An introduction to Hi-Res Audio

An introduction to Hi-Res Audio
Simon Cole (7digital)
Ben Drury
Pete Downton
Bob Stuart (Meridian Audio)
January 2015
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Simon Cole
CEO
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2014: A Great Year for British Music
§  UK, US and Sweden the
world’s only net exporters of
music
§  Top 10 selling albums in 2014
from home-grown talent
§  14.8bn streams in 2014; 560
for every UK household
§  The UK leads in creativity
and technology
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2014: The year Hi-Res breaks through
§  Launches from
§ 
§ 
§ 
§ 
§ 
Onkyo
Technics
Pono
Tidal
HD Tracks
§  2015 will test consumer
demand and business
models
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Today
§  A background on Hi-Res
§ 
§ 
The music industry view
§ 
The technology
§ 
The financial models
Introducing a new streaming technology: MQA, a British
technology which could change the streaming world
§ 
Introduction from Bob Stuart
§ 
Demonstration of the MQA difference
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Ben Drury
Founder & Chief Strategy Officer
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A brief history of digital music
In the beginning…
•  The first MP3 player MPMan F10 –
Saehan Systems
•  Launched in March 1998
•  Held up to 8 songs at low quality
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Apple enters the market
•  The first Apple iPod
•  Launched in October 2001
•  Held up to 20,000 songs at low quality
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Convenience beats quality
Broadband arrives and accelerates
Gross Profit ($m)
Source: Ofcom April 2014
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Storage costs plummet…
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Processing speeds grow exponentially
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Tipping point reached.
Convenience AND quality
Pete Downton
Chief Commercial Officer
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Who cares if the music industry is getting its audio act together?
"We're barely getting five percent of the what the
artist recorded when we listen to music these days"
David Crosby, Esquire Magazine Sept 2014
Artists
“I was listening to a famous Japanese artist
in Hi-Res when I realised I could hear every
breath and was much more engaged. I
realised that a good enough listening
experience as MP3 is, it wasn’t enough
anymore”
Sony CEO Kazuo Hirai
Brands
Fans
“more than half of all digital
music consumers believe they
are missing something but
they've never heard the
something”
Audiencenet Research, 2014
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The artists themselves are the most powerful advocates for quality
Worldwide Headphones Market
Shipments (M Units)
400
300
200
100
260
286
309
327
341
2012
2013
2014
2015
2016
0
Headphones Average Price Year-on-Year Growth:
USA
50%
0%
-50%
-7%
2009
16%
2010
13%
2011
11%
2012
10%
2013
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Consumer Electronics Show 2015
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Wireless audio products expand the digital music opportunity
100
80
+23%
74.6
72% Hi-Fi Systems
60.5
Shipments (M units)
60
+36%
44.6
Dedicated Docks &
96% Wireless Speakers
+62%
40
+113%
20
% Share of category
Shipments in 2016
27.5
12.9
77% A/V Receivers
88% Soundbars
0
2012
2013
2014
2015
2016
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Is this just the industry (and 7digital) promising jam tomorrow?
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Hi Res
Hi-Res music download store in
multiple markets, for one of the
world’s leading audio equipment
brands.
Live in US, Germany and the UK.
24-bit lossless audio.
•  Playlist driven, ondemand music
service
•  Hard-bundled with
device
•  Launching imminently
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Hi Res
•  Playlist driven, ondemand music
service
•  Hard-bundled with
“ 2,000 live shows, 37
device
albums, more than 85
•  Launching imminently
million record sales and five
drummers ”
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We sound better!
The world’s first B2B platform to offer MQA (Master Audio
Authenticated), the new standard in hi res streaming and download.
The world’s largest 24-bit catalogue from all majors, key independents
and publishers.
Entire catalogue in 16-bit FLAC and standard quality AAC/MP3.
Partnerships with leading audio pioneers Meridian, Onkyo, Technics and
Dolby.
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Bob Stuart
Co-Founder of Meridian Audio
For further information on MQA please see:
www.musicischanging.com
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