| The
Netway
Or The
Highway |
| Commentary |
| Mike
Rofared |
| December
1999 |
We
Americans must
seem like such
an odd bunch
to our cousins
throughout the
world. To the
British, we
are nothing
less than
fickle and
stubborn at
the same time
-- so quick to
follow every
new trend or
product that
comes down the
pike, yet
reluctant to
let go of our
old-fashioned
values.
Similarly,
when compared
to our
counterparts
in the Pacific
Rim, who for
centuries have
been taught to
save for a
rainy day,
Americans seem
to be best at
spending, and
lots of it.
Yet, as odd as
it may seem to
our friends
abroad,
Americans
actually spend
less than
people in
other
developed
countries for
the basic
necessities of
life -- a car,
a home, a cell
phone or a
television
set. Which all
suggests that
such
contradictions
in the
American
character can
be best summed
up by an
overwhelming
obsession with
getting the
most for our
money. Doing
so, after all,
is as much of
a National
Pastime as
baseball,
bigger-than-yours
SUV's and talk
radio.
And
so it is that
this primarily
American ethic
– getting
the best
"bang for
your
buck" –
has now become
one of the
main reasons
shopping on
the Internet
in the good 'ol
US of A is
growing at
such a
break-neck
speed. Why,
you ask? Well,
to begin with,
whether you
are looking
for the latest
Pokemon
paraphernalia
(I'll pray for
you), or for a
new amplifier,
shopping on
the Internet
embodies those
qualities
which we
Americans like
so much: it's
easy,
convenient and
very, very
trendy (not to
mention the
fact that you
can do it from
the comfort of
your own home,
in your
underwear
even, and
without
leaving the
couch for too
long). Any
doubt about
the huge
effort to
capitalize on
the
convenience
offered by
Internet
shopping can
be resolved by
attempting to
track, even
for a single
day, the
amount of new
companies
popping-up
with "dot
com"
behind their
name.
Not
to mention the
fact that we
Americans have
now become
"the
busiest people
on
earth."
Whether we
actually are
or not is
really of no
matter, so
long as we
believe it is
so and the
"dot coms"
of the world
keep
reinforcing
that belief.
Moving well
past our
nascent stages
where
"fast
food" and
"instant
pudding"
was enough,
everything is
now fast and
packaged to
satisfy our
need for
convenience,
price and
instant
gratification.
For us
audiophiles
and home
theater
enthusiasts,
this
faster-is-better
mentality,
combined with
the power of
the Internet,
will soon
translate into
"real-time"
instant
upsampling,
instant
speaker
correction and
in a blink,
instant room
correction.
And
fortunately,
we will not
need
"instant
loan
approval"
to get it.
But
instant
anything isn't
any good
unless it is
also cheap.
Fast and
cheap. And the
faster and
cheaper, the
better. This
is how
products and
technology
which just a
year or two
ago were not
only
unavailable to
most, but
which also
cost, for
example, seven
or eight
thousand
dollars, will
soon be
available for
less than
seven hundred
dollars. Quite
simply, this
phenomenon can
be summarized
by what I like
to call
"The
Netway."
Ah, yes,
another
mystery solved
with a catchy
title, you
say? But then
explain to me,
if you will,
how the Netway
come into
being in just
a few blinks
of the
proverbial
eye?
My
answer is
simple. For
although it
has been said
that
"behind
every good man
there is a
good
woman," I
will say that
so it is true
that
"behind
every good
product or
marketing
idea, there is
a person or
persons of
great
vision."
And when
you're talking
about the
Internet in
the microcosm
that is
audophilia,
such a person
is Mark
Schifter. For
the
uninitiated,
Mr. Schifter,
in the minds
of many
industry
pundits, went
way out on a
limb to
several years
ago (or was it
only 1992?) to
predict that
the Internet
would change
the consumer
electronics
industry
forever.
Schifter's
prophecies
also suggested
that the
Internet would
force changes
on the
traditional
distribution
systems of
consumer
electronics,
and would
promote, no,
demand
international
partnerships
between
manufacturers
in one country
and consumers
in another.
But,
alas, change
does not come
easily to
everyone in
audioland, and
so there were
those who
thought what
Mark had to
say was
nothing less
than heresy.
Don't like the
message –
kill the
messenger --
as not
everyone in
the
electronics
biz was or is
comfortable
with the
notion that
people in any
city, any
state, or any
country could
almost
instantly have
information on
products and
pricing at
their
fingertips.
And then to
ponder the
idea that
those products
could be
delivered to
the consumer's
door without
him or her
leaving the
safety and
comforts of
home!
Scandalous!
For
those
manufacturers
who for years
offered their
products
through
dealers and
distributors
(who, in turn,
were defined
by agreement
through
various
"territories")
the promise of
The Netway was
too much to
fathom; a true
paradigm shift
in the making.
With the
Internet, or
The Netway, if
you will, a
"territory"
is changed in
a microsecond
from a city to
a global
marketplace.
Need
an example?
Think hard
enough and I'm
sure you'll
remember that
long running
Federal
Express TV ad
depicting an
enterprising
young designer
of a modern
red chair that
could ship the
chair almost
anywhere on
earth. It
showed smiling
people in the
Orient, The
Arabian
dessert and
the
snow-capped
mountains of
Scandinavia
all sitting
and enjoying
the comforts
of this
miraculous red
chair. So it
is now, as Mr.
Schifter so
accurately
predicted,
that hundreds
of new sources
for consumer
electronics
are available
on the
Internet, to
be enjoyed by
every member
of the global
village, on
every corner
of the globe.
Those
who know Mark
well often
thought he had
a crystal
ball. When in
1989 he began
talking about
forming a
company that
could (and
did) make
products
delivering
high-end
performance at
VW like
pricing, he
was told to
"go away,
it simply
could not be
done." If
you were one
of the
thousands who
enjoyed the
DAC-in-the-Box
or the
original DEE
v1.0, or who
still looks
fondly at your
DTI-Pro 32,
you know there
is no stopping
great ideas.
And
the company
Mark used to
realize his
vision was
Audio Alchemy,
a huge success
in the eyes of
many. In fact,
today, there
are over a
dozen
companies that
were either
spin-offs of
Audio Alchemy,
or which were
inspired to
compete with
the idea of
high-end
performance at
low-end
prices.
However, in
the end, the
execution may
have consumed
the idea, as
Audio Alchemy
grew much too
fast and was
ultimately
swallowed-up
by a larger
company that
did not
possess the
same vision or
commitment. A
hard lesson,
indeed, but
one that
opened the
eyes of
several
creative
people to go
forward with a
new approach
that could
serve far
greater
numbers of
consumers with
an ease and
convenience
only possible
on the
Internet. And
the Internet,
in turn,
convinced
still others
that high-end
products and
low-end prices
were here to
stay.
This
is where
Mark's vision
of the reach
of the
Internet comes
into full
blossom. For
offering
high-end
products with
low prices on
the Internet
is quite
simply the
only way to
provide
thousands of
customers, on
a
cost-effective
basis, with
the products
and services
they desire.
Without the
Internet
acting as a
totally new
distribution
tool, most
manufacturers
(especially
many
specialized
manufacturers
who cater to
the needs of
audiophiles)
will not be
able to
produce the
volume needed
to keep costs
and, in turn,
prices down.
If
all of this
seems like
news to you,
you might as
well be
selling Edsels
on Route 66.
Or better,
yet, check out
Mark's new
company,
Perpetual
Technologies,
Inc. for a
lesson on how
The Netway is
here to stay.
In short,
Perpetual
Technologies
makes real the
vision of
completely
integrating
the Internet
to make
breakthrough
products
available to
music lovers
and home
theater
enthusiasts
all around the
globe, at
prices that
will make them
smile. Their
introductory
products, such
as the P1-A,
are a great
example of how
to use the new
advantages
that The
Netway offers to conveniently bring high-end
products to the masses.
If
the recent
past is any
indication,
the American
appetite for
"faster-cheaper-now"
product
selection and
delivery will
only continue
to increase
exponentially
in the coming
years. With
convenience as
the scripture,
the new
consumer
religion
created by the
Internet will
constantly win
new converts
by serving our
desire for
quality
products and
low prices,
without the
hassle of
having to
leave home.
And in no
niche market
is this change
likely to be
as dramatic as
in the
consumer
electronics
industry. Mark
Schifter,
along with
countless
other budding
audiophile
entrepreneurs
like www.audionut.com,
have
recognized the
opportunities
that this new
product-marketing-distribution
phenomenon
offers. For
those who
refuse to do
the same, the
only thing
that can be
said for sure
is that your
options, in
the very near
future, will
be quite
simply: The
Netway or the
Highway.

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