The music industry repeatedly points to online file trading as the explanation for its declining market. But annual sales are still well ahead of 1998's figures and several analysts note that when you take into account the economic downturn, increased competition for entertainment dollars, high CD pricing, uninspiring new music, and consumer resistance to copy protection, those negative numbers should really <A HREF="http://www.stereophile.com/news/11441/">be far worse</A>.
You've got to give the audiophiles who post at the <A HREF="http://www.AudioAsylum.com">Audio Asylum</A> online forum credit. Not only is AA one of the more informative and constructive audiophile communities, some of its members provide the audio industry much-needed feedback on how it's doing—for better or worse.
Consolidation is a fact of modern corporate life, but the consumer electronics industry has generally bucked this trend and remained relatively fragmented. Notable exceptions include Harman International and Rockford Corporation (which recently acquired loudspeaker manufacturer NHT)—now it's time to add <A HREF="http://www.dm-holdings.com">D&M Holdings</A> to that sparse list.
At one time the music industry was known as a cultural force. It could excite the public and change the course of history, even prodding some governments to attempt censorship. These days, the record labels themselves are acting more and more like a police force, looking for ways to restrict and control how music consumers behave.
The streak of acquisitions for <A HREF="http://www.dm-holdings.com">D&M Holdings</A> continues. Last month saw the company <A HREF="http://www.stereophile.com/news/11595/">pick up</A> its third major consumer electronics brand when McIntosh Laboratory was brought into the fold with Denon and Marantz. Last week, D&M announced that it was successful in a bid to acquire certain assets comprising the digital video recorder and MP3 business units of troubled SONICblue.
Last week found Recoton <A HREF="http://www.stereophile.com/news/11618/">struggling</A> to keep its head above water. This week Gemini Industries tossed the beleaguered company a rope, announcing that it had reached an agreement to acquire Recoton's consumer electronics accessories business. In support of this transaction and Gemini's growth plan, the company raised new funding from Boston-based Parthenon Capital.
On April 8, <A HREF="http://www.rcot.com">Recoton Corporation</A> voluntarily revealed that it and all of its US-based subsidiaries filed for bankruptcy protection in the United States Bankruptcy Court for the Southern District of New York under Chapter 11 of the United States Bankruptcy Code.
The music industry is facing its toughest business climate in recent memory, and slow sales are hurting not only the record labels, but music retailers as well. In the face of continuing sales declines, store closings, mergers and consolidations, layoffs, and seemingly intractable digital distribution issues, the industry came together last month for its annual <A HREF="http://www.narm.com">National Association of Recording Merchandisers</A> (NARM) convention and trade show in Orlando, FL.
The DVD-Audio format's been around for a couple of years, but simultaneous DVD-A and CD releases of new music have been few and far between. Warner Brothers is hoping to improve on that record with the upcoming album from Fleetwood Mac, <I>Say You Will</I>.