Company / division: Sonos
This product isn’t a huge surprise, and in fact it seems that a lot of Sonos fans (and observers) are actually disappointed in it. To me, it feels like this is the last product from the old strategy at Sonos before it begins embracing voice control and other features it’s been talking about in recent months. It’s a logical counterpart to the Playbar that Sonos already makes for wall-mounted TVs, and is basically the same product in a different shape, to sit under a TV on a stand instead. Sonos is in an interesting and challenging period at the moment where it’s talking about the future but very much still delivering products from the present (and even past). It’s going to have to move fast to avoid being left behind by a whole set of connected and smart speakers from competitors – I suspect there are growing numbers of people who will sacrifice a little audio quality for a whole home audio system they can control with their voices.
Two Sonos Updates – The Verge / Variety (Jan 20, 2017)
Sonos recently got a new CEO, and he’s been communicating with both staff and reporters. The Verge has a mostly intact copy of his internal email to staff, while Variety has an interview with the main himself. The letter to staff is less revealing, though it suggests some broad strokes of the company’s strategy, while the Variety interview adds more unique insight, such as Sonos’s plans to incorporate Amazon’s Alexa into its speakers, a possible IPO, and plans for more of a retail presence. Sonos is in a fascinating space – it was arguably the big standalone home speaker player before Amazon came along with the Echo, and still has the advantage when it comes to whole home audio. But Echo and Google Home offer a big feature Sonos doesn’t, and I think Spence is smart to plan to incorporate both Alexa and potentially other voice assistants. Sonos would still make a fascinating buy for Apple, which already has its products in most of its stores, but both the Echo/Home and Sonos markets could be threatened by an organic entry by Apple into this combined market too.
It must be tempting to make every speaker-related story about Amazon and Echo at the moment, but I think the thrust of this story is off. I just met with Sonos last week at CES, and they’re doing very well – arguably just hitting their stride, with their first brand advertising campaign after many years of word of mouth marketing alone. They recently secured Apple Store distribution and have an interesting partnership with AirBnb. I do think they’ll want to take their current Alexa integration beyond Echo-based control by incorporating microphones into the line, but I don’t see an existential threat here just yet.