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An Industry in Free Fall

Physical sales of music plummeted at a rate that exceeded the sales growth of legal downloads in 2007, according to the IFPI. While global digital sales grew by 40% in 2007—representing about 10% of all music sold—IFPI figures suggest that CD sales in the US dropped by 19% (10.5% in the UK).

The IFPI also made sweeping claims about illegal downloading, claiming that in 2007, illegal downloads outnumbered legal ones by a ratio of 20:1. Ever wonder where the IFPI, RIAA, and MPAA get their statistics on illegal downloads?

Sometimes they just guess, said the Associated Press this week…

CEA Launches Digital Downtown

The Consumer Electronics Association (CEA) announced that it will launch "a new consumer technology event," Digital Downtown (D2), 'to showcase the latest electronic lifestyle and workstyle products to residents and employees of Mahattan's Financial District." D2, which will be held from June 12–14 at the Winter Garden of the World Financial Center, will be open to the public, unlike the annual Consumer Electronics Show (CES).

The CEA's Ryan Strowger said that it was too early to name the participants in the event, since it was only announced last week, but Digital Downtown's website…

Audio Research Acquired by Quadrivio

Audio Research, one of the companies that created the Silver Age of American high-end audio 38 years ago, was acquired by Italian private equity firm Quadrivio SGR on January 25. Quadrivio, which acquired Sonus Faber in 2007, intends to keep Audio Research's current management team in place.

Audio Research founder and President William Z. Johnson will continue with the firm as honorary chairman, but will step aside from day-to-day operations. Terry Dorn will be President, Gerald Oxborough will become CFO, Ralph Fetter will continue as managing director of manufacturing, David Gordon will…

NHT Acquires NHT!

When last we heard business news from NHT, it had been acquired by Vinci Labs in 2006. Today, NHT managing director Chris Byrne told Stereophile, "We are sitting down right now and signing the papers to purchase NHT, Inc. from Vinci Labs, creating NHT Audio, LLC."

What exactly does that mean? Byrne explained, "Vinci Labs was, in many ways, a good fit for us, but at heart Vinci is a venture capital company, and high-end audio is just a really different kind of market.

"Vinci purchased Crocs when it was a $10 million company and grew it rapidly into a $200 million one. Venture…

The Bite of the Apple

Longtime Stereophile reader (and EFF senior staff attorney) Fred von Lohmann sent us a message pointing us to rumors that iPod Classics running v1.1 firmware were outputting DC through both their dock connection and headphone jack. He included a link to iLounge.com, which bills itself as "an independent provider of information about Apple Computer Inc.'s iPod and iPhone digital media players, accessories, and related software."

The iLounge.com article cited a discovery by headfi.com correspondent "Nine" that he had measured 500mV of DC coming out of the analog outputs when the iPod was…

It's Not All Gloom—News from the Classical Front

You thought the only new articles about CDs you'd be reading would be about further declines in sales? Well, it turns out that ArkivMusic, the country's leading website for new and formerly out-of-print classical recordings, posted, um, record sales last year.

Now billing itself as "The Source for Classical Music™," the online retailer posted a record 30% growth in 2007 sales over 2006, including more than $1 million in sales in December alone. That may seem like small change to the pop industry, but you can be sure it's jump-started the hearts of classical executives at the four major…

Polk Enters the Apple Stores

On February 5, This Week in Consumer Electronics announced that Polk Audio had announced plans to sell its I-Sonic ES2 iPod docking tabletop hi-fi ($499) and miDock Studio portable iPod speaker through the Apple website and freestanding store network. This came less than a week after Polk announced that Best Buy would carry its TSi loudspeakers, PSW powered subwoofers, select RM series drive-units and, of course, the SurroundBar 360 DVD Theater (all of which are currently available from the rival Circuit City chain).

What does this mean? Regarding the deal with Apple, it means that the…

Squeezebox Duet Puts the Display in Your Hand

Logitech's Squeezebox Network Systems has added a new model, the Duet, which adds a 2.4" color-LCD screen and a scroll-wheel to the unit's hand-held remote (not unlike the Sonos system). The screen can display song titles, album art, customized wallpapers—even RSS feeds and radio station IDs.

The $399 Duet comes in two parts, the receiver and the remote/charging cradle—additional units are available separately (receiver: $150 remote: $300). As with Logitech's Squeezebox and Transporter, the Duet works with the digital files stored on a host computer and interfaces with most computer…

Ultralink's Don Bouchard Dead at 58

Don Bouchard, Ultralink/XLO Products' executive vice-president, succumbed February 7, 2008 from injuries he sustained in a motorcycle accident on December 15, 2007. Bouchard, riding with friends, had his front wheel drop into a hole in the pavement while traversing a railroad crossing and was thrown over his handlebars. The resulting injuries included a severe skull fracture, right-brain trauma, a broken clavicle, a broken rib, which punctured a lung, as well as internal trauma, multiple contusions, and bruising.

While the injuries were massive, Bouchard clung to life with tenacity,…

Apple: The Fix is In

Earlier this month, we reported that iPod Classic owners were experiencing hiss and DC offset problems when they updated their firmware to v1.1 from v1.03.

Responding to our request for more data, Head-Fi Forum member "Nine" passed along some measurements that showed both a 500mV steady-state DC output, as well as a sporadic pulse signal. He wrote, "My theory on this (mind you, this is only a theory) is that the 1.1 firmware is not properly powering down the DAC."

Apple has released a v1.1.1 version of its firmware, saying only that it includes "bug fixes." Members of various…