News

Last week, the US Secret Service reported that, assisted by the Recording Industry Association of America's (RIAA) New York Anti-Piracy Unit, it had executed two search and seizure warrants in Queens and Manhattan, resulting in what the agency called "the break-up of a massive counterfeit music operation." The Secret Service reported that approximately 20,000 recorded CD-Rs and 1200 masters were seized from the Queens and Manhattan locations.

Old joke: "We lose money on every sale, but we make it up in volume." A similar concept seems to be at the heart of the free download phenomenon sweeping through the Internet music industry: give it away as a lo-rez MP3, and customers will come back to buy the CD.

Although the deal was announced by both companies only weeks ago, it appears that Audio Advisor will in fact not be distributing Musical Fidelity products in the US after September 1. In AA's place, Musical Fidelity has chosen Kevro International as the exclusive US distributor for its complete line of electronic products. According to Kevro International spokesperson Kathy Ginn, "Musical Fidelity [has] chosen to market [its] products through independent specialists rather than [continue] their previous approach [of distributing the line] through mail order and the Internet. And, unfortunately, AA will no longer be a dealer."

Loudspeaker manufacturer Polk Audio announced on December 31 that it had acquired an interest in Genesis Technologies, manufacturer of both loudspeakers and digital products. Not only did Polk invest $500,000 in Genesis convertible preferred securities, it also obtained a three-year option to purchase the Colorado-based high-end audio company, which is led by three industry veterans: Arnie Nudell (co-founder of Infinity), Paul McGowan (co-founder of PS Audio), and Mark S. Schifter (co-founder of Audio Alchemy).

On August 21, Directed Electronics, Inc. announced that it had entered into a definitive agreement to acquire Polk Audio for $136 million in cash, with the deal to close in Q3 of 2006. Current Polk management will join Directed, and company founder Matthew Polk and Polk president Jim Herd will sit on Directed's home audio advisory board. File this one under the you can't make this stuff up department: Sandy Gross, founder of Directed's other loudspeaker company, Definitive Technology, already sits on the board, which makes Polk's presence there a homecoming of sorts, since Gross was a founding partner at Polk.

The Home Entertainment 2001 show, held in New York City May 11–13, 2001, received high marks and a standing ovation from show attendees, who came to experience some of the most innovative and exciting consumer electronics products in decades.

Last week, the Consumer Electronics Association (CEA) announced that it is working to establish a single standard for high-data-rate home networking using the powerlines already installed in consumers' homes. Stating that it is "recognizing the need for a baseline technology standard," the CEA says it has invited integrated-home-systems industry stakeholders to participate in the creation of a standard for residential powerline networks, to be completed by year's end.