Opining On Audio
Have flat-panel price drops opened up a spot for the audio add-on sale? With the money consumers are saving, are they spending on audio?
Fabiano: Customers are adding more audio because of this. They are taking the budget that used to be tight when plasma TVs were $5,000 or $6,000 for a 42-inch standard-definition set. Now, they’re $3,000, and they’re pleasantly surprised. And it leaves money on the table for audio—this money is just burning a hole in their pockets—and they think, ‘What else can I get?’ And then they also get music servers and media centers, and other items they did not think about getting originally.
Wexler: Lower pricing on flat panels gives people a little bit bigger budget to invest in audio. The same person who was going to invest $7,000 on a flat TV still invests $7,000 but maybe $3,500 of it on a panel rather than $4,500, and then we have some more money to work with on the audio system. That could probably account for our increase in audio sales.