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The gist of that article is correct. A Grammy winning recording engineer came over to hear my room a few months back, and we honestly spent more time talking about this very issue. He said the boom and sizzle pays the bills. Hi rez is a niche market and will always be that way. It does not have the same universal appeal of video. What's even more depressing is the state of hi end audio. Just look at our demographics....aging dudes between the ages of 45-70. Go to any show and that reality is staring back at you.
Just because the masses aren't buying it doesn't mean that it's not worthwhile. In fact, I think sometimes the exact opposite. The masses buy Justin Bieber and Beyonce. I know of no one that has ever though the hirez market would grow beyond niche. So what?
There will always be a market for high end audio, and hi resolution recordings. Take a quick look at the amount of classical music available on SACD, and one quickly sees that there is a fair amount of media available.
HD is not accessible, mostly due to lack of money to support proper listening environment and speakers. Huge speakers in dedicated rooms just isn't in the cards for most (unless you're one of the fortunate few 45 - 70 demographic mentioned above). That generation (my generation) grew up with stereo as the only techno-cool gig available for nerds (other than ham radio) and now a few of us are able and interested in assembling good systems. But typical 20/30 somethings don't have the money/space and frankly don't know what 'real' (live/unamplified) music sounds like. Besides they're after convenience and instant gratification. The economic/demographic realities dictate they will live in smaller budgets/houses for the foreseeable future. But we have immense technologic resources available to blend HD into these limitations.Equipment designers really need to work on merging 'life-style' with quality. Wireless gear to work off their smartphone/laptop (the new BlueTooth standard is not HD but a good step in this direction). Small 2-way powered/active speakers (for home enjoyment, not dry/nit-picking studio monitors) would be a very important step. The KEF X300A is a good example: small, affordable, active design, placement flexible, includes a DAC (just add a wireless connection). Better (and more costly) examples of all-in-one speakers exist (Quad 9AS, AVi 9RSS). The Vanatoo Transparent One is a 'lesser' example but importantly less expensive. Amphion is an excellent example of crossing the lines between studio, life-style, and up-scale home audio with their small 2-way passive speakers. Are these world beating technologies? No, not quite, not today. But it is the direction I believe the industry needs to move in and gives the 'outsiders' stepping stones to make the journey. Unfortunately the past has indicated that this market is extremely slow to embrace this kind of 'compromise'.
There are no brick and mortars for us to take our children to go here cool stuff, and our own main rig hi-fi systems are of no interest to our kids. Back in the day we had little choice but to crowd around the ONE tv in the house, or listen to "dad's stereo". Now our kids have the entire universe of theirs to listen to portable music, portable video, portable social networking, etc. Net/net, there is no farm system anymore.