It’s the time of year for saving money!
Fact – the Consumer Technology Association, formerly known as the CEA back in an era when CES was the specialty AV industry’s only global show isn’t the audiophile industry’s lobbyist anymore. Nowadays they are more about 5G than high-performance sound. Obviously, there’s a void…
I missed my first Consumer Electronics Show in 24 years in 2018. But in 2019 was forced to make a one-day trip back to Las Vegas at the peak of flu season and at maximum expense. My reason for the trip had little to nothing to do with any publication. With a little outside help, including an interpreter, I was able to deal with my original reason for being there quickly and effectively; leaving me with a bit of a conundrum: do I go to the Central or North Hall to see the bleeding-edge video technology from the likes of Samsung and Sony, or do I take the monorail to Harrah’s then hoof it over to The Venetian to see what was left of the audiophile industry? I opted to go to The Venetian, and what I saw was almost unrecognizable.
For generations CES was filled with the absolute best in audiophile products. In 1994, at my first show and ironically the last at the legendary Sahara, all of the big audiophile companies displayed their latest goodies. To not be there was a death knell for your brand back then. Every dealer in America and every large-scale dealer from the rest of the world went to Vegas for CES. Also, every international distributor who sold AV products to every distant corner of the world was there. The long-term cost of being at CES was small compared to the actual dollar cost of not being there. It delivered ROI – return on investment in spades. The sector was so successful at one point that a “carpet bagger show” called T.H.E. Show offered a next-door or across-the-street option for audiophile companies who wouldn’t pay up what the CEA asked for a display space. And there was enough demand to make both venues work as recently as a few years ago…
Flash forward to 2019 – there was one third of one floor of the Venetian dedicated to specialty audio. One floor. That’s it. Historically, high-end audio used to have a strong presence on the 29th and 30th floors, as well as a few of the Venetian’s other upper floors, with the biggest suites on the 35th. That was all gone.
I have heard comments repeated from the top leadership of the CTA saying, “we don’t need audiophile exhibitors because we can replace them with a nearly unlimited supply of Chinese OEMs” and they are right. I spent some time in the city-like “Asia Tent,” and there were more companies selling toaster ovens that can burn an image of SpongeBob onto your morning waffles than companies selling meaningful floor-standing speakers by a 20:1 margin.
We know the CTA has abandoned the specialty AV business during CES in place of the “T” of the CTA, but what should be done about it? Much like agriculture and domestic manufacturing, specialty AV could benefit from some clear, strong, and powerful advocates. I think the specialty AV companies should team up and create their own lobbyist group outside of the CTA. Internet of Things (IoT) hairbrushes, drones, and driverless cars are all sorta cool, but they ain’t the date CTA came to the prom with.
I can think of people with the chops to do the job who have the industry experience and long-term vision to help our industry thrive in terms of leadership. Here’s several, right off the top of my head…Marc Finer, a consultant who helped Sony launch the Compact Disc back in 1983 and who helped launch the DEG (Digital Entertainment Group) as well as the HD Audio movement more recently, comes to mind. Also, Jack Shafton, the recently retired head of sales of GoldenEar speakers and formerly of Paradigm would be another good choice. Mark Ormiston, the founder of the single best specialty AV retailer in the nation, Definitive Audio in Seattle, is another good possible choice. Former CEA Audio board member Jeff Hipps would be another one. Mind you, I didn’t ask any of these people if they would want such as role, I am just saying they might be really good at it. Some might actually be horrified at the thought…
The audiophile industry is at a critical crossroads in 2019. The business must transition into selling to a new generation or it will never grow and flourish as it has for more than 30 years with Baby Boomers. Leadership, guidance, vision, and political power all would and could help the effort. And for as much as I hate “big money in Washington,” it is currently how the game is played, and our industry simply isn’t playing it in any meaningful way.
What say you? Is the CTA good enough? Who would you want leading the audiophile and specialty AV business if you had your say? Comment below. We love to hear from you.
I think that the high end of the audio business needs its own show and it needs help in arranging for more tools to use in the sales process. Anyone have an idea of how to arrange consumer financing arrangements like in other high end industries?
If all of the companies worked together under a group like CEDIA they could have such a thing (a very good idea btw).
They might be able to buy health insurance and-or set up an industry retirement program that has the advantages of large numbers.
Yeah if only *someone* with decades of experience in the industry, who also happens to be CEO of the most-read website on high-end A/V would rally the troops and make it a reality.
But I don’t know anyone like that.
Hey, wait a second…
I wasn’t lobbying for a new job
Agreed, Jerry. No group advocates for the high end any more. And this industry could really use an advocate.
I read The Advocate… does that count? 🙂
I nominate the honorable Dr. Ethan Winer!!! 😂😂😂
How about Ted Denny?
Maybe Mark Schifter? 🙂
How about Tom Cruise? Someone told me he is an audiophile.
I agree that CEA/CTA has moved on from our audio interests and am well flattered to see my name on the resurrection list. That said, I am not a candidate. However, I do agree with Steve’s premise. Audio is central to the video, PC, streaming, iPhone, gaming et al experiences, yet is viewed as only an inconvenient relative. We tried to make it central when I was active in CEA’s audio division. I once wrongly thought the baton had been picked up by CEDIA. Now Amazon and Google are audio’s most visible supporters but Alexa etc. are clearly not high end. Samsung has a stake in high end with Harman. Can they send us a leader?
Trump said he wasn’t running too Jeff!!! 🙂
I recruited you thus you can’t escape… at least this thread and comments…
The video game industry is bigger now than movies and music combined domestically but not one specialty AV store that I’ve seen has embraced it. Fortnite does 1/4 of a billion dollars per month for a “free game” and to play well you need high refresh rate monitors, gaming chairs, special gaming mice (mouses? sp) and screaming fast gaming PCs. Could we not sell that too?
Hi Jerry, Your post is interesting as it raises several questions. First, why does the evolution of CES from an AV show to a tech show demonstrate the need for a lobbying group? Secondly, what the purpose be for such a lobbying group? And finally, are people on the west coast aware of Axpona or Rocky Mountain Audio Fest (RMAF)?
Additionally, the AV world has morphed into a number of subcategories including two channel/high-end audio, “mid-fi”, vinyl, home theater, flat panel TVs, headphones/personal audio, computer audio/streaming, vintage audio, and gaming. Would there be separate lobbying groups for each subcategory?
Ted – good questions:
1. CES evolved. Not much we can do about it. The CTA evolved too including a name change and they followed the money – which is fine. As a lobby group they aren’t really helping the former darling of their show evolve and prepare for a new generation of clients.
2. The goal of a new group would be to help the specialty AV business have direction and leadership going forward. An industry trying to sell $20,000 preamps to 68 year olds isn’t going to be growing very fast.
3. Interesting question: I go to AXPONA and RMAF personally and I live in LA. Chicago isn’t exactly close to Los Angeles where I live and the weather in April in Chicago leaves a bit to be desired. Both shows are absolutely one dimensional – audio only. Men. Old men. The way things have always been. Very little video. No integration of video, gaming, streaming video etc… They have a long way to go to get to what I am advocating here.
3.a. We asked a sweepstakes question recently about these shows and it was 50-50 if people have ever been. Overall, I think they are a good thing as you can hear/see/experience a LOT of stuff. I just wish they could evolve into something that mainstream consumers would relate to.
4. In my view a new lobbyist group would cover all of the sub categories that you mention as there is a TON of crossover between some of them.
As and AV dealership owner, I think the AV industry as a whole needs a reality check, and there are many facets to this point – you can have all the shows and advocacy you want, but a dealer who is smartly looking at the future market won’t buy in to those high-end brands, thus less companies showing it off. Because the trends seem to show that the next gen of consumers don’t seem to care about this stuff anymore, there is no brand loyalty anymore, or even the slightest care to spend more than 5 seconds of there attention on learning about it. Vendors arent focused on high end audio, because consumers aren’t. What our whole AV industry needs is good advocate and organizer, as Jerrydel said earlier, CEDIA… they have been around forever, they just restructured and are looking at all new avenues to take. We can use it for all kind of programs, Health care, and retirement plans in our industry. Companies like SnapAV are starting to look at things like this, with recent surveys suggesting they are trying to offer dealers bulk consumer financing programs. Now this type of thinking of letting even smaller or low volume dealers the ability to offer financing to more people may actually allow some to purchase ‘better’ equipment. But getting this next gen to ‘drink the kool-aid’ on a brand just does not seem like something thats going to happen, some advocacy may help that but I see it as and uphill battle.
Yup. I always like to use the example that the vast majority of movie theatres in the US are still using 2k projectors. Nevermind HDR, Atmos, etc. (Unless you’r in a Dolby Cinema, which you should be cause its the best.)
Hind sight is 20/20. CES failed and now instead of pooling our resources for one show we are supporting nine domestic and at least five international shows. CES supplemented the Venitian yet we still complained at the cost of the show. As audio only companies we tried CEDIA bit the store owners and brick and mortared stereo enthusiasts stopped coming opting to send installation techs for training. As a salesperson I prefer to present to decision makers. RMAF is coming and the prices went up. Why? They chose a new venue that is easy for ex-Denver attendees to get to, it is elegant, and added a professional day. If we don’t pay our dues at this show it too will go away losing the only domestic audio show scheduled in the early Fall. Don’t tell me CEDIA is that show. Audio at CEDIA is a joke.
Now Jerry, you call for advocacy at the level of CTA? We can’t even make our own event and pay up to do it properly. We don’t have a high end audio manufacturer association. The closest thing I can find is the exclusionary buying groups. Perhaps Niche Marketing by its very nature means no one can see a bigger picture? If you made millions in one form or another from the audio business you are smarter than me and we need you to lead this charge.
I am not calling for CTA levels. I am calling for some level of leadership and organization at ALL. It doesn’t have to be with a powerhouse lobbyist group like the CTA but with nothing – you see Dan’s (see comment below) prophesy come true.
As a decision maker, I only go to cedia. I don’t want to be at the consumer shows. And I find it interesting you want to sell your wares to the ci industry, but don’t want to be at the ci industry shows? And as for selling to the decision makers, you may want to reconsider that stance…the installers are the decision makers for us. They are in the trenches in the real world with the customers, they actually know what the consumer wants. A ‘sales only person’ in store, has no clue what a customer wants. So we adjust our offerings based on installer feedback often. Also, we stopped employing sales only people, and now just employ pro techs. They do it all, sales, spec, design, install… Start to finish. So the ‘tech’ may have more purchasing power than you think these days.
Yeah, holding out hope that younger generations are gonna start picking up the high-end A/V slack is not looking good. Under-40’s watch movies on their cell phones and crappy laptops and don’t seem to care. They don’t know what 5.1 means. They think HDR must be some kind of new designer drug. Etc.
Outside of he A/V diehards I know, none of the normal folk buy high-end stuff. Just the Best Buy blue plate specials.
Really wish you’d checked with us at CTA before posting such a misleading piece. 1) Anymously-sourced and unattributed quotes are bad journalism and not up to your standards. 2) CTA is a fierce advocate for policies that support audio-sector innovation – from helping US companies fight tariffs to supporting licensing reforms that get more music into consumers’ hands (and speakers). 3) Just this year, the CTA Audio Division launched the “Studio Stories” video series – helping get new audiences excited about Hi-Res Audio. We’re proud of CTA’s leadership and success, but we always want to do more and do better. Bring us your constructive ideas, and let’s work together!
Michael Petricone, SVP, government affairs, CTA