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Why is There Not More Consolidation in Audio?

I’m new here and know I have a lot to learn about various equipment, but it strikes me that there is an almost unlimited amount of options in audiophile-level products.  This is not just in models offered by a given manufacturer but also in the number of manufacturers.

When I look at most product lines, there were once many companies that produced the items, but over time some became financially insolvent and closed, or they were bought up by better-positioned competitors.  This was true with beer.  This was true for soft drinks.  This was true with automobiles.  This was true with gems and jewelry.  This has been true with all sorts of food manufacturers.  We had many more options before and now we have few options.  

I know that some audiophile brands have gone by the wayside. There are references here to, “If you can find one of the old __________, they were pretty good.” And a bit of research shows me that the manufacturer went out of business and/or was absorbed by a competitor.  Still, choices abound.

My questions are:  Why hasn’t consolidation happened more with high-end audio?  Do you think the choices will remain plentiful or will a few manufacturers come to dominate the market and squeeze out weaker competitors?  Is there something about the audiophile customer, or the audiophile market, that makes it likely that more options are sought rather than fewer options (e.g., each person seeking a unique collection of equipment rather than to own the same equipment as others)?
bob540
bkeske's avatar
bkeske
5,597 posts
 
I believe jond basically covered it.

Consolidation happens when larger companies see profit in buying smaller companies or to eliminate competition. This is such a tiny niche market there's really not much of a point except for a few bigger brands. 

asvjerry's avatar
asvjerry
4,680 posts
 
HE exists for the same reason (or rationale) that fine wine, watches, cars, residences, clothing, and all the other trappings of 'taste' or just sheer "... I've got the $ to indulge myself upon 'X'..."

There is a point where true 'performance' and the means and (perhaps unconscious desire) to impress oneself or others....

Now, I'm not a 'shrink', nor do I claim to be one.

All I'm involved with is making myself Happy.

What and how 'others' are up to and about is their business. *G*

As for 'what happens' with the current uproar....my jury is still Out.

I'll CMA for the time being; suggest you do the same.

Don't believe everything you hear or read for the moment.

Keep your head, let others lose theirs...;)
bob540 OP
407 posts
 
Some very good responses.  Since posing these questions, I happened upon a site that lists now-defunct electronics companies. There are many more than I realized, and few that I ever knew about.  So, as others said, the history of audio businesses is extensive.  I had thought this proliferation was a more recent trend, but it goes back quite a ways.  I will probably get around to visiting some high-end audio/video showrooms, where I will likely “discover” more names I didn’t know about.  Seems like an area of interest for those with capability for encyclopedic knowledge.
jimofmaine's avatar
jimofmaine
41 posts
 
$1000. That's "high-end audio" to most people. There has been and will be consolidation in the consumer audio market. As you go up in price, naturally things become boutique. 

(There's an elephant in the room with expensive gear. Unique to this niche, this subset of the audio industry is an uncontrollable element, THE ROOM.)
larry5729's avatar
larry5729
1,008 posts
 
I think we are going to see many audio manufacturers go out of business due to the Corona Virus.  People are unemployed and they are going to choose to eat rather than buy stereo gear.  Hope this does not happen.

This industry was barely alive before the Corona Virus.

I have received hundreds of real estate listings for homes listed for sale within a 10 mile radius to keep an eye on the real estate market and I have yet to see one picture showing a pair of speakers in any room of the home listed.  I even see people with $5,000 to $10,000 entertainment center furniture with a wide screen TV and not a single speaker in sight to include built in surround sound speakers.  Are you kidding me?  People are spending that kind of money on furniture and are willing to listen to their TV speakers.  No wonder why the audio industry is hurting.  

When is the last time you viewed a TV commercial from Wilson Audio, Focal, Bowers & Wilkins, ARCAM, Yamaha, Rotel, MacIntosh, Bluesound, etc.?  Then you hear audio manufacturers complain about their business.

Right now, watch for a lot of audio store closings and for audio manufacturers to close their doors.  If people have to choose between eating and a high end stereo system, what do you think they will choose first.
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