Marc Rushton implores the audio industry to keep their eyes on the prize – namely customers who are buying hi-fi right now…

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"Barco’s stated strategy centres on “digital, active and connected products” and “portfolio rationalisation”."

This could really represent a major fork in the road: will NAIM and Focal continue to exist as stereo hifi brands (in a tough market place), or will Barco have these companies focus R&D on home a/v tech, and integrate the brands to add audio to Barco's video core brand.

Or will Barco quietly pivot both brands to R&D on home a/v products while maintaining (the slipping) foothold in the hifi segment?

"Barco is spending €135 million from its own balance sheet to add €110 million in annual revenue. This 1.23x revenue multiple could be said to be expensive for a company with no consumer track record [...]"

Yikes that is a lot of risk. I suspect that Focal represents the much larger revenue stream here while NAIM has slipped dramatically.

"Barco is not building an audio empire; it is buying a premium audio group to complement its existing visual technology business. The fit is narrower, more targeted, and arguably more logical than a medical device company deciding it should own Denon."

Yes, and again: it does appear that the stereo segment is neither Barco's focus nor expertise market.

One does wonder have Barco kicked other tyres out of industry sight, e.g. Krix or other companies with profound AV R&D. That would appear a much better fit than a potentially rupturous transformation of Focal/NAIM.

my 2c for what I saw in recent years: Focal's design focus and pricing was pivoting into prestige lifestyle market (and away from tough audiophile competition)—certainly with the recent release of the actives. But it is still a very tough market with KEF's range, fantastic quality at much lower cost.

IMO Naim's visual design does not correspond to post-2000s aesthetics and home interiors anymore, and the problematic inter-connectivity with other brands' system components has quietly eaten into its own market share.

/2c

Thanks for the article, a really good read.

Edited Friday at 04:24 AM3 days by Steff