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Why is the industry so lame?

I'm a 40+ audiophile who just can't understand why the industry is so tied to the past. Countless audio manufacturers will eventually go the way of the buggy makers if this continues. Consider:

In 1998 the Diamond Rio was introduced and Diamond was sued by the RIAA.
In 2001, the Ipod was introduced and it held 1000 songs.
In January 2003 Flac was introduced.
In 2003, Sonos was founded.
In November 2003 the Squeezebox was introduced.
In April 2004 Apple introduced its own lossless codec.
In 2005, Apple sold over 20MM Ipods for the first time.
In December 2007, Apple sells its 125 Millionth Ipod.

As we head into 2008, this is where the industry finds itself:

A growing number of mfrs now have proprietary Ipod docks to enhance their revenues to the tune of $100-300.

Krell now has a dock dubbed the KID that includes a preamp for about $1300. Matching power amp TBD.

The vast majority of preamplifiers have no DAC or DAC option.

Bryston and Naim have integrated DAC's into one of their integrated amplifiers (Bryston's is an option).

Only Outlaw has a 2 channel receiver with built-in DAC.

Rather than seeing the emerging new technology as something to be embraced the entire industry seems to regard it as something to ridicule. Sure, not everyone wants a DAC in their amp but how many are buying $2500 CD transports these days or even $1000 phono cartridges.

When will the industry wake up and smell the coffee?
wdrazek
brimac
59 posts
 
I'm in complete aggreement with wdrazek. Innovation has been, and will continue to be, from the high tech community. The high end sector seems to see itself apart from the digitization driving music, choosing to sell to the installed base. As a result, their profit margins must continue to rise at every tier, as they sell to less and less customers. Hence we see the $50,000 amplifiers that cost a tenth or less than that to produce. Meanwhile, Apple produce a computer and sells it at a 40% profit margin. The computer industry has given us wifi at low cost, iTunes is free and is incredible, Soundengine make some great speakers at insanely reasonable price; the high end sector cannot, or maybe choose not to compete.
Meanwhile, the high tech industry focusses its attention on this mass of music lovers and products like the squeezebox, Ipod, music servers and the like raise their heads over the decomposing carcass of an industry that chooses not to evolve.
wdrazek OP
100 posts
 
Brimac, you are spot on.

This industry just does not get it. They need those enormous margins because their market is stagnant to dying. If they tapped into the enormous potential market of Ipod users they could make a killing. And offer innovative products at far reduced prices. Instead, they lament over the world subsisting on 128k MP3 files and the decline of western civilization.

Even the recording industry, dinosaurs that they are, are now selling downloads free of DRM. They are finding ways of adapting. To see new lines of amplifiers, CD players and integrated units like the Arcam Solo and Linn Classik without digital inputs is indicative of an industry that is out of touch with consumer needs.

A digital input in the 21st century should be like a phono input was in the late 20th century - a given on any preamp or integrated amp. Every AVR I've owned for the past 10 years has had one (or more) of them.
unclejeff
1,313 posts
 
I use my Audio Aero Capitole as my primary DAC. It receives Toslink(digital) from my Satellite box, COAX(digital) from my DVD player, AES EBU(digital) from my Transporter which accesses my music library on my computer when I am not using the Transporter's streaming audio via the internet.

I also use the Capitole for what it was built for: CD Player with transport.
hitman_hifi
75 posts
 
Rolling Stone has been predicting all year long the death of the CD in favor of inferior MP3 digital downloads. Even recording techniques have been taking a turn for the worst (ie. dynamic compression). Check out The Death of High Fidelity in Rolling Stone's 2007 Yearbook issue.

I think the point here is that in order for the audiophile industry to embrace new hardware (Ipod docks, built-in DAC's, etc.), a high quality downloadable source must be embraced by consumers. If CD's go the way of 8-tracks and cassettes, where will lossless digital sources such as WAV, AIFF, etc., come from?
wdrazek OP
100 posts
 
Rolling Stone is right. Music downloads were up 55% last year, CD sales down 15%. It's still a relatively small part of the market but the tide is undeniable.

Most audiophile's digitized collections are from their own ripped CD's. While lossless downloads are not common yet higher quality downloads are becoming the norm. Linn has lossless downloads, Reference Recordings is working on it. DG's classical collection is available online at 320k. Even Amazon and increasingly iTunes offer 256k downloads. Not great, but a major step up from 128k.

Lossless downloads will become commonplace before long. There is plenty of bandwidth to support it. The recording industry knows some of us will pay for it. And they want the revenue.

It's a shame the mainstream audio industry's head remains in the sand.
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