Labels Cite Limited But Growing Catalogs of Hi-Res Audio Titles

While the audio industry settled on a broad collection of “descriptors” earlier this month (CED June 13 p7) to define hi-res music files for digital retailers, translating the benefits of high-resolution music to a consumer base accustomed to MP3 recordings won’t come quickly or easily, panelists said during a CE Week hi-res audio session.

Content remains an issue, panelists said. Jim Belcher, vice president-technology and production, Global Digital Business-Universal Music Group, managed expectations, calling his label’s hi-res efforts still in the “early stages.” Universal has signed niche retailers including Acoustic Sounds and HDTracks, but bringing on mainstream labels and services is key to driving the category. On whether major labels or digital subscription services have shown interest, Belcher said: “Formally, no.”

Although hi-res audio is “on their radar,” Belcher said of subscription music services, “certain things have to happen first” before subscription partners can get involved in hi-res. Hi-res chipsets have to work their way down to smartphones -- which has started to happen with the HTC One Harman Kardon Edition and LG G2 -- and they must be “ubiquitous” before subscription services become interested, he said.

Warner Music has a “limited” but growing catalog of hi-res offerings, said Howie Singer, chief strategic technologist. Warner’s hi-res roster has good performers, “relative to the size of the catalog,” Singer said, and he expects Warner hi-res revenue to be higher this year than last from “more stores and more revenue per store."

Singer said Warner’s hi-res retailers have been focused on the traditional audiophile “that has a particular way they like to listen to music” and has been willing to go through the steps required to get hi-res music on their sound systems. Since the typical consumer listens to music on a smartphone, Singer said, “We need to find a way to make it easier for music lovers beyond the audiophile.”

Higher bandwidth and a more robust cellular network have enabled Scandinavian music service WiMP to deliver lossless, although not hi-res, music streaming in CD quality to subscribers in Denmark, Norway, Sweden, Germany and Poland, Singer said. “We're already seeing services starting to try to differentiate themselves on quality in places where streaming is more prevalent.” Belcher said bandwidth limits could hamper delivery of hi-res streams as files become larger.

Representing audio engineers and producers, Maureen Droney, senior executive director of The Recording Academy, said more notable audio producers have been working in hi-res “for a long time” and are “huge advocates” for it. “They find it hard to believe that everyone isn’t on board with hi-res,” she said. But in a survey recently commissioned by The Recording Academy to find out if members were recording in hi-res -- and if not, why not -- Droney said engineers have “real considerations” rooted in the past that have held back decisions on advancing to hi-res recording. She cited storage “that used to be more complicated,” and increased bandwidth as issues that have stood in the way. Dealing with “zillions of tracks” can be more difficult in a hi-res recording, too, she said. Older software has limited hi-res recording for some engineers, too, she said. Droney also cited the chicken-or-egg dilemma. “They didn’t know why they should make the extra effort when they didn’t know where” hi-res music was going to go, she said. That’s starting to change, she said.

Onkyo has been supporting hi-res audio for the past three generations of its audio components, but getting across the benefits of higher quality audio at retail is “a challenge,” said Paul Wasek, national marketing and product planning manager. Current retail trends don’t translate to comparison testing, Wasek said. Finding a way to convey the sound improvement to consumers is essential for hi-res to advance, “because no one will take your word for it that it sounds better,” Wasek said. Onkyo is working with retailers to come up with ways to attract customers into stores so they can do A-B testing. One idea that has been tossed around is having listening parties, said Wasek.

Sony is stressing a lifestyle approach to hi-res audio that cuts across the various ways consumers listen to music. That also includes educating retailers, said Aaron Levine, product marketing manager-Sony Home Audio. “A lot of them are still unfamiliar with what the benefits are.” Whether through loudspeakers or headphones, music via hi-res audio “comes to life” and “becomes an experience,” Levine said, saying demonstrating that experience is an opportunity for retailers to “engage” consumers and bring them into the store.

On what has to happen for the hi-res market to succeed, panelists gave a range of issues. Droney said getting consumers to experience hi-res audio is critical because “research shows that people can hear the difference.” Singer said simplicity is a top concern, because “the consumer won’t go backwards and give up the convenience they've become used to” with digital music. At the same time, Singer said, files are bigger with hi-res “and that makes delivery slower.” The industry needs to “find a way to fit into that lifestyle that people already have for the larger group of consumer,” Singer said.

Levine of Sony said making it easy for consumers to experience hi-res music -- especially on smartphones and headphones -- is necessary for widespread adoption. Wasek said all players need to have the same message about what hi-res audio is, so consumers aren’t confused. John Jackson, vice president-A&R and content development, Sony Music Legacy Recordings, spoke of standardization and said, “Once we figure out what it is that we're making, then a lot of other stuff that will make it a rich experience for consumers will fall in line.” Jackson expressed concern over the industry “chasing” different formats rather than focusing on the bigger picture. Labels need to have hi-res catalogs prepared for a hi-res future, which he said Sony has been doing through its catalog archiving process.