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post #211 of 14430
Quote:
Originally Posted by ethan7000 View Post

Loving the read and in hearty agreement with you on your points, but Beats is doing a pretty great job in marketing. And though I don't like them, I thank them for widening the headphone market, a feat which eventually affects people like me, companies like Hifiman and Audeze, and yes, even Schiit.
I agree with you completely, 3 years ago, Beats was the only brand I knew in the world of headphones. Having never owned headphones, I sincerely thought they were audiophile gear (I can see everyone bursting out laughing).

Also, not to take anything away from Schiit or Jason and the team, but Beats had two things going for them which Jason didn't have:

- A possibly much larger initial fund
- Celebrity backing (ownership?)

I think what Schiit has done with the tools they had is truly commendable.
post #212 of 14430

It's a telling example of how pop culture has such a powerful influence on the average young person. They see the glamorous image of some celebrities attached to some expensive item, and they flock to it.

post #213 of 14430
Quote:
Originally Posted by Jon-LF View Post


I agree with you completely, 3 years ago, Beats was the only brand I knew in the world of headphones. Having never owned headphones, I sincerely thought they were audiophile gear (I can see everyone bursting out laughing).

Also, not to take anything away from Schiit or Jason and the team, but Beats had two things going for them which Jason didn't have:

- A possibly much larger initial fund
- Celebrity backing (ownership?)

I think what Schiit has done with the tools they had is truly commendable.

 

The whole thing with Beats is a rather 'interesting' story.  Their transition from the (at the time) overly ambitious Monster to their own 'in-house' branding was a lot of dirty dirty politics.  Goes to show you the quote 'stay small; stay human' is very good advice at that.
post #214 of 14430
Quote:
Originally Posted by pez View Post

Love to hear the back story! smily_headphones1.gif
post #215 of 14430
Quote:
Originally Posted by Jon-LF View Post

Love to hear the back story! smily_headphones1.gif

It's a bit of a read, but it's still interesting nonetheless; even though it is about Monster and Beats.

http://gizmodo.com/5981823/beat-by-dre-the-inside-story-of-how-monster-lost-the-world
post #216 of 14430
Quote:
Originally Posted by pez View Post


It's a bit of a read, but it's still interesting nonetheless; even though it is about Monster and Beats.

http://gizmodo.com/5981823/beat-by-dre-the-inside-story-of-how-monster-lost-the-world


 OMG...Dr. Dre Beats was thiiiis close to being a planar!  Can't compute the likely scenario for that event right now...I am shocked.

 

Neverthless, great read with lots of real life valuable lessons I am learning in this thread.

post #217 of 14430
Quote:
Originally Posted by pez View Post


It's a bit of a read, but it's still interesting nonetheless; even though it is about Monster and Beats.

http://gizmodo.com/5981823/beat-by-dre-the-inside-story-of-how-monster-lost-the-world

What great insight into how these two money-grubbing companies operated. In the end, Monster would still continue to mass produce headphones associated with glitz and glamor, with absolutely no soul. Yet, both of these companies will continue to suck in tons of money from ignorant consumers who haven't the slightest clue what good audio products really are. The sad state of the audio and electronics market (or any market) reflects the level of intelligence of the masses. -endrant

post #218 of 14430
Thread Starter 
Quote:
Originally Posted by Jon-LF View Post


I agree with you completely, 3 years ago, Beats was the only brand I knew in the world of headphones. Having never owned headphones, I sincerely thought they were audiophile gear (I can see everyone bursting out laughing).

Also, not to take anything away from Schiit or Jason and the team, but Beats had two things going for them which Jason didn't have:

- A possibly much larger initial fund
- Celebrity backing (ownership?)

I think what Schiit has done with the tools they had is truly commendable.

 

Actually, to respond to the Beats phenomenon, yep, they are definitely dominant in the market, but I actually don't think it's largely due to their marketing--it's largely due to their distribution and celeb connection. 

 

In addition to the two items above (much larger fund--yes, by probably 100 to 1000x), and celebrity backing (do not underestimate the power of this), they also had one huge thing going for them: Monster was in every distribution channel, every store, everywhere--from Home Depot to Best Buy to high-end boutiques. That made it very, very easy to drop new, shiny product into what was essentially a vacuum at the time.

 

Couple that with mainstream press slavering for any way to talk about a celebrity, and the results aren't a surprise. If you're a headphone newbie, you see them everywhere in the press, and you can slouch into a Best Buy and pick them up today, and they gots lots o bass, boom! Big bang, big growth. 

 

The reality is that Beats revenue has been flat for 2 years. They're less exciting as a success story now, no matter how they flog the numbers. Remember LA Gear? They went from $5 million to $900+ million in a couple of years. Where are they now?

 

The reality is that we're in a transition time still--there is, as yet, no Coalition of Direct Manufacturers who know how to use the online channels and marketing to spread the word that (a) direct will always be highest value--always, no doubt about it, no arguing, full stop, (b) direct means better support, because you're working with the actual people who make the product and use it every day, not a dealer trying to juggle two dozen brands or an offshore call center, (c) direct means a direct connection between the company and the customer, for an even better understanding of the market. 

 

But I need to shut up now. The next chapter is the one that will get me bumped off by the distribution mafia...

post #219 of 14430
Quote:
Originally Posted by TK277 View Post
 

 

 

I can also see hip types wearing a 5-panel

 

 

  

 

Years ago I enjoyed a concert by Dick Dale (King of the Surf Guitarists for all you youngsters) and bought the shirt - which says in big letters

 

I'm a ********!

 

Oddly enough, I never wear it.

 

Back OT, this is great info - like auditing a course at Wharton where the prof is actually cool.

 

Thanks, Jason.

 

The Ragnarok will be my sixth Piece of Schiit, if it ever comes out...:veryevil:

post #220 of 14430
Quote:
Originally Posted by Jason Stoddard View Post
 

 

Actually, to respond to the Beats phenomenon, yep, they are definitely dominant in the market, but I actually don't think it's largely due to their marketing--it's largely due to their distribution and celeb connection. 

 

 

I wonder if Beats is going to try and pull off it's Olympic shenanigans again this year.

post #221 of 14430
Quote:
Originally Posted by SP Wild View Post
 


 OMG...Dr. Dre Beats was thiiiis close to being a planar!  Can't compute the likely scenario for that event right now...I am shocked.

 

Neverthless, great read with lots of real life valuable lessons I am learning in this thread.

 

Quote:
Originally Posted by tigon_ridge View Post
 

What great insight into how these two money-grubbing companies operated. In the end, Monster would still continue to mass produce headphones associated with glitz and glamor, with absolutely no soul. Yet, both of these companies will continue to suck in tons of money from ignorant consumers who haven't the slightest clue what good audio products really are. The sad state of the audio and electronics market (or any market) reflects the level of intelligence of the masses. -endrant

 

Agreed.

 

Sorry to throw this off-topic Jason; please continue :).

post #222 of 14430
Quote:
Originally Posted by Jason Stoddard View Post
 

 

Actually, to respond to the Beats phenomenon, yep, they are definitely dominant in the market, but I actually don't think it's largely due to their marketing--it's largely due to their distribution and celeb connection. 

 

In addition to the two items above (much larger fund--yes, by probably 100 to 1000x), and celebrity backing (do not underestimate the power of this), they also had one huge thing going for them: Monster was in every distribution channel, every store, everywhere--from Home Depot to Best Buy to high-end boutiques. That made it very, very easy to drop new, shiny product into what was essentially a vacuum at the time.

 

Couple that with mainstream press slavering for any way to talk about a celebrity, and the results aren't a surprise. If you're a headphone newbie, you see them everywhere in the press, and you can slouch into a Best Buy and pick them up today, and they gots lots o bass, boom! Big bang, big growth. 

 

The reality is that Beats revenue has been flat for 2 years. They're less exciting as a success story now, no matter how they flog the numbers. Remember LA Gear? They went from $5 million to $900+ million in a couple of years. Where are they now?

 

The reality is that we're in a transition time still--there is, as yet, no Coalition of Direct Manufacturers who know how to use the online channels and marketing to spread the word that (a) direct will always be highest value--always, no doubt about it, no arguing, full stop, (b) direct means better support, because you're working with the actual people who make the product and use it every day, not a dealer trying to juggle two dozen brands or an offshore call center, (c) direct means a direct connection between the company and the customer, for an even better understanding of the market. 

 

But I need to shut up now. The next chapter is the one that will get me bumped off by the distribution mafia...

Not to be argumentative, but I'm a bit of a marketing nerd. Marketing refers to all the processes that facilitate the exchange of value between producers and consumers.  The old-school adage is the "Four P's" of marketing, one of them being Place.  Place = distribution channels.  Another P = Promotion, which is what most people think of as "marketing," but it is only one aspect. Celebrity connection is one of many aspects lumped into Promotion. In other words, it's all part of marketing.  I could go into all kinds of marketing that Beats is currently engaging in, but it's irrelevant, and I don't want to derail this thread further. So on with the excellent book!

:beerchug: 

post #223 of 14430
You're seriously going to argue marketing terms with someone who started a now multi-million dollar marketing company? rolleyes.gif
post #224 of 14430

Another way to view all of this is…

 

Beats has introduced the whole idea of 'killer tunes' via headphones to the unaware masses.

 

Many (not all) will want something 'better' in due course.  Breakage, getting 'old' & worn out, hear a buddies other headphones, etc.

 

This creates a situation where better (and there is lots that is better) will be there, ready to fulfill that (to the masses) unexplored domain. 

 

So in one sense Beats has helped to significantly expand and increase the market.  

And since they could hire the expertise to create a serious set of headphones, they still need to be able to know WHAT and HOW, actually does make them 'better'.

 

And they may just be a flash in the pan, so to speak, a blinding flash to be sure, but we all know they are missing the 'serious chops' required to create enough that is 'better', to compete with other offerings.

 

And besides Dr.Dre is not who the newer kids are listening to anyway (now, he's to old) :popcorn:

 

JJ :atsmile:

post #225 of 14430
Quote:
Originally Posted by Jason Stoddard View Post

...

 

Couple that with mainstream press slavering for any way to talk about a celebrity, and the results aren't a surprise. If you're a headphone newbie, you see them everywhere in the press, and you can slouch into a Best Buy and pick them up today, and they gots lots o bass, boom! Big bang, big growth. 

...

 

What blows me away is that I can walk into the average electronics store, go to the headphone section, and what I find is mostly the stuff that people on this website would tell you to avoid - Beats, Bose, etc. And of course, those are the only cans with any kind of demo setup. A beats demo, a bose demo, maybe a sony demo, and that's it. Basically useless to me.

 

The only thing I can figure is that they are the highest markup items. I have quite literally given up on buying any headphones from places like Best Buy, Fry's Electronics, etc. I'd rather do my homework here and take an educated guess, and pick something up from Amazon.com.

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