The wireless audio device market is fueled by strong growth in Bluetooth speakers in the lower end of the price spectrum and multiroom audio at the premium end. According to Strategy Analytics, - Home Audio device shipments including Integrated HiFi Systems, AV Receivers, Docking Stations, Wireless Speakers and Soundbars will exceed 80 million units globally in 2015 from just over 70 million in 2014. - Wireless Speakers will account for close to 50% of all Home Audio shipments in 2015. Bluetooth only speakers dominate with around 65% share of sales although the number of Wi-Fi and Wi-Fi/Bluetooth models is expanding as interest in multi-room audio grows. - Global shipments of Soundbars will grow 36% in 2015 to reach 15 million units as TV manufacturers and audio specialists add new products and features to their line up. In this report, you will also learn about the key market trends, competitions and how Sonos is keeping its leading position.

1. Wireless Audio Device Market Study
Prepared by Kevin Huang
December 29, 2015

2. Page  2
What is a wireless audio device?
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3. Page  3 Source: https://goo.gl/vv0wug
Home audio hardware market outlook: by device type
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27
53
North America currently
dominates, accounting
for 43% of the worldwide
market. However, that is
expected to fall to 38%
by 2019 due, partly to
the increasing popularity
of wireless speakers in
the Asia Pacific market.
value(inbillion)

4. Page  4
Wireless connectivity driving the $10 billion
global home audio market
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•
•
Source: https://goo.gl/42drp8

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What’s driving the market growth

6. Page  6
More competitors entering the market

7. Page  7
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•
•
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In North America, the U.S. constituted largest market share revenue. However, Asia Pacific,
with Japan, Australia and China leading the way, is likely to grow at the highest CAGR.
Wireless audio device market segmentation
The high adoption of innovation technology solution and continuous innovation are major
driver of wireless audio device market. The technologies for wireless audio device are
AirPlay, Bluetooth, Wi-Fi, and others. The other market includes SKAA technology.
The product market for wireless audio device is divided into sound bars, wireless speakers
systems, headsets and microphone, and others. The other segment includes power
amplifier, radio tuner, A/V controller.
The major applications of the wireless audio device market are seen in consumer and
home application, commercial, automotive, and special application. The special
application market is consisting of defense and security.

8. Page  8
Best-selling wireless audio devices

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Amazon home audio category page

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Amazon wireless & streaming audio category page

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Amazon speakers category page

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Best-selling wireless multiroom speakers
Sonos Bose (as of Dec. 26, 2015)

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Best-selling wireless soundbar speakers
Vizio Sonos (as of Dec. 26, 2015)Samsung LGBose

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Amazon wireless soundbar speakers page

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Best Buy home audio category page

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Best-selling wireless multiroom speakers
Sonos Sony
(as of Dec. 26, 2015)
Bose

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Best-selling wireless soundbar speakers
Vizio Sony
(as of Dec. 26, 2015)
Samsung LGBose Insignia

18. Page  18
Hardware comparisons

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Wireless audio devices - speakers
Sonos Play:1 Play:3 Play:5
MSRP $199 $299 $499
Audio formats supported
Support for compressed MP3, iTunes Plus, WMA (including purchased
Windows Media downloads), AAC (MPEG4), AAC+, Ogg Vorbis, Apple
Lossless, FLAC (lossless) music files, as well as uncompressed WAV and
AIFF files. Native support for 44.1kHz sample rates. Additional support for
48kHz, 32kHz, 24kHz, 22kHz, 16kHz, 11kHz, and 8kHz sample rates.
Tweeter 1
Mid-Woofer/Bass Radiator
Stereo Pair
1/0
10/100Mbps x 1
Amplifier
Two Class-D
digital amplifiers
V
Ethernet Port
Wireless connectivity WiFi (802.11b/g)
Internet radio supported V
Music services supported V
Weight 4.08 lbs.(1.85 kg)
Dimensions (WxHxD) 4.69”x6.36”x4.69”
1
2/1
10/100Mbps x 1
Three Class-D
digital amplifiers
V
WiFi (802.11b/g)
V
5.71 lbs.(2.6 kg)
10.6”x5.2”x6.3”
3
3/0
10/100Mbps x 1
Six Class-D
digital amplifiers
V
WiFi (802.11b/g)
V
14 lbs.(6.36 kg)
14.33”x8.03”x6.06”
$499.95
V
WiFi (802.11 b/g/n)+BT
V
25.75 lbs.
17.1"x9.7”x7.1"
Bose SoundTouch
30 Series
MP3, WMA, AAC, FLAC, Apple Lossless
N/A
N/A
N/A
$349.95
10/100Mbps x 1+ USB x 1
V
WiFi (802.11 b/g/n)+BT
V
7 lbs.
Bose SoundTouch
20 Series
N/A
N/A
N/A
12.4”x7.4"x4.1"
V V VV

20. Page  20
Wireless audio devices - speakers
Denon Heos 1 Heos 3 Heos 5
MSRP $199.99 $299.99 $399.99
Audio formats supported
Tweeter 1
Mid-Woofer/Bass Radiator
Subwoofer
1/0
Amplifier
Two Class-D
digital amplifiers
N/A
Ethernet/USB Port
Wireless connectivity WiFi (dual band “N”)
Internet radio supported V
Music services supported V
Weight 3.13 lbs.
Dimensions (WxHxD) 5.08”x7.44”xx5.04”
Dual active wide range drivers
N/A
Two Class-D
digital amplifiers
N/A
V
4.2 lbs.
10.7”x5.1”x6.5”
2
2/1
Four Class-D
digital amplifiers
N/A
V
6.6 lbs.
11.6”x8.2”x6.5”
$599.99
10/100Mbps x 1
+ USB x 1
1
V
9.9 lbs.
Heos 7
2
2/2
18.9”x8”x6.5”
V V V
Five Class-D
digital amplifiers
MP3 and WMA music files, including purchased WMA downloads, as well as
AAC (MPEG4) and FLAC (lossless) file types, along with WAV files. Supports
32 kHz, 44.1 kHz and 48 kHz sampling rates.
10/100Mbps x 1
+ USB x 1
WiFi (dual band “N”) WiFi (dual band “N”) WiFi (dual band “N”)
10/100Mbps x 1
+ USB x 1
10/100Mbps x 1
+ USB x 1

21. Page  21
Wireless audio devices - speakers
Samsung
Radiant360 R1
MSRP $249 $179
Audio formats supported
AAC, MP3, WAV, WMA, ALAC, AIFF, OGG, FLAC
Tweeter
Woofer
Smart Hi-Fi (DLNA)
Speaker Power Output
Ethernet/Google Cast
Wireless connectivity
Internet radio supported V
Music services supported V
Weight 3.09 lbs.
Dimensions (WxHxD) 4.84”x9.21”x4.84”
N/A
1” x 1
3.6” x 1
N/A
N/A
Samsung
Radiant360 R3
$329 $229
V
V
4.41 lbs.
5.67”x10.75”x5.67”
WiFi (2.4/5GHZ DUAL BAND) + BT 4.0 + Micro USB
N/A
1” x 1
4.2” x 1
N/A
N/A
Samsung
Radiant360 R5
$499 $299
V
V
3.09 lbs.
6.53"x12.3"x6.53"
N/A
1” x 1
5” x 1
N/A
N/A
Samsung
Radiant360 R7
$599 $379
V
V
7.5 lbs.
7.13"x16.61"x7.13"
N/A
1” x 1
5” x 1
N/A
N/A
LG Music
Flow H4
$199.99
V
V
1.8 lbs.
7.64”x2.52”x2.76”
40W
N/A
N/A
V
V/V
MP3, WAV
WiFi + BT 4.0 + NFC
LG Music
Flow H5
$279.99
V
V
13.4"X8.1"X3.5"
20mm x 2
3” x 2
V
$379.99
V
V
14.6"x9.1"x4.3"
V
AAC, MP3, WAV, WMA,
ALAC, AIFF, OGG, FLAC
7.17 lbs.
V/V V/V
20W
9.02 lbs.
70W
20mm x 2
4” x 2
WiFi + BT 4.0
LG Music
Flow H7

22. Page  22
Wireless audio devices - soundbars
Sonos Playbar Vizio 2.0 system
MSRP $699 $79/$99
Audio formats supported
Support for compressed MP3, iTunes Plus, WMA (including purchased
Windows Media downloads), AAC (MPEG4), AAC+, Ogg Vorbis, Apple
Lossless, FLAC (lossless) music files, as well as uncompressed WAV and
AIFF files. Native support for 44.1kHz sample rates. Additional support for
48kHz, 32kHz, 24kHz, 22kHz, 16kHz, 11kHz, and 8kHz sample rates.
Tweeter 3
Mid-Woofer/Bass Radiator
3.0/3.1/5.1 Home Theater
6/0
10/100Mbps x 1
Amplifier
Nine Class-D
digital amplifiers
Pair with SUB/Play:1
Ethernet Port
Wireless connectivity WiFi (802.11b/g)
Internet radio supported MP3, WMA
Music services supported V
Weight 11.9 lbs.(5.4 kg)
Dimensions (HxWxD) 85x900x140mm
4.5/5.75 lbs.
29”/38”
Sound
pressure level
95/100 dB
Low frequency 70/60 Hz
USB
Wireless range (Sub)
/Bluetooth
V
1
Weight
Audio Decoding
Technology
Dolby Digital
Audio Enhancement
Technology
DTS TruVolume
DTS TruSurround
Vizio 2.1 system
$159 $139
Vizio 5.1 system
$349 $299.99
Sound Bar Size
Sound Bar Speakers 2.5”/2.75” x 2
Analog/Digital Audio
Subwoofer support V
5.8/7.21 lbs.
38”
100 dB
50 Hz
60ft./V
1
Dolby Digital
DTS TruVolume
DTS TruSurround
2.75” x 2
V
7.45/12.48 lbs.
40”
102 dB
60ft./V with aptX
1 + HDMI x 1
Dolby Digital
DTS TruVolume
DTS TruSurround
2.75” x 3 + 6” Sub
V
L&R: 90 Hz – 20 kHz, Center: 160 Hz
– 20 kHz, Sub: 50 Hz – 90 Hz

23. Page  23
Wireless audio devices - soundbars
Samsung
HW-J250 Soundbar
Samsung HW-J450
Soundbar w/ Wireless Sub
MSRP $149 $129 $309 $229
Audio formats supported
Tweeter N/A
Mid-Woofer/Bass Radiator
Built-in Subwoofer
N/A
V/X
Power Output 80W/2.2-channel
V
USB/HDMI Port
Wireless connectivity BT
Internet radio supported V
Music services supported V
Weight 4 lbs.
Dimensions (WxHxD) 28.35"x2.64"x2.95"
AAC, MP3, WAV, WMA, OGG, FLAC
N/A
N/A
V/V
300W(140W Sub)
2.1-channel
N/A
BT
V
V
3.5/5.1 lbs.
37.68"x2.34"x2.62"
7.05" x 14.21" x 11.79"
LG LAS 454B 2.1ch
300W Sound Bar
$139
N/A
N/A
V/X
300W(200W Sub)
/2.1-channel
N/A
BT 4.0
V
V
5.4/12.1 lbs.
37.4"x2.8"x1.9"
6.7"x15.4"x10.3"
LG LAS 551H 2.1ch
320W Sound Bar
$269
N/A
N/A
V/V
320W(200W Sub)
/2.1-channel
N/A
BT 4.0
V
V
6.2/12.6 lbs.
35.04"x2.01"x3.35"
6.73"x15.35"x10.28"
AAC, MP3, WAV, WMA, OGG, FLAC

24. Page  24
One of the first companies to
announce support was Sony with its
new STR-DN1060 and STR-DN860
receivers, as well as a set of
dedicated streaming speakers. LG's
Music Flow and Denon Heos are
also on board. Meanwhile, Sony
also debuted its own streaming
feature called SongPal Link, which
works in a similar way to these
other technologies: Wi-Fi streaming
via a smartphone app.”
New technology & innovation
Source: http://goo.gl/B4nwgu

25. Page  25
New technology & innovation
Source: http://goo.gl/HV5mkc
LG has announced not one but three new wireless multiroom sound
bars for 2016 to replace the existing LAS751.
The SH8 and the SH7 offer a wireless subwoofer and slightly different
cosmetics to last year's version. Meanwhile the SH6 comes without a
sub but features "dual bass ports" to enhance bass response.
All three models feature Wi-Fi -- with compatibility for LG's Music Flow
system as well as Google Cast and LG's "Auto Music Play" -- in
addition to Bluetooth connectivity.
The models include "BT-Fi," which "automatically switches the connectivity method based on the content
source, eliminating the need to manually switch connectivity methods if playing music from different content
partners." We're getting clarification from LG what this means, but our guess is it can switch between Bluetooth and
Wi-Fi automatically.
Also new is Adaptive Sound Control feature, which alters the sound mode of the bar according to the type of content
you're watching.

26. Page  26
What it takes to be successful

27. Page  27
Wireless Soundbar Market

28. Page  28
Cramming high-quality audio components – good sounding speakers, high-quality
amplification and low-resonance cabinet – into the confines of a flat-panel HDTV
simply isn’t a feasible solution. The trends of the HDTV market are constantly
working against the designer. As a result, most flat-panel HDTVs provide at best a
below-average audio experience, characterized by tepid output power through tiny
speakers that, more often than now, are incapable of meeting consumer’s
expectations when compared to the video experience.
Consumers demand for better sound

29. Page  29
Consumer interest in smart homes crucial for
soundbar market growth
• Flexible Audio Streaming Capacity: The wireless connectivity
abundant in smart homes means that speakers riddled with the
traditional, cluttering wiring units and specific, limiting wired
connectivity options are on the way out. Instead, wireless soundbars
fill this void perfectly, fulfilling the needs of smart homes.
• Rising Disposable Income: The growing preference for smart
homes also reflects the increasing purchasing power of the average
buyer thanks to increasing disposable incomes. This helps consumers
purchase technologically advanced equipment rather than settling for
the bare minimum, which will help the soundbar market grow,
especially in developed regions such as North America and Europe.
• Product Bundling: The growing trend of smart homes is also giving
rise to the trend of product bundling in the residential construction
industry. This consists of multiple technologically compatible products
being sold in a single package. The high rate of inclusion of soundbars
in such packages will help the soundbar market grow.
Source: http://goo.gl/hsFMmS

30. Page  30
NPD: soundbars not just about TV sound
The preferred streaming device
for audio content is smartphones,
with 23 percent of soundbar
owners streaming music and
podcasts via their smartphones.
Source: http://goo.gl/m01qB3

31. Page  31
Brand View has reviewed the pricing of
soundbars, excluding those with separate
subwoofers, in Best Buy and Target. Best Buy
had more than four times the number of
soundbar listings than Target, with 43 and 10
listings respectively.
Some 60 percent of Target’s soundbar listings
were priced at less than $149.99; brands
within this price bracket included RCA and
VIZIO. Best Buy had the most listings, 34.9
percent, in the $150 – $299.99 price range
compared to just 23.3 percent below $149.99.
The most expensive soundbar that Target
listed is the Sonos PLAYBAR, priced at
$699.99; Best Buy also listed this item, at one
cent less, $699.98. The most expensive unit in
Best Buy was the Niles – Cynema Soundfield
Soundbar System, costing $1999.99.
Soundbar pricing analysis
Source: http://goo.gl/9vkuqU

32. Page  32
Wireless soundbars market to boom

33. Page  33
Wireless soundbars market to boom

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Wireless soundbars market to boom

35. Page  35
Visio is the leading brand in the U.S.

36. Page  36
Visio soundbar merchandising

37. Page  37
Earning good product reviews are important

38. Page  38
Future of the soundbar market

39. Page  39
Why the latest LG soundbar will be music to
millennials' ears
The LG Music Flow HS8 Wireless Curved Sound Bar
Offering up to 360 watts of sound, the Music
Flow HS8 can automatically distinguish what
type of content it is broadcasting and optimize its
sound to suit.
This system, called i-Sound, means that there's
no need to mess with levels or equalization when
switching between blockbusters, live sports and
music videos.
But what's more, the curved soundbar is also
designed to work with most mobile devices via
Bluetooth or wi-fi and can be used with a host of
music streaming services via Google Cast.
Wi-fi connectivity also means that the HS8 can
work in concert with other LG Music Flow
speakers around the home.
Source: https://goo.gl/eh0UYt

40. Page  40
Connected speaker market heats up with
super high-end devialet phantom
The Phantom has both WiFi and Bluetooth radio
chips. Bluetooth has been typically looked down
on by audiophiles, but the company decided to
include Bluetooth in the U.S. version because
the company wanted to make streaming music
from smartphones as easy as possible.
Source: http://goo.gl/IpHlBJ

41. Page  41
Case Study: Sonos

42. Page  42
Ditch Your Old Hi-Fi: Wireless Speakers Make Home Audio Easier
Bose, Denon, Raumfeld, Devialet and others now make Wi-Fi stereo speakers—can any beat Sonos?
The key to Sonos’
success is its software.
Sonos apps for iPhone, Android,
PC and Mac are reliable, and
make it easy to get to your music,
even if you’re sharing with a
family. With a few taps, you’re
beaming different songs to
different rooms, or bopping
around the house to the same
track on “party mode.”
Source: http://goo.gl/WQ9Pki

43. Page  43
Sonos product mixPrice
$199
$299
$399
$499
$599
$699
$799
PLAY 1:
$199
PLAY 3:
$299
PLAY 5:
$499
PLAYBAR
$699
SUB
$699
CONNECT
$349
CONNECT:AMP
$499
Speakers Components Home Theater

44. Page  44
Sonos key U.S. channel partners

45. Page  45
Retail merchandising
(End cap design)
(Shop in shop)(Island display) (Inline display)

46. Page  46
Retail merchandising - Bose

47. Page  47
Sonos brand identity
This new iteration of the Sonos
visual identity advances the idea
of the modern music
experience—an idea that is not
singular or monolithic, but
rather a rich array of expression.
Performance imagery from
Sonos Studio, new product
photography and the
introduction of three
versatile graphic tools deliver a
creative and variable language
that still provides the stability of
a recognizable system.

48. Page  48
Sonos advertising

49. Page  49
With tech giants moving in on its turf, sonos
embraces pricey media buys
This year (2015) the company expects to achieve $1
billion in sales, nearly double its total from 2013. In the
overall wireless speaker market, it sits comfortably in
second place with a 16% dollar share, trailing only Bose,
which has a 22% share, according to the NPD Group. The
gap in ad spend is far wider -- although Bose sells more
products, including its signature headphones -- with Bose
outspending Sonos ten to one in 2013.
Source: http://goo.gl/nQvVD2

50. Page  50
Sonos super bowl commmercial: A big break for
wireless audio
Despite having a much smaller wallet, Sonos ponied up an estimated $4 million for a
30-second ad to introduce the world to wireless whole-house audio. Taking part in
the largest platform in American professional sports, and the advertising industry’s
marquee event, Sonos answered pundits’ questions about how it would respond to
the challenge of companies such as Bose, Samsung and others entering a category it
single-handedly developed.
By advertising during Super Bowl
XLVIII between the Denver Broncos
and now world champion Seattle
Seahawks, Sonos demonstrated to
dealers how much it values its
position as a market leader and
showed an estimated 70 percent of
American homes that they don’t
need to completely remodel their
homes to stream audio throughout
their homes.
Source: http://goo.gl/Njz2Ab
(click to play the video)

51. Page  51
For Sonos, music is more about 'how' than 'what'
With everyone carrying around a lifetime’s worth of
songs in their pockets (and even more on the Internet),
the modern music experience is as much about how you
listen to it as what you listen to.
In a new marketing campaign, Sonos enlists a bevy of
notable music artists such as Rick Rubin, Q-Tip, Gary
Clark Jr. and St. Vincent to attest to the experience of
listening to music out loud in their homes.
(click to play the video)
Source: http://goo.gl/uX4CiJ

52. Page  52
Sonos TV commercials & product videos

53. Page  53
During the Academy Awards one of the TV
spots that stood out came from Sonos. In it,
the wireless audio system covered an entire
living room in Oscar gold. To extend
the commercial's reach online, the brand ran
promoted tweets using the same creative
asset, targeting searches around the event.
Sonos social media
Use Twitter for Cross-Channel Marketing
Social Media Followers
466K
26.5K
105K
19.3K
(as of Oct 6, 2015)
(as of Dec. 27, 2015)

54. Page  54
Event sponsorships
Watch the video here.

55. Page  55
Event sponsorships

56. Page  56
Event sponsorships

57. Page  57
Top 10 innovative brands 2014: #8 sonos
Sonos is so committed to letting consumers
experience its products in organic settings that it
set up a permanent, acoustically tricked-out space
exclusively dedicated to that goal. The Sonos
Studio in Los Angeles opened in 2012 and hosts
about 30 events annually, courting guests
including media folks, influencers, and consumers
for performances, premieres, listening parties, and
artist collaborations.
“
,”
says Sonos senior PR manager Eric Nielsen, who
confirmed that experiential marketing is a
“significant part of marketing spend.”
“Someone can tell you [a product is] cool, but that
magic doesn’t happen until you can experience it
yourself,” says Sonos senior marketing manager of
culture Ivan Entchevitch. “We want people to come
away and learn something they didn’t know before.
You see people come in and just lose themselves
like kids.”
Source: http://goo.gl/GpxyBC

58. Page  58
How Sonos do branding
The speaker brand Sonos is a good example. The driver of brand
value for high-end speaker systems used to be design, sound
quality, and big retail events. Sonos went beyond this by building
an app that connects its speakers to services like Spotify and
Pandora, and recommends personalized music for customers
using its own algorithm. Users communicate with Sonos every
time they listen to music in their homes. Through this interface,
users can follow other stations, create playlists, and see other
users’ behavior. And the brand becomes more valuable for each
individual user as more join. The company doubled its revenue
last year (2013-2014) to more than $1 billion and its systems
are installed in more than 1 million homes in the U.S. alone.
Source: https://goo.gl/kuBf0H

59. Page  59
Looking at marketing innovation at Sonos
Sonos products have long had a following amongst audiophiles and tech geeks. But in
the past few years the company has expanded its brand awareness significantly,
succeeding in making something that is basically sort of nerdy (audio equipment) feel
young, progressive and cool.
For starters, the company has acted like a talent scout for the past few years, enlisting a who’s
who of about-to-be-huge musicians like DJ Questlove, Janelle Monae and Deadmau5.
They’ve constructed the Sonos Studio in Los Angeles, an acoustically-designed gallery in the
heart of the city that celebrates music listening. A network of notable collaborators participate
in, and co-develop, listening parties, film screenings, art installations, workshops and live
musical performances. It’s been a consistent generator of buzz (and cool) for two years now.
In January, Sonos aggressively entered the world of Super Bowl advertising, a sphere usually
marked by more traditional consumer brands, with this remarkable spot that listed legendary
hip-hop producer Rick Rubin as executive music producer.
Sonos has built a hot consumer brand in a remarkably short period of
time in a very competitive industry: consumer audio. Founded in 2003,
the company has established itself as a consumer audio heavyweight
with innovative products, distinguished marketing and great press.
Source: http://goo.gl/rioUho

60. Page  60
Looking at marketing innovation at Sonos
Now, their latest product might help them surpass established audio giants.
Sonos’ universal music search is intended to act as a grand unifier for the
hodgepodge of music services that the average audio consumer already
utilizes. Between purchased iTunes music, your favorite Pandora stations,
and the other streaming music services – it can be confusing to manage it
all. But Sonos has seamlessly connected all of these in their new app.
(continued)
The real genius behind Sonos is having a marketing strategy and product completely in
sync. The creative utilizes a minimalist aesthetic that fits the out-of-sight, out-of-mind
mentality of the speakers. Their TV spots often feature white, hyper-modern apartments
set up with Sonos equipment.
• It made one the first wireless speakers and was able to carve out their own corner of
the market.
• But more to the point, Sonos has managed to blend technology, hip cachet and giant
reach to make the company a household name.
• It’s an effort that savvy marketers would be smart to watch closely.