Industry Roundup
Audio retail revival: Electronics retailers throughout the US are ramping up their commitment to audio separates, according to a June 21 report by Joseph Palenchar in TWICE (This Week in Consumer Electronics). Palenchar describes the new emphasis on audio components as a response to declining margins on "home theater in a box" (HtiB) systems. Through April of this year, factory-to-dealer audio component sales rose 29.8% to $344.6 million, with April sales up 41.9%, hitting a four-year high of $86.9 million.
Industry Roundup
XM on a roll: Recent marketing efforts appear to be paying off for XM Satellite Radio. On July 2, the satellite radio startup announced that it had exceeded the 2.1-million subscriber mark during the second quarter. More than 418,000 new subscribers signed up during that period—over twice the number recruited in the same quarter last year. XM-compatible products are appearing at an ever-increasing number of retail outlets, leading some observers to believe that the company may have a fighting chance in the long run.
Industry Roundup
Warner Music Group rebounds: WMG announced Thursday August 19 that it was near completion of a major corporate restructuring, a move expected to save as much as $250 million annually. WMG had originally projected savings of $60 million per year. Earlier this year, the company was acquired by an investment consortium led by Edgar Bronfman, Jr., scion of the Seagram family of Montreal and former chief of Universal Music.
Industry Roundup
Two-channel lives: Once the bread-and-butter of electronics retailers everywhere, the two-channel receiver has become all but extinct. Rotel America is making a valiant effort to save this endangered species with its new RX-1052, a remote-controllable 100Wpc unit claimed to offer "audiophile-grade sonics"—it includes a phono preamp, and a "massively overbuilt" power supply—with versatile four-area multiroom/multizone capabilities and basic video-switching features. Whole-house system integration is made easier via three IR links and 12V trigger outputs. An RS-232 interface connects to touchscreens and other media controllers, and provides an upgrade path for the unit's firmware. Available with either matte black or black-and-silver front panels, the RX-1052 goes on sale in October at a suggested price of $899.
Industry Roundup
Satellite radio goes high-end: Beginning early next year, Krell">http://www.krellonline.com/">Krell Industries will enter the booming market for satellite radio receivers with an XM Radio tuner. The $4000 unit will reportedly also receive traditional AM and FM broadcasts; an optional module will let it stream Internet audio via 802.11g wireless connection to a broadband modem, according to the September 27 edition of This Week in Consumer Electronics (TWICEhttp://www.twice.com">TWICE;). The tuner will join Krell's line of custom installation products. In a similar but less expensive vein will be new Sirius tuners from Russoundhttp://www.russound.com/">Russound;. At $699 and $999, the two new models will also include AM/FM tuners.
Industry Roundup
Credit-card amps: Miniaturization could change the look and feel of many audio products. On October 29, Austin, TX–based D2Audiohttp://www.d2audio.com/">D2Audio; announced its new line of MXS amplifiers, each only 1.5" tall with a footprint no bigger than a credit card. Intended for use with in-wall or on-wall loudspeakers, MXS amps can deliver up to 125Wpc into 8-ohm speakers or up to 250Wpc into 4-ohm speakers, with THD+N of <0.1% at full-rated power from 20Hz to 20kHz. Dynamic range is specified at "up to 145dB." The tiny digital amplifiers have programmable DSP features and 93% power efficiency, thereby eliminating the need for large heatsinks, and are said to sound as good or better than many traditional designs. Two-channel modules can also be used for bi-amping, according to the manufacturer.
Industry Roundup
Karmazin joins Sirius: The satellite radio service gained some serious traction in its recent acquisition of former Viacom, Inc. president Mel Karmazin. Just one month after signing "shock jock" Howard Stern to a multimillion-dollar contract, Sirius signed Karmazin to a five-year contract, bringing him in as its new chief executive officer. Joseph Clayton will relinquish the CEO title but remain chairman of the board. Karmazin departed Viacom in June and began discussions in earnest with Sirius after the satellite service landed Stern, in a move Karmazin described as "brilliant." Karmazin had previously dismissed the potential of satellite radio, but now believes it could be huge—larger, perhaps, than the growth he helped nurture at Infinity Broadcasting, which he took from a few stations to more than 200. Sirius stock rose more than 10% on the day Karmazin's contract was announced.
Industry Roundup
Tweeter's new look: Tweeter Home Entertainment Group is entering the first phase of a massive makeover—with redesigned stores and a new marketing approach emphasizing custom installation and media-server–based home-theater products. The company will de-emphasize individual components and pitch its services toward women, who make most decisions about home entertainment and home décor. The company's pitch will be "We can untangle your mind," a reference to the widespread frustration with semi-compatible and often incomprehensible technologies. Over the next 18 months, Tweeter will consolidate its various regional chains under a single brand name, with a prototype 14,500 sq. ft. store in the Las Vegas suburb of Summerlin, NV to be launched at the upcoming Consumer Electronics Show (CES).
Industry Update
Meet the new boss: Tannoy has announced the promotion of sales and marketing director Andrzej Sosna to managing director of the Scotland-based loudspeaker manufacturer. The company's former managing director, Anders Fauerskov, will now assume the title of CEO of Tannoy's parent, TC Group, which bought the TGI group of companies, including Tannoy, in 2002. Sosna, in his role of product development director, has been called "the driving force behind Tannoy’s recent product successes."
Industry Update
Rotel's newest: Rotelhttp://www.rotel.com/">Rotel; is venturing into the power conditioner market with two new components developed in conjunction with APC (American Power Conversion), a company with a long history in power-protection: the $1599 RLC-1080, which offers internal battery backup, and the $499 RLC-140. Both models offer system protection against spikes, brownouts, over-voltages, and RFI noise. Both also offer protection for coaxial, telephone, and Ethernet hook ups, as well as audible warnings and text displays.