Headphones To Lure the Next Generation

Great article in Dealerscope on how custom audio shops can prepare for the future by focusing more on headphone sales. Money quote:

"There are no new audiophiles entering our community any more," Abplanalp said. "For young people experiencing music, the art of building a stereo has lost its cachet. So selling headphones is a very important part of introducing music lovers to different performance levels…"

The article also notes that Monster's Dr. Dre Beats line is a key sales driver for this demographic, but oddly undersells the ability to properly demo in-ear headphones in-store.

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Kaleidescape Ships Blu-ray Server (Sort of)

Server-1u-01 First a bit of background: Kaleidescape is a high end media server vendor. They make boxes you have a custom installer put in one spot, which connect over a wired network to smaller boxes your installer connects to each TV and projector in your home. You – or your installer – copies all your DVDs onto the big box, and then you can watch all your movies anywhere in your home. Basically, it's Sonos for movies for rich people. How rich? Kaleidescape was actually the reason I instituted a policy not to review anything I could not reasonably afford. Years ago Kaleidescape offered me a full setup to review; I refused because I didn't want to take out an insurance policy on a loaner, and I didn't want to take out a second mortgage on the chance that I couldn't bear to return it. A full Kaleidescape system in those days easily topped $50,000. Prices have come way down, but most systems will still end up in the $20,000 range with installation.

I had good reason to fear wanting to keep a system. I have used Kaleidescape at trade shows and have been consistently impressed. It is fully babysitter proof and requires no technical knowledge to use whatsoever. As all the movies are ripped to the system's hard drive(s), movies start instantly. However, its one downfall is that until now it only supported DVDs, not Blu-ray discs. As many installations include equally expensive HD projectors, this is a real problem.

Kaleidescape's first stab at the problem was adding Blu-ray support to the M500 player – one of the small boxes you'd have near your TV. That certainly enables you to play a Blu-ray disc (both at that TV or anywhere else in the house), but it still requires physically handling the disc every time you want to watch a movie and it is not all that much better than a regular Blu-ray player from Sony or Samsung. The whole point of Kaleidescape is access to any movie you own instantly thoughout the house.

Kaleidescape is now selling a partial solution to the problem: you can rip Blu-ray discs to the hard drive in the server, and it will play off the server (which means you can include it compilation video playlists). However, to appease the copyright gods, Kaleidescape still has to physically verify that you own the Blu-ray disc before playing any of its sweet 1080p content. To do so, you'll need a media vault ($1500), the ugly box pictured on the right, Kvault-10-01 which can hold up to 100 Blu-ray discs. You can add as many of these as you like, but each needs to be connected to an M-class player (like the M500). In short, Kaleidescape now allows Blu-rays to be treated just like DVDs, only there is a lot more complexity and kludginess involved. It's better than nothing, but it has to seriously pain Kaleidescape's management and engineering staff who have made simplicity and elegance a core part of the product's value proposition.

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Thiel Goes Amazon – Growth, or Desperation?

Thiel  HomeTheaterREview (no relation) is reporting that high end speaker maker Thiel will stop selling exclusively through independent retailers and begin offering some of its entry level products on amazon.com (story here) and indeed, a quick amazon search for Thiel products shows in-walls from $900, and standalone speakers ranging from $1200 – $3,000. Founder Jim Thiel passed away in September, so I'm sure there are some who are saying that Jim must have said, "not over my dead body" and the company waited until that was literally true before making the move. I never interviewed Mr. Thiel, so I don't know what his attitudes or business plans were. However, the company's basic position is pretty simple: the market for high end speakers has always been limited, but audio enthusiasts are aging, the independent dealer channel is shriveling, the recession is tanking custom installers, and competitors are moving design and production to China to lower costs. It would appear that Thiel is suffering from the same maladies as Snell.  

The move to a mainstream, online distribution channel like amazon is definitely risky, especially since Thiel didn't take the obvious step of first segmenting its products into distinct lines for the different channels. Thiel will have to sell enough volume on amazon to offset the fallout from angry independent dealers and custom installers. It's not clear if this is a desperation move — i.e., Thiel's sales are down enough that anything sold online is a plus — or if this is an attempt to position the company for growth as traditional channels are expected to continue shrinking over time, and the online channel continues to grow. In any case, simply sticking products from a relatively obscure brand up on amazon will not result in sales; Thiel will need to advertise and promote the products through the new channel. I haven't seen any new Thiel ads or promotions, have you?

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RIP Snell, Escient

Not sure where I was when this crossed the wire back in April, but I was saddened – but not surprised – to learn that D&M Holdings shut down both Snell and Escient

Snell was a high end speaker brand without enough brand recognition. Selling $30,000 speakers in a recession is extremely hard. Selling $30,000 speakers from a brand that only involved enthusiasts have heard of is basically impossible, no matter how terrific they measure and sound (Snell was famous for rigorously achieving ridiculously flat frequency measurements). 

I suspect that the recession did in Escient, which made well regarded music servers, as well. Sure, some of Escient's functionality made its way into Windows and iTunes over the years, but the general collapse of the custom installation business was the bigger culprit. That and the rise of Sonos, which is dead simple for regular consumers to install, and considerably less expensive than any custom solution.

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New Onkyo Receivers Come with HDMI 1.4 and Buyer’s Remorse

The problem with 3DTV – aside from the glasses and the nausea and the total lack of content – is that you need to buy an entirely new equipment chain. It is not enough to replace your TV with a 3D capable set, you will also need a 3D-capable Blu-ray player, and – much to the delight of Monster Cable – you may actually need to upgrade your HDMI cables to handle the increased signal bandwidth. The typical HDMI connection in most devices today is 1.3b, but you'll need to upgrade to HDMI 1.4a for 3D. 

This has implications for audio as well. If you want to get the best audio out of your 3D content, you'll need an A/V receiver (or processor and separate amplifier) to process the compressed digital signal, amplify it, and pass it along to your speakers. If your receiver – like nearly all on the market today – does not have HDMI 1.4a inputs, you will need to run a second digital audio cable from your Blu-ray player to the receiver – assuming that your Blu-ray player can simultaneously output video over HDMI and audio over coaxial or Toslink outputs. It probably can. Probably. 

There are also an increasing number of 2D devices that connect to your television via HDMI, and most TVs and receivers have a paucity of HDMI inputs of any kind. I have 15 devices with HDMI outputs, including game consoles, digital set top boxes, digital camcorders and several smartphones. 

With that background it is entirely unsurprising that electronics manufacturers are rushing to update their lines with new A/V receivers that have multiple HDMI 1.4a inputs. For example, Onkyo just announced three new receivers with 7 HDMI 1.4a inputs a piece, including the 9.2 channel TX-NR1008. Of course, this comes literally three days after I bought Onkyo's current generation receiver with 7 HDMI 1.3 inputs, the TX-NR3007 (pictured)TX-NR3007(B)MDC_FR. Now, I knew that updated versions were bound to be introduced shortly, and, having sent back all my review units, I needed a new receiver now, not in June …but I still feel a twinge of regret. 

Note: the TX-NR1008 is technically a replacement for the TX-NR1007, not the NR3007 which I purchased. I'm sure the TX-NR3008 will be along shortly, along with a new TX-NR5008 flagship, which is bound to have 8 HDMI 1.4a inputs.  

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The New HT Sales Environment

HomeTheaterReview – not HomeTheaterVIEW, which is what you're reading right now – has an interesting take on how the home theater sales environment has changed since the recession, and how to cope. It's partly a pitch for online advertising, partly a manifesto. Oddly enough, I agree with the advertising part, but he's missing a few pieces in the manifesto:

  • Are boutique bricks-and-mortar A/V stores relevant in an amazon.com age? (Short answer: only if they're truly boutiques.)
  • Is seated home audio relevant in an iPod/dock age? (While there are exceptions — witness the rebirth of vinyl — generally speaking the answer here is, "not for anyone younger than 35.") 
  • Are editorial-driven magazines (in print or online) relevant in an age of semi-pro blogs and forums? (If my friends writing for these publications are any indication, probably not.)

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Lessons From Panasonic’s Plasma Day

Tc-p50x1 On Tuesday, I, along with a handful of tech journalists, was invited to attend a briefing by Panasonic in New York to show off their latest line of plasma televisions. The emphasis was on the technical capabilities of Panasonic's plasma technology relative to the latest LCD with LED backlighting.  Some things I learned:

  1. Never have a Japanese engineer who doesn't speak fluent English give a marketing presentation to journalists. Yes, there was a lot of technical detail included, but the fundamental reason Panasonic was doing the briefing was to spin the technical detail, otherwise they would have just provided a white paper. While the presentation itself was pretty good, it was agonizingly slow going in parts, and key points just weren't made well.
  2. Plasma's burn-in issues are a thing of the past. Non-issue with current sets. Now, the legal guys haven't gotten the message, so you still see a warning in the manual not to allow static images to linger on the screen, but some of the sets are deliberately marketed as better for gaming (which they are). The manuals need to be updated and this issue needs to be taken off the table.
  3. Plasma is actually brighter than LCD over smaller areas. This is irrelevant overall – the sample images on the LCD during most of the presentation jumped out at you in a way that plasma does not. Ergo, consumers prefer LCD at retail. (It's more balanced on calibrated sets in a home environment, but on bright images, LCD is superior, and on dark images, plasma rules.)
  4. Plasma has markedly better color than LCD, especially off-angle. Sadly, this is basically impossible to see in retail environments with uncalibrated televisions.
  5. Maximum energy usage on a plasma is still high if you display white fields all day long, but Plasma and LCD are pretty close in terms of energy consumption on real-world program material. LCD is still better (and has a much better number on the energy use sticker), but it's not a reason to disqualify plasma any more.
  6. Plasma is much, much better for resolving high definition when there is motion in the image. This is a key fact that Panasonic should be marketing hard, especially since the LCD competition charges more for sets that try to compensate by speeding up refresh cycles, and they are still noticeably worse on test patterns and real world content.
  7. How a TV is set up at retail is critical: the LCD set they had on hand for comparison showed more stars in a starfield, and none of us cared that the gamma of that set may have been off – there were far more stars visible on that TV than on the plasmas. And we actually know what gamma is – the average consumer never touches picture controls when they get their TV home.

All in all, I came away with a better understanding of why I still prefer plasma over LCD for most uses, and why most consumers are buying LCD anyway – and are unlikely to change any time soon.

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