Friday, September 11, 2009

Key Enablers

Three major things need to happen before networked audio takes it wings:

1. Awareness:
Connected home audio is still in its nascent stage and appears very "techie". An awareness is needed for the mass market adoption. Also, current major players are mostly start-ups and tier-3 companies that have little marketing budget and no brand position. This is changing though rapidly as increasingly tier-1 companies are getting connected to the networked audio segment.

2. Price Points:
A transition need to happen from pricey $2000 AVRs into sub $500 audio boxes so that more users can afford. Once this happens the shift would be towards volume game. It is expected that most big brands will have a sub $500 systems in 2010.

3. Usability:
This one is a major problem for any disruptive device. Current devices are all seen "techie" and complex to use. The following changes are likely to increase the usability:
  • Entry of major CE brands that know the CE market is expected to refine user experience for mass market devices
  • WiFi set-up made simple by the use of WPS standard
  • Color LCDs and intuitive GUI makes navigation easier
  • Popular music services like Pandora, Raphsody etc., are making the content discovery simpler