer not to go to deeply into the pros and cons of discounts.
i will make this statement. a dealer should be able to structure his business to offer some discount and still be a viable operation.
i think manufacturers are a more reliable source for info about their products than dealers.
Ballan: your point about the preciousness of music and the need for noble action is spot-on. One of the things that continues to bemuse and baffle me is how something as fundamentally wonderful as the love of music can degenerate into the back-biting, name-calling and flame-throwing that often plagues the audiophile world. Somebody figure THAT one out, willya?
3way: the bang for buck offered by a lot of what audiophiles would think of as "entry level" gear is pretty astonishing, these days. Think of Virtue, Peachtree, a lot of headphones, Music Hall 'tables.... A lot of high end gear handles certain elements of music well, but often neglects the sense of life than most jamboxes can produce. Another mystery to decode.
I agree also that small, skunkwork-y companies may lead the way with human engineering; certainly pre-Meridian Sooloos pioneered that, and look at the things being designed by Holm Acoustics.
Baranyi: you bring up too many good points to explore in depth here, but I will say that I agree that cost: benefit analysis of most gear is worrisome, and that the net and iPod have indeed changed the audio world forever. The trick will be for brick and mortar dealers to learn how to utilize the net to their advantage rather than simply being overwhelmed or defeated by it. Simple to say; tough to execute.
Regarding world-changing technologies like GPS: fascinating, both technologically and socially (Big Brother overtones and all), but it took billions if not trillions of dollars to get to the point where that technology is available for $150. Governments and venture capitalists aren't lining up to pour money into the audio biz. --or if they are, I need to write a business plan!
Most of the comments that precede this have be quite informative. 1. The economics of the industry are adverse to growth. I will attend the RMAF next month and hopefully meet many of you reading this thread. When I see staggering cost of most of the components being sold today, there is no doubt that my hobby has lost touch with the audio enthusiast. The typical pair of monoblock amps start at 20K and the average pair of speakers are about the same. The price/value of the gear has absurdly decreased. The smaller pool of buyers have forced manufacturers to increase pricing to stay in business. This is a business model destined for failure.
2. The internet has changed the audio landscape forever. It would be hard to avoid the fact that Audiogon (or websites like it) have taken advantage of the technology. This has made life more difficult for retailers. It is amazing to me that virtually (pun intended) all the audio equipment purchases that I have made since finding this website have been internet based. I have made the decision that it is better to make a mistake from a sonic perspective on an internet based purchase and have a ready market of buyers for that same item lined-up on the website. Many have come to the same conclusion. Many (not all!)of the home based dealers are audio enthusiasts who want to buy equipment at wholesale for themselves and their friends. There are obviously many notable exceptions but many home based dealers are enthusiasts clothed as dealers. The problem with all of this is that without real dealers the industry will have trouble attracting new flesh to the hobby.
3. The audio magazines have also played a part in this shift. Becoming an organ of their advertisers, these magazines have lost credibility with their readership. I am much more likely to consider the opinion of a known Audiogon member than the magazines. This again shifts me to the internet as a clearinghouse of information. The magazines as well as the industry have lost relevance except on Acura car commercials.
4. Chinese gear has shown us how poor the price/value of the gear we buy. I don't want to get into a political debate especially when many known companies have shifted at least a portion of their manufacturing overseas.
5. Are the components today really much better than those of the 80's and 90's? They are certainly different but are they more satisfying? To me this is one of the major points of discussion. Audio for the most part is a quite mature industry. I have not really seen any major break-through that has made me want to run out and buy newer equipment. The Ipod was certainly a watershed for portable music. I have not seen anything in audio nearly as significant. When I went to my first RMAF 3 years ago, I bought my first $150 GPS to get around. My thought during the entire show was that this GPS was far more interesting than anything that I saw at the show (yet I am going again!) We are dusting off analog turntables and reel to reel machines from 30 years ago because of the incredible sonics of these relics.
5. Ipod, economy. The posts above handled these topics.
The point about the mass market stuff being pretty good is a massive point, which makes it difficult for the high end makers and dealers compete. A buddy of mine who is totally into music and movies has an Onkyo HT receiver from Costco, an old pair of budget Polks, and a Costco bought Sub, streaming itunes and he is very happy. (audio gear @$450.00) He and others have listened to high end gear but did not think it is worth the increased cost. The mass market gear's cost to benefit ratio is much more compelling than the high end stuff - unless you are part of shrinking market where serious audio is still valued, where we do not mind spending more $$ for the incremental added benefits.
Where do we go. As in the past, the high end industry takes what the mass makers create and they try to perfect it. The first cd players left lots to be desired, but companies like CAL, Wadia, etc. helped turned the cd player into something very enjoyable. Before that, Nakamichi, Revox, Tandberg, took the cassette player to a much higher level. The challange going forward - will there be a high end industry to enhance the technology going foward in an environment where technology is evolvoing faster than ever, the resources/expertise demands are increasing, and changing consumer/market trends (small is cool, CE price deflation, portablity, slick user interface, connectivity, etc.)
@Audiogon_bill: I totally agree with dealer service and support. I too, know dealers that go above and beyond to do things that I know they are losing money on. I get disappointed when customers take advantage of a local dealer's time for demonstration, only to go buy from someone else. This is a big problem, and one that customers needs to take some responsibility for. It's just disrespectful to expect a dealer to invest in employees, facility and inventory while buying from someone else, for whatever reason.
I like your comments about the price of 45s vs. MP3s. It brings up something that I think gets overlooked. If you compare the price/performance of a music system in the 60s to today, I think you'll find that today's "consumer" products are much better. For example, I use my iPhone and Etymotic headset when working out and traveling. The sound quality that is produced it's light years ahead of anything available when I was a kid, not to mention that I have music with in my pocket that would take a suitcase of CDs (or a car load of records). This touches on Mrtennis's comments about products being a "commodity". It is true, but the "commodity" is much better than in the past.
I don't want to get off on another rant, so I want to finish by again offering an answer to Audiogon_bill's original question...."what do we do now?"
We, the manufactures, distributors, dealers and customers of this industry need to step up and define it for a new generation. We need to realize that people are the most important thing, and taking care of each other (personally and professionally) is always best for everyone. We need to focus on service and support, and be willing to educate music listeners (and each other) so we can keep evolving to meet new technologies and methods. We need to realize that "product and money" do not define who we are, and that when the day is through, we can all improve the lives we are blessed with.
Music is a precious thing. It's a form of communication and art that has been with us for longer than we can comprehend. Improving the experience and helping people listen, create and perform music should be a noble activity. The world needs more noble action, and we can step forward and define ourselves better.
Mr.: there's nothing better than a good dealer. I know guys who routinely do things that make Abe Lincoln's 10-mile walk to return a penny look like the act of a slacker. In an economy where price is crucial, dealers have to have products and service which will cause buyers to choose them. If it's only based on the best price on commonly-available goods, independent dealers will not survive. They can't.
There is a place in the business for direct sales to the end-user. There is a place for dealer-sold products. The two are not necessarily mutually exclusive.
3way: I partly agree with you. The "fanatics" often base their pricing on giving buddies such a deal, and while that's wonderful and generous, it is not a sustainable business practice. When a guy moves 3 or 4 pieces per month, his per-unit cost on parts is going to be astronomical compared to say, Sony.
Rok: Is it possible, in these days when virtually everyone is familiar with virtual etiquette, that you don't know that it's rude to shout? Please.
I'm glad you love music, I'm glad you're happy with your receiver, but it's not only offensive to categorize the entire industry as a scam, it's patently untrue.
I'm pretty sure that I speak for a majority of A'goners when I say that anytime I encounter the phrase "you people" in the middle of a rant (and a shouted rant, at that) I not only stop listening, I want to make the rant stop. By any means necessary.
I'm also puzzled: if you feel so strongly that all "US PEOPLE" are snake-oil artists, then why are you here?
Ballan: back to your long comment. I couldn't agree with you more about the opportunity presented by iPods, and your experience with pros re: iPod sounds sadly familiar. Once again, we have the True Believers wanting to deal only with other TB's, rather than doing what customers want and working to show them how it can be better.
Guys, this is why the audio biz is drying up. If somebody wants to use a 'pod, help them make it the best it can be--don't fight 'em. As General Douglas MacArthur said: "There is no security; there is only opportunity".
Spring: if you can make it wireless AND cordless: wow. What's this about pie?!?
Ballan, again: can we keep the baked goods out of it, please? ;->
Jay: agreed. We forget how affluent the "golden years" of audio were, compared to now. Remember that a 45 was essentially the same price as an iTune cut...50 years ago.So, that 45 cost about $5 in 2010 money.
Ped: I have no idea what it's about, but I'll take a look. Having heard most of the signs of the "end times" being trumpeted for the last 50 years, I'm a little Apocalypsed out.
Rja: agreed. If it were only #1, then the industry would improve as the economy improves. Thanks to #2, that won't happen unless the industry changes, big time.
We're at a point where the industry has to examine what it's all about. When the bankrupt railroads were rejiggered into Amtrak, it was with the realization that they wern't in the railroad business, but the transportation business, with connections to other modes of transport (trucks, ships, etc.). Similarly: is the audio business just about selling big boxes for the home, or about enabling people to enjoy music, whenever, wherever?
It sounds pedantic and buzzwordy, but there's a huge difference.
THE POROBLEM IS THAT SO MUCH OF SO-CALLED HIGH END AUDIO IS A SCAM! SNAKE OIL! RIP-OFF! DISHONEST!! AND THE AMERICAN CONSUMER KNOWS IT. I LOVE MUSIC HAVE 700 LPs AND 2000 CDs AND THEY SOUND JUST WONDERFUL THRU MY HARMAN KARDON RECEIVER AND POLK LSI 15s. WHEN THE HIGH END IS DEAD THEN REAL AUDIO WILL PROSPER. YOU PEOPLE ARE YOUR OWN WORST ENEMY.
Because the companies that make high end gear tend to be very small they are having a very diffult time adapting. This is a cottage industry run by fanatics, as a result there is lack of scale of economy and the target market is very narrow and getting smaller.
The blame for the shrinking high end market lays clearly on the industry itself. Technology has not adapted to fit the market place (no internet connectivity, the gear is still very large, etc.). Pricing has not kept up with the rest of the CE industry. While, TV, dvd, blue ray etc. prices have gone down, some high end speakers now cost more than a three bedroom house.
Nothing new, no consumer awareness, lack of pricing power/scale, and the average consumer do not recognize the benefit.
the problem with high end audio is high end audio. consumers are becoming smarter and manufacturers' cling to their outdated economic models. dealers are part of the problem. many consumers are as expert or more so than some dealers. hence many savy consumers are buying boxes and do not need the service that dealers offer or propose.
audio components are a commodity just like anything else. people can learn how to set up a stereo system properly without some so-called expert telling them how to do it.
some manufacturers are charging obscene prices but the value is not there.
some manufacturers are smart. selling direct on the internet. i suspect that is the ultimate solution for the industry--fair prices, fewer dealers and cooperative manufacturers.
IMO: One difficulty in analyzing the original topic of this thread is that there are 2 major conditions affecting the "high end". 1. Bad economy. 2. Major paradigm shift in technology, music industry, marketing etc. etc.
Audiogon bill, The last book he published, to not read it is foolish. If I posted anonymously at cafes I could explain otherwise only the foolish or those with iron castanas would elaborate under their moniker from their own computer. What we are witnessing now we will be wishing it only came to that come a few months/years. We are on the brink of.....
as much a cultural evolution away from 'sitting in front of a stereo and listening' as an economic crisis. 'the times they are a changin'.....not enough money..not enough time.
@Springnr: Active speakers with a DAC, and wireless integration. That's not a difficult thing, not difficult at all. I like cake....warm, moist cake. ;)
Swan: good points, and I think many of us travel lighter than we used to. I'm heartened by the level of performance now available from portable digital sources and small speakers, and shudder to think of moving thousands of books and LPs again. Sheesh.
Tvad: largely agreed, although I'm not sure audio has been "primary entertainment" at any time in the last 50 years. Perhaps when Little Orphan Annie and Jack Benny were on the radio....
Loomis: once again, you are CORRECT, sir! It is disheartening to see how big-rig hi-fis have gone from Playboy to Geek Squad in a 30- or 40-year span. Yes, a trade group is needed; however, I personally have watched four or five different audio/high end groups crash and burn due to the same bugaboo: money. Nobody in the industry has enough to support a trade group, except those few mega-companies that don't see any benefit in belonging to a trade group. John Marks even used the analogy of the American Dairy Organization, defining it with his favorite legalese term, "fungible". Anyway, we're trying to get folks together and talk. That's a start.
Ballan: couldn't agree more, and I will come back to your comments as time permits. Sorry to run....
I've just recently been participating here after years of lurking. I semi-retired earlier this year from doing design and engineering of tech systems in the private sector. While I've never "been in the business", I have worked with audio/video dealers and integrators for several years from around the world, and I have a personal obsession with music systems. I'm also the person clients call when things don't work, so I've had my share of experience with audio.
With this said, I want to say something that I hope is taken the right way....
I hear a lot of people in the music/audio business complain about how things have changed, and that there doesn't seem to be a business model that works, but at the same time, I see very few companies and people in the business doing anything about it. Take for example the previous posts. It's easy to reinforce why things are the way they are, but where are the ideas and solutions for moving forward?
People are listening to music more than ever, and iPods and the computer/Internet account for a lot of listening, especial among modern music listeners. All of us here know that the iPod with the "cheap white ear buds" sounds horrible, but the iPod is not the problem. Anyone that has ever heard an iPod using Lossless or uncompressed files streamed digital into a good system will confirm that it can sound wonderful.
With the failure of the cheap ear buds, and low quality speakers systems that are in the market, there is OPPORTUNITY. There is also OPPROTUNITY to educate about why lossless and uncompressed files are better, and demonstrate it. If people are walking around with their cherished iPods, then show them how to make them sound better, and in return you will gain a customer and future relationship.
The reason I bring this up is because most of my clients ask for iTunes and iPod integration, and I myself, really like my iTunes and iPod, but when I ask dealers/integrators to provide a solution, most just roll their eyes and start telling me that iTunes and the iPod doesn't make a good source. BS! This is the type of arrogance and attitude that disconnects dealers from customers. So what if not everyone owns a large vinyl collection, has a turntable, likes the glow of tubes, etc....that doesn't make them less of a music listener. In fact, most the people I know who invest in music systems, are very passionate music listeners, and they not only invest in one room of their home, but several. I'm not just talking about the "rich". I help average people all the time design music systems for their homes, and the reason I'm helping them, is because the dealers in their area won't do it. They don't want to take on smaller projects that are simple.
If you ask an audiophile what time it is, they tell you how to build a watch. Most people don't care about building a watch. They just want the time. Most music listeners don't care about system building and tweaks. They just want music. The just want a quality experience that is simple and reliable. I can tell you, after years of recommending "high end" systems (I despise the term "high end") to my clients, I've learned that the "higher end" the system, the more service and support will be required. It's like selling a hot rod to a soccer mom. Soccer moms don't want hot rods, they want mini vans. A lot of "high end" dealers are so caught up in the technical aspects, that they totally turn off, and away, average everyday music listeners. There will always be some of us geeks and tweaks, but we need to understand that the rest of the world does not care. They want something that is high quality, very simple, consistently relaible AND comes with a person that will service and support them long term.
Audiogon is mostly for us geeks and tweaks. It's a place we can come to learn (and for some, argue) about the technical aspects of music systems, but that's not what most people want. If the industry wants to really shift into a more mainstream and profittable position, then it needs to let go of some attitude and open up to new ways of helping people listen to music....because helping people listen to music is a valuable service.
(No audiophiles, soccer moms, geeks, tweaks and rich people were harmed during the making of this post.)
in the good old golden age of audio, publications like playboy and esquire would regularly publish articles and images of stereo equipment as an integral part of an enviable lifestyle. the industry promoted the intrinsic sex appeal and aesthetics of their gear--i.e. "these speakers will not only look great in your pad but help you fulfill your innermost desires". today's audio advertising, such as it is, is the very antithesis of good marketing--by and large, it's all technical jargon; steak with no sizzle. even the big players like d&m and harman seem kinda clueless as to how to promote their brands; it's no wonder that younger generations flock to ipod and bose products, since, if nothing else, these companies understand how to stress style and image. query whether the audio industry woiuld benefit from an industry-wide group (analogous to the american dairy association)to build a new public consciousness.
A broader cultural change is occurring with a younger generation who may not see buying a home, settling down, etc as their future. They can't depend on an employer for security. They will rent and change jobs more often than ever. Highly mobile workforce who can work anywhere. This might mean that bulky electronics with incredible build quality simply aren't possible to drag along with them. iPods and simple systems rolled up into a laptop or mobile device make more sense. If living in an apt how coul they set up a big system. I venture to say many of us have been there but bought into the American dream of a single family home with space for our gear. Are we dinosaurs too? Fiddling while Rome burns? Probably so.
Loomis: You are correct, sir! Marketing of high end audio is largely preaching to the choir. As audiophiles age, die off or (God forbid!) actually get a system and stick with it, the pool of available customers is drying up. Our next entry in The Hub will discuss some alternate approaches to marketing which will attempt to take iPodders beyond earbuds and introduce regular ol' music-lovers to high quality music reproduction in the home.
Mainstream advertising in magazines or on television is prohibitively expensive for 99% of all audio manufacturers, and there is no trade organization geared to the general promotion of high end audio. Basically, guerilla marketing aided by and utilizing the net is the only real option for the industry to gain broader exposure.
what strikes me is that what remains of the high end audio industry has done very little to broaden its mainstream appeal--in contrast to say, the wine or auto industries, virtually all audio advertising and/or writing (home theater excepted) is confined to a few relatively esoteric publications. i'd think that more consumers would join the fold if they could be stimulated by minstream media--say a component review section in usa today. or a reality show (in hd) about guys traveling the country to expose the coolest systems.
Ballan: You may be right. "High end" may be somewhat alienating. The term is used in all consumer product groups, and does convey a whiff of snootiness. We have sports cars--maybe it should be "sports stereo"!
Pedrillo: Does this have to do with aliens? 'Cause I've often thought that audiophiles were a totally different species than mere Earthlings....;->
Music: Agreed, and we'll get into some of the new options in our next installment.
Part of it is the downturn in the economy but this is magnified by changes in technology, a shift in how people consume music and the more effective marketing strategy that has accompanied that shift. I see a wide variety of people still consuming music but they do so via a pair of earbuds and a very portable source. The marketing consists of selling people individual songs where the price is small and more importantly reducing the space necessary to listen to music of your choice. That plus the competition from big box stores is pretty much the death knell for most of high end audio. Many high end stores sold not only speakers and amplifiers but also televisions and the number of tv sales plus small unobstrusive 5 channel speaker systms far outstripped the number of amplifier and high end speakers. The problem was that it is impossible to compete with the big box stores in that arena. Space, or rather the lack of it, makes the newer technology systems more and more attractive. You can hang your TV on the wall and take up virtually no space, your portable music player and earbuds take up next to no space. It is not just music but rather music listening has merely been fit into the new paradigm. People have also greatly reduced the number of books they buy - buy it on an electronic reader and you do not need a wall of bookshelves to keep a collection. This is coming from someone who has walls of books, still purchases CDs, and does not own a portable music player so I obviously like the old ways. I do not believe that "hi end" audio will go away completely, but it will likely not make a big comeback.
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