[toocool4]

Okay let’s agree to disagree, all we can do is wait and see how things pan-out.

Stay safe everyone and keep enjoying you music.

[Letitroll98]

All audio, no matter the ultimate price tag, is discretionary spending and is the first to be cut in tough economic times by all income classes.  Large corporations use the stock market for funding, the Sony's, Marantz's of the audio world are a different model than proprietorships like Bryston, which I believe is what we're talking about here.  For these manufacturers, at the low end you need to sell a lot of units, at the high end you sell through personal relationships, the vast middle ground sells to whatever some guy can talk his spouse into putting on the credit card, but success and survival is the same for all.  Manufacture lean, lean, lean.  Maintain strong cash reserves.  Market continually, no matter what the economic conditions are.  Companies that do this will survive.

[gberger]

Economics lesson 101:
"When marginal cost equals marginal revenue, you're making money."

[CanadianMaestro]

Okay let’s agree to disagree, all we can do is wait and see how things pan-out.

Stay safe everyone and keep enjoying you music.

  You too. All in good fun and enjoy the musik -- at home or wherever.

[genjamon]

The hollowing out of the middle class in the Great Recession is what really kicked the ultra-high end cost bracket of audio products into gear. And the accelerated concentration of wealth in the last ten years instead of middle class wage growth is what has sustained that shift. I would expect the coming mega recession to simply accelerate that already strong trend. The mega cost no object products trend will accelerate at the expense of the sub $10k product price range. The sub $1k product market will also take a hit, but will begin to recover when the economy does. In the meantime, many firms of all sizes will go under if they can’t economize to ride out the storm. Many will shift upmarket from where they’re at.

But I’m not so pessimistic about the next generation of consumer interest. Maybe it’s because I’m an older millennial and I see a fair amount of interest in the millennial generation in quality audio. No, it’s not like when every young person needed a turntable and receiver at home. But it’s still a large and growing market. It’s just that they’re not yet ready to buy into the $multi-K per separates market. But if we had a more equitable wage distribution for middle class jobs, there would be a much stronger market for reasonably priced high end audio. The big question in my opinion is whether the economy we build on the backside of the looming massive recession (or depression?) will be more equitable, or will just provide retail and coffee shop barista minimum wage jobs catering to the wealthy. You can’t pay down student debt, pay rent, and invest in audio, all on minimum wages.

[R. Daneel]

All audio, no matter the ultimate price tag, is discretionary spending and is the first to be cut in tough economic times by all income classes.  Large corporations use the stock market for funding, the Sony's, Marantz's of the audio world are a different model than proprietorships like Bryston, which I believe is what we're talking about here.  For these manufacturers, at the low end you need to sell a lot of units, at the high end you sell through personal relationships, the vast middle ground sells to whatever some guy can talk his spouse into putting on the credit card, but success and survival is the same for all.  Manufacture lean, lean, lean.  Maintain strong cash reserves.  Market continually, no matter what the economic conditions are.  Companies that do this will survive.

An excellent, constructive post! Thanks!

[R. Daneel]

The hollowing out of the middle class in the Great Recession is what really kicked the ultra-high end cost bracket of audio products into gear. And the accelerated concentration of wealth in the last ten years instead of middle class wage growth is what has sustained that shift. I would expect the coming mega recession to simply accelerate that already strong trend. The mega cost no object products trend will accelerate at the expense of the sub $10k product price range. The sub $1k product market will also take a hit, but will begin to recover when the economy does. In the meantime, many forms of all sizes will go under if they can’t economize to ride out the storm. Many will shift upmarket from where they’re at.

But I’m not so pessimistic about the next generation of consumer interest. Maybe it’s because I’m an older millennial and I see a fair amount of interest in the millennial generation in quality audio. No, it’s not like when every young person needed a turntable and receiver at home. But it’s still a large and growing market. It’s just that they’re not yet ready to buy into the $multi-K per separates market. But if we had a more equitable wage distribution for middle class jobs, there would be a much stronger market for reasonably priced high end audio. The big question in my opinion is whether the economy we build on the backside of the looming massive recession (or depression?) will be more equitable, or will just provide retail and coffee shop barista minimum wage jobs catering to the wealthy. You can’t lay down student debt, pay rent, and invest in audio, all on minimum wages.

Yes, true. All that one can do is buy a pair of headphones - which doesn't make you any less passionate about music. The headphone market might be hit the least with this crisis.

I hope audio industry doesn't suffer the Japanese syndrome of the 1990. They never recovered from that.

[toocool4]

You too. All in good fun and enjoy the musik -- at home or wherever.

Thanks I have been working from home since March 12th, I am loving it as my office is now my listening room. Catching up with records I have bought lately but not had a chance to listen to.

I am making the best of the situation.

[Early B.]

The wealthy will continue to spend on audio, despite an economic downturn. Why? Because they can. Especially when they're bored to death due to sheltering in place. In fact, this is an opportune time to buy high end audio gear because you can grab great deals. If buying used, they'll snag deals from middle class folks who need the cash.

[WGH]

The death of Hi-End audio has been predicted for a long, long time but somehow the numbers of companies producing excellent sounding equipment is always increasing.

At first it was home theater that was going to kill the stereo

Jan. 3, 1996
Lights in a Box by Steve Guttenberg
https://www.stereophile.com/features/68/index.html
"Steve Guttenberg has been a projectionist for 21 years, working in movie theaters and (from 1984 to 88) at WPIX-TV in New York City. He has 15 years' high-end retail experience at Sound by Singer, also in New York, and since 1988 has served as a producer for Chesky Records.

"The high-end community is a tiny, fragile island---albeit an influential one---in the vast consumer electronics/entertainment world. This island was left mostly undisturbed by the larger outside world until the early 1990s, when Home Theater became the new cause célèbre of the electronics biz. This market has grown so quickly that it may endanger music-only systems, which I believe are what the overwhelming majority of Stereophile readers enjoy on a regular (daily) basis."


Then in 2007 the number of audiophiles were declining
https://www.stereophile.com/content/are-numbers-audiophiles-increasing-or-decreasing-why




And then (once again) in 2013 is was the convenience of portable music along with headphones

Regarding the death of the home stereo system by Stephen Mejias
https://www.stereophile.com/content/regarding-death-home-stereo-system

"In the last 15 minutes, about 25 people have sent me a link to this article, so now I'll share it with you. For better or worse, whether we're discussing velour suits or Compact Discs, any discussion regarding death is most likely premature. I call for a death to the discussion of death."

We are Zombies, We Will Never Die

[2bigears]

  no jobs, cash or hope.....  haha.  Pretty good.  Food and clean water will become what we need the most.
              This could be a political thread so very easy. End stages of capitalism points out trickle up to a full on tsunami up of $$$$$.... common peeps have lost control of everything. Corporate governments and big Business got it all. ❤️❤️🌎❤️❤️    One very good thing about this is 🌎 Breaths a bit better.  It's sad.

[rollo]

   And CD the death of LPs. A bit extreme no ?


charles

[OzarkTom]

Was it not that home theatre closed many of the B&M stores?

[charmerci]

Outside of the most likely upcoming economic downturn, my belief is that the hi-fi audio industry will more or less die with this generation (the last being in their 40's now) with the exception that hi-fi will be integrated into faster, smaller chips which will eventually bring hi-fi sound to masses much less inexpensively than now.

[rollo]

Was it not that home theatre closed many of the B&M stores?

  The economy is the biggest threat. No work no pay. Before the Corona business was VG.  High rent, High prices another. Lifestyle IMHO had the biggest impact. We have seen the young go to simple portable music, then graduate to a better and better home system. The problem though are the years in between.
  Paying College debt, saving for a House, getting married, having Children ALL affect our hobby. So hope for a strong economy and a long lasting good paying job.
   Until the Virus we were on our way with a great economy and jobs.  It will come back.


charles
   

[Stu Pitt]

Was it not that home theatre closed many of the B&M stores?

One could easily argue it saved B&M stores. Many have told me if it weren’t for custom installation of home theater equipment, they’d be out of business. It’s easily the bread and butter of a lot of places.

[rollo]

One could easily argue it saved B&M stores. Many have told me if it weren’t for custom installation of home theater equipment, they’d be out of business. It’s easily the bread and butter of a lot of places.

  Spot on could not agree more.


charles

[Wind Chaser]

B&M stores full of home theater are of no value to someone shopping for 2 channel high end audio.

[CanadianMaestro]

My local dealer has a separate "division" and staff to handle home theater installation. Apparently, it generates $$$ for them, but I don't know if it's more than 2-ch gear sales. I suspect on par.

[mix4fix]

   And CD the death of LPs. A bit extreme no ?


charles

Vinyl coming back.

Cassettes coming back.