| Editorial July 2004
Learning from the Home-Theater Industry
Over the course of the last nine years, the SoundStage! Network has
steadily expanded its coverage of the consumer-electronics industry. The resulting growth
has taken many of its longtime writers in directions not imagined when those first reviews
were written. Beginning with SoundStage!,
the network’s original content centered around two-channel high-end audio. Although
its roots are still firmly planted in that niche industry, the rapidly expanding coverage
has woven its way into almost every corner of audio/video-based consumer electronics.
It’s therefore no surprise that many of our reviewers
now contribute content to multiple sites within the larger network. And why not? It’s
been a great opportunity for many of us to learn about different aspects of the industry.
In my case, home theater would have likely gone unexplored, at least for several more
years, had there not been a need for more writers in that arena. So although I began by
writing about esoteric two-channel audio equipment, and still do to this day, I’ve
developed a love for home theater and multichannel audio.
This personal market-segment cross-pollination has given me
a chance to compare and contrast different sectors of the larger industry. Because of my
roots in high-end audio, it is with some frustration that I write this editorial, but it
is also with much admiration for the home-theater side of the business.
The home-theater segment of the marketplace seems to run
like a well-oiled machine. Some of this might be timing and luck, but most of it is due to
specific steps taken to grow the business model. The high-end audio sector could stand to
take a few lessons.
Let’s trace a few important milestones in home
theater’s growth:
The launch of DVD back in 1996-97 was a major
accomplishment. With a few minor exceptions, hardware makers, software makers, and
consumers simultaneously embraced the new format. That simple three-segment equation led
to the fastest-growing consumer-electronics format in history. It was a boon for every
player involved. The reasons for DVD’s success could be the subject of numerous
editorials, so I’ll just mention one here.
From the start, DVD has had a standardized audio format:
Dolby Digital. DTS did find a way to coexist, but with the exception of a few early
processors, consumers were never forced to choose between the two. With DVD firmly
established, the industry seemingly timed its Next Great Thing with aplomb.
High-definition television, measured in dollars spent, will surely eclipse DVD and drive
the home-theater industry for years to come. Of course, high-definition DVD will follow
closely on HDTV’s heels, shoring up the future of the industry for as far as the eye
can see.
These three products -- DVD, HDTV, and HD-DVD -- all have
elements in common that mean guaranteed success. The most important factor is that each is
demonstrably better than its predecessor. It’s the dream scenario: a product that
sells itself on the sales floor.
The products alone are not solely responsible for the
home-theater boom, however. A support network for dealers and manufacturers has developed
that serves to 1) grow the principals’ business, and 2) better support the consumer.
Look at the trainings made available to companies by CEDIA: If, say, a dealer wants
to enhance its business by providing better service to customers, the resources are
there to attain what’s needed.
By contrast, the audio-only side of the equation is in sore
need of help. The SACD/DVD-Audio "format war" debacle is one example. Here was a
chance at a standardized high-resolution multichannel audio format, yet it’s being
wasted: You won’t find dealers out there that are set up to educate the
customer and demonstrate a finely calibrated high-resolution multichannel audio
system. How can they expect to sell what they won’t demo? I’m afraid neither
SACD nor DVD-Audio will have much relevance in the future. There’s also a lack of
customer-service training at many audio-only dealers; in many of the dealers I’ve
visited, the absence of that single basic tenet of good business practice has dreadful
results. Is it a wonder that their customers run for the hills?
Lest I be too hard on one segment of the market, I should
also say that many markets far removed from consumer electronics could stand to learn a
thing or two from the home-theater industry. From my perspective, home theater has many
bright, profitable years ahead. My audiophile roots have now sprouted a monitor and
surround channels, and I’m thankful. I wish only that the industry’s audiophile
roots would benefit more from the foliage created around them by home theater.
...Jeff Fritz
editor@hometheatersound.com |
