Home Theater View

Gibson Buys a Big Chunk of Onkyo

Gibson is looking to diversify away from musical instruments, and is buying Onkyo USA. Onkyo has been doing reasonably well in the shrinking A/V receiver market - I own an Onkyo NR3007 myself - but I just can't figure out why Gibson decided to invest in the incredibly challenged A/V industry rather than, say, ANYTHING ELSE. Here's the press release:

 Gibson Buys Stake in Onkyo Japan and Majority Interest in Onkyo USA

Forms Strategic Alliance to Take Consumer Audio Experience to a New Level

Nashville, TN. January 04, 2012: As part of its continued diversification into the music and audio lifestyle arena, Gibson Guitar Corp., the world’s premier musical instrument manufacturer, today announced a strategic partnership with Onkyo Corporation, a worldwide leader in consumer audio. With a reputation of excellence for high quality audio equipment and home theater systems, Onkyo offers Gibson’s newly-formed Pro Audio Division substantial technology resources. Gibson will provide Onkyo with its marketing resources and expertise. The result will be an ability to deliver a far superior audio experience to the consumer who has become more and more used to hearing only inferior compressed music through inexpensive ear bud headsets.

Through this venture, Gibson will acquire a majority of Onkyo USA (Onkyo’s exclusive distributor for North America and a distributor for Central and South America) and become the second largest shareholder in Onkyo Corporation. Gibson will make a strategic investment in the company, and Gibson Chairman and CEO Henry Juszkiewicz will be given a position on the Onkyo board of directors. Likewise, Onkyo will invest in Gibson, and CEO and President Munenori Otsuki will take a position on the company’s Board of Directors. Together, the two entities will form a Hong Kong-based joint venture focusing on design and development of unparalleled consumer audio products. Through this alliance, Onkyo USA becomes the latest addition to the Gibson Pro Audio division, which already includes KRK, Cerwin-Vega! and Stanton.

“Onkyo makes some of the world’s best audio equipment, and this partnership will give Gibson the ability to bring a deeper and more enhanced audio experience to music lovers around the world,” says Juszkiewicz. “While people may be listening to more music, they are listening to it primarily in a severely compressed format. The aural disparity between a real system and compressed sound is vast, and as a result, they are simply not hearing tremendously rich sounds. With Onkyo, our goal is to bring the same exceptional experience artists demand in the studio to a larger consumer base.”

“This partnership has significant positive implications for Onkyo as we are always seeking ways of creating new value,” says Otsuki. “Gibson is a leading global company with a massive fan base, best-in-class products and superior marketing skills. Coming together in this way opens the door for amazing opportunities for both companies and, more importantly, fans of Onkyo and Gibson.”

All agreements are subject to Japanese regulatory clearance, negotiation of definitive agreements and financing approvals of lenders.

ABOUT GIBSON GUITAR CORP.
Gibson Guitar Corp. is known worldwide for producing classic models in every major style of fretted instrument, including acoustic and electric guitars, mandolins, and banjos. The Gibson Les Paul Guitar is the bestselling guitar of all time and is a tribute to the late, famed musician of the same name. Collectively, the Gibson Robot Guitar, Gibson Dark Fire, Gibson Dusk Tiger and the Gibson Firebird X represent the biggest advances in electric guitar design in more than 75 years. Through the Gibson Foundation, Gibson Guitar Corp. has become equally known for its philanthropic efforts on behalf of music, education, health and human services. Founded in 1894 in Kalamazoo, MI, and headquartered in Nashville, TN, since 1984, Gibson Guitar Corp.’s family of brands includes Epiphone, Cerwin-Vega!, Dobro, Kramer, Onkyo, KRK Systems, Steinberger, Tobias, Echoplex, Electar, Flatiron, Slingerland, Stanton, Valley Arts, Maestro, Oberheim, Baldwin, Sunshine Piano, Take Anywhere Technology, J&C Fischer, Chickering, Hamilton, Wurlitzer and Gibson Pro Audio. Visit Gibson’s website at www.gibson.com. Follow Gibson Guitar at www.facebook.com/gibsonguitar and www.twitter.com/gibsonguitar.

ABOUT ONKYO
Since 1946 Onkyo has been passionately committed to developing audio products that deliver uncommon performance, quality and value. Bundling proprietary technologies and innovations with other sound-enhancing exclusives, Onkyo continues to created award winning products that are lauded by many of the industry leading audio publications. The company's philosophy is to deliver products that are superbly designed and built to a consistently outstanding standard of excellence. The results can be seen in the obviously high quality of any Onkyo-manufactured product, even before it is turned on. Visit Onkyo’s website at www.onkyousa.com. Follow Onkyo USA at www.facebook.com/OnkyoUSA.

Deal Alert: Belkin Home Theater Surge Protector

Buy.com has the Belkin PureAV PF30 for a great price ($60). I have this unit's big brother (the PF60), and while I can't claim to hear any difference in the filtered electricity, a good quality 8 outlet surge protector usually costs a lot more than $60 (this unit originally retailed for $199).

Note: I get no kickback if you click on the link above. Consider this a public service announcement.

Onkyo Announces First MHL A/V Receiver

There is no indication of price or availability, so this "announcement" is almost comically vague, but it is interesting nonetheless. For the uninitiated, MHL is a standard that aims to simplify getting content from mobile devices (smartphones and tablets) while keeping the devices charged. The MHL folks were smart enough not to come up with their own unique connector/cable; instead it uses the HDMI or microHDMI connectors, and includes HDMI backwards compatibility. It looks like Onkyo's reciever will pop up windows showing you what content is available on the device, allowing you to easily push that content on to the TV. That doesn't seem like an earth-shattering innovation, but given the dearth of MHL-compliant televisions on the market - let alone installed in homes - it could be useful.

Of course, you'll need an MHL-capable phone as well. Here the news is good; there are only a handful of phones with MHL, but one of them is extremely popular, Samsung's Galaxy SII, and most of HTC's latest phones support it as well, including the EVO 3D at Sprint, Vivid at AT&T, Rezound at Verizon Wireless, and the Sensation at T-Mobile.

My Holiday Gift Guide is Up

My Last Minute, Non-Obvious Holiday Gift Guide is now up over at Slashgear.com. 

Happy Holidays,

-avi

quick review: beats by dr. dre

Question:

My son is here with me today and... he brought up Beats headphones.  I was wondering if you’ve seen/have them and your thoughts.  He’s sold on how “cool” they are but I’m curious if they’re all hype or not.

I get in a lot of headphones but hadn't gotten extended time on the beats until HP gave me a pair to test with its new TouchPad tablet (the TouchPad has a special Beats Audio mode. I tested it with the mode enabled and disabled, the difference is too subtle for most people to notice, but it’s a nice branding initiative).

The beats are certainly a style icon, and since most people seem to choose them based on looks I was surprised that the sound quality is quite good. The bass is excellent (boosted but still natural – a tough combination to pull off), the midrange and highs are fair, and there is only some lightly audible distortion in the midrange from the noise cancellation (all active noise cancelling headphones have some distortion, as quite literally that’s what noise cancellation is). They are closed over-ear headphones with mandatory noise cancellation – they don’t work without batteries, and there’s no way to turn the cancellation off. The noise cancellation itself is very good, though not as good as Bose's QuietComfort line.

Overall, I still prefer a good pair of passive in-ear headphones from etymotic, Shure, or Ultimate Ears – especially if you can get custom earpieces, though that usually means spending more than the $300 or so that the beats cost (except when it doesn't). Sennheiser makes slightly better sounding headphones at the same price, and Bose has better noise cancellation around the same price. However, the Sennheisers do not have have noise cancellation, and I think most people might still prefer the Beats for bass-heavy music regardless. (Disclaimer: I haven’t gotten in the new Bose QuietComforts for a full review, so I can’t say which has better overall audio, but the noise cancellation on the Bose is the best I’ve heard when I've tried them on at retail and in airports).

Bottom line: while the beats would not be my first recommendation for all types of listening,  I can easily recommended them, and they are particularly good if you listen to a lot of hip-hop and dance. If you want the beats' style you can be comfortable that you aren’t throwing away your money on hype, as they do offer quite good sound overall.

Selling CE to Women: Two Views

CEPro has a new mini-article by Molly Gibson with four tips for selling custom installed home theater products to women, and Julie Jacobson links to an article of hers on the same subject.

Here's the summary:

Molly thinks that women need a soft sell based on listening to her needs and discovering how she thinks that the system will be used. She also rails against pushing features and future-proofing that goes beyond the buyer's needs, and pushes style as a critical part of the woman's buying criteria.

Julie thinks that this has nothing to do with selling to women and everything with not being a bad salesperson. Every man would like a system tailored to his actual needs, would prefer not being condescended to, and cares about style. Do this, and both men and women will be happier.

That is certainly true, but... a hard tech sell does seem to work on many men. Also - speaking from personal experience here - some men easily succumb to featuritis. (Not all. Some. And I agree with both writers that focusing on what the product needs - and just what the product needs - generally creates a better long term relationship with the product/vendor/service provider.) The emphasis on creating your sales pitch around design is also much stronger in Molly's pitch. In Molly's view, it isn't about whether the color matches or it's a nice minimalist design, but she suggests you start showing TVs by asking which bezel style they like and in-wall speakers by focusing on the type of grill weave. That's really quite different.

To borrow marketing from a (slightly) different industry, that's the difference between touting the BlackBerry Playbook for its dual-core processor and micro kernel architecture - while ensuring it ships in a beautifully understated thin case - and Apple touting the iPad 2 as "magical" and incredibly thin while also adding a dual core processor. One reason Apple has sold 25 million iPads and RIM has sold 500,000 PlayBooks is because Apple's marketing is aimed at women and men, and RIM's marketing uses the male-centric tech approach. Style-conscious men, to be sure, but manly men, who must have a micro kernel architecture in their tablet... whatever that is.

Roku Goes Retail

It certainly took them long enough, but Roku is finally graduating from online-only sales to retail. It wasn't doing too badly in the old business model - Roku's status as the least expensive and easiest streaming media box allowed it to rack up over a million units sold. Still, Roku always seemed something like a secret that only technically savvy people knew about - and that is not the target demographic for a product designed for simplicity. No, the ideal retail channel ought to be something like Target. Or Best Buy:

Roku XD player is available for purchase at Best Buy stores nationwide and at BestBuy.com. With up to 1080p HD streaming support, integrated 802.11n WiFi and Instant Replay the Roku XD offers unlimited entertainment choices and incredible value to customers. The Roku XD has a list price of $79.99 and is available at Best Buy stores and at BestBuy.com for purchase today. Roku players can also be found at other leading retail stores including BJ’s Wholesale Club, Fry’s Electronics and RadioShack.

Best Buy, Fry's, and the Shack. Well, the good news is that those stores are where a shopper goes if they want an inexpensive box to stream Netflix (or MLB or NBA or any of Roku's other content options). The bad news is that it won't reach consumers who don't know that they want an inexpensive box to stream Netflix (or MLB or NBA or any of Roku's other content options). Hopefully a successful run at Best Buy will get buyers at Target and Walmart interested, because their customers are who Roku should be chasing.