ProSource Dealers Weighing Wireless Multiroom Audio System Options

The array of potential challengers to Sonos was evident as ProSource dealers met with a broad assortment of suppliers. While Navvo’s Voco, Wren Sound Systems and Cambridge Audio pitched retailers on streaming devices, Lenbrook’s Bluesound, Samsung’s Shape and D&M Group’s new HEOS were peddling full-fledged multiroom audio platforms. Even those technologies that weren’t present, including Apple’s Airplay, Bose’s SoundTouch, DTS’ Play-Fi, Sonos and Wireless Speaker & Audio (WiSA), were on the minds of retailers. D&M is expected to unveil its wireless plans in June, but dealers briefed on them said the plan was put together using acquired technology. Kevin Zarrow, D&M vice president-marketing and product development, wouldn’t comment.

"It’s just like the headphone business, only more complicated because this product has some closed systems like Sonos and then there is DTS’ Play-Fi, Airplay, WiSA and everything in between,” said ProSource Co-President James Ristow. “There are many technologies, more than people could possibly digest. Will there be casualties? Of course there will. But there will be clear winners as well. The challenge for our retailers is you have to be cautiously exploring the alternatives without getting crazy because the difference between bleeding edge and leading edge is a fine line."

With the national chains dedicating an increasing amount of shelf space to wireless audio this year -- Best Buy is said to have given 18 running feet to the category, cutting back on its assortment of audio components -- ProSource dealers are being more strategic. Bjorn’s has a Sonos store-within-a-store and Lenbrook’s Blue Sound system, but is revamping a demo room to focus on wireless, said President Bjorn Dybdahl. Listen Up carries Bluesound and Sonos, and has sprinkled in Cambridge Audio gear, said President Walt Stinson.

"It’s a culling period with streaming,” said World Wide Stereo CEO Robert Cole. “DTS can be a huge competitor. Lenbrook’s Blue Sound and Denon are going to have their following, but they're not of the same scale as Sonos. There has to be some shake out. No one is complaining about Sonos and saying they are looking for alternatives."

With a broad selection of wireless audio systems, many of which aren’t compatible, coming to market, some dealers we surveyed were concerned the technology risks confusing the consumer, potentially cutting into sales. Many ProSource dealers are hedging their bets, initially focusing on a small number of suppliers before deciding whether to expand.

"It’s going to get confusing and that is my fear,” Dybdahl said. “There are some things I would like to take on, but I'm not sure it’s the right thing right now. The reality is how many of these things that are not compatible will survive and then where are you going to go?”

Other dealers like Modia Home Theater are waiting for an install base to emerge before plunging into the market with its custom business, said CEO Mihir Modia. Modia carries only a small number of streaming devices, focusing instead on high-end speakers and other premium gear that’s out of the reach of some national chains, Modia said. It carries Sonos largely because its sales staff is “comfortable” with it, but it’s “a retail product and I don’t think it requires a specialist,” Modia said. Many streaming devices are designed as plug-and-play products, and “if Target can sell it, I'm not so sure it requires a specialist,” he said.

DTS’ Phorus Play-Fi signed licensing deals with several vendors including Nortek’s custom-focused Core Brands unit for its being an open platform compatible with Android and iOS and its ability to deliver lossless audio in a multiroom, multispeaker setup. Core includes SpeakerCraft, Elan and Niles brands. Play-Fi can transmit to multiple speakers at the same time with tight synchronization of less than 1 millisecond latency, DTS has said. Wren Sound Systems is readying a second-generation of its Play-Fi-compatible V5 for fall release as it adds more services, said CEO Mike Griffin.

In a bid to attract ProSource dealers, wireless audio vendors at the meeting sought to differentiate themselves from the competition through software and services. Navvo’s Voco V-spot speaker and V-Zone Plus streaming box are adding Spotify and a deeper integration with Google’s YouTube that allows a consumer to tie directly into a YouTube account rather than using a generic application programming interface, said Eric Schroeder, Voco director-quality assurance. The changes are part of a new user interface app Voco launched for iPad and is readying for iPhone and Android smartphones within 90-120 days, Navvo CEO Wade Fenn said. The Voco streamers also use a controller app built with Nuance Communications’ technology for voice commands that can be used to manage music and video as well as Internet services including Pandora and TuneIn.

Voco is readying a 75-watt amplifier for delivery this year along with a V Stick USB that can plug into a speakerbar’s optical or HDMI connector to access Voco services, Fenn said. Navvo also developed a means for integrating its technology into soundbars, and is having a “number of licensing discussions” with potential partners, Fenn said. Navvo wants to expand retail distribution of its Voco products, having recently landed in Micro Center stores and launched discussions with Systemax and Best Buy’s Magnolia Design Centers, Fenn said. With the Spotify agreement, Navvo also expects to add distribution in Australia, where Spotify is popular and the company signed a distribution pact with QualiFi in 2012.

"Retailers are not getting rid of their Bluetooth products to add Voco, and they are bring us in because we have a different story and can add some value” through alliances with Pandora and Spotify, Schroeder said.

ProSource Meeting Notebook

Cambridge Audio is readying a retail shelf display for the Minx Go ($179) to demonstrate the features of the streaming device that sold 20,000 units in the U.K. during the holiday season last year, said Daniel Kelley, a consultant with Levin Consulting, which represents the company in the U.S. Cambridge will expand its Bluetooth speaker line in September with the addition of the G5 ($279) that has a five-driver system with a dedicated subwoofer, integrated DSP, near field communication (NFC) for pairing devices and a 24-hour run time from a lithium ion battery. As with other models in the line, the G5 uses CSR’s aptX coding technology. Cambridge will deliver the G2 ($169) mini Bluetooth speaker in November, which switches to four drivers including a rear-firing bass radiator, a 10-hour run time and NFC. Listen Up! and Crutchfield have been selling Cambridge products in the U.S. “To get critical mass we need to get wider than specialists, but do we need to go to Target or Walmart? Probably not, because we won’t want to go that broad, Kelley said. In addition to its Bluetooth speakers, Cambridge is developing a Sonosesque multiroom audio product, said Kelley, who declined to disclose details.

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ProSource handed out its supplier awards, with D&M Holdings taking overall vendor of the year honors a second straight time. ProSource also named D&M its top legacy audio supplier, while Harman International took the honors in the new audio category. Samsung grabbed the award in video, while AudioQuest nabbed it in furniture and accessories.