LATEST ADDITIONS

Some optimists in Washington, on Wall Street, and elsewhere predicted that the Asian economic crisis wouldn't reach the United States. But in late August, the financial flu infecting that part of the world, and the ongoing monetary instability in Russia, finally affected North America. As of Friday, August 28th, the <A HREF="http://www.dowjones.com/">Dow Jones</A> Industrial Average was hovering just above 8000, down from a record high of 9337.97 on July 17th. The market decline has affected the whole economy---traditional industries as well as hot-ticket ventures like Internet stocks.

I think I've finally figured out the secret of <I>Stereophile</I>'s success. You, cherished reader, <I>don't</I> read this mag because it's chock full o' reviews of tantalizing audio gear (even though it is). And you <I>don't</I> read this mag because JA and RL strive so hard to keep the literary quotient as hi as the fi (even though they do). And I <I>know</I> you don't read this mag cuz trusting yer own sensory input is a mighty scary proposition indeed so you look to <I>Stereophile</I> as to a Holy Bible that eases your Earthly burden by <I>telling you</I>, Ah say Ah say TAILING YEW what to buy (do you?).

In this age of $70,000-plus "flagship" designs, perhaps $25k is no longer an obscene amount to pay for a pair of loudspeakers. Still, it's <I>mucho dinero</I>. What makes a speaker worth this kind of bread? Does the product's intrinsic value really warrant such a lofty cost, or is it merely a matter of pricing at what the market will bear? The answers to these questions requires careful examination of not only the speaker, but also of the buyer's own soul, priorities, and pocketbook.

Looks like it might be a while before a profitable formula jells for selling music over the Internet. News this week indicates that one of the largest music retailers, <A HREF="http://www.towerrecords.com">Tower Records</A>, is finally ready to challenge the market, while online distribution pioneer <A HREF="http://www.n2k.com">N2K</A&gt; will be scaling back operations until things steady a bit.

The latest music-piracy statistics have just been released by the <A HREF="http://www.riaa.com/">RIAA</A&gt;, bringing to light several new wrinkles in the ongoing struggle to protect the owners of music copyrights from those who illegally copy and sell protected works. Released August 21, the report details the new problems brought about by CD-R technology and MP3 files distributed via the web.

In June, while the <A HREF="http://www.riaa.com/">Recording Industry Association of America</A> was collecting fat <A HREF="http://www.stereophile.com/news/10208/">settlements</A&gt; from unauthorized CD compilers, its Canadian counterpart was busy shutting down <A HREF="http://www.purpledot.zener.com/">Purple Dot</A>, a custom-disc operation in Calgary, Alberta. The Canadian Recording Industry Association e-mailed a cease-and-desist order to 18-year-old Robert Clark, owner and operator of Purple Dot, which had been advertising on the Internet in the <A HREF="http://www.yahoo.com/">Yahoo!</A&gt; directory.

In last month's edition of this new column, I wrote about those of us whose systems are out in the breeze in the Family Room, at the mercy of wives, Significant Others, curious children, cats'n'dogs, and nonaudiophiles who, for the life of them, can't figure out what it's all about. I met a chap the other day whose wife said to me, "Oh, you suffer from the same audiophile disease." I hastened to inform her that I am the disease, and suggested that her husband was pursuing a noble path for the love of music—no bad thing, in my view. She remained unconvinced.