The document provides an overview of the soundbar product category. It finds that soundbars offer enhanced audio for televisions in compact devices with simple setup. Popular features like Bluetooth and HDMI connectivity have increased sales and prices. The market has grown as soundbars complement higher-resolution televisions that emphasize picture over sound. Top manufacturers bundle soundbars with televisions to upsell complementary products.

1. MEMORANDUM
Date: June 12, 2015
To: Steve Ryanand VerenaRadulovic,U.S.Environmental Protection Agency
From: Cadmus
Re: A Brief Overviewonthe SoundBar ProductCategory
In March 2015, Energy SolutionsengagedENERGYSTARto learnmore about soundbar marketingin
preparationforthe NortheastEnergyEfficiencyAlliance’sRetailProductsPlatformProgram.Thismemo
outlinesfindingsfromresearchconductedasa follow uptothe call,intended primarily toprovide
ENERGY STAR and itsinterestedstakeholders withinsightsintomarketingandsalestrendsforagrowing
productcategory.
Product Background
In 1998, manufacturerAltec-Lansingintroducedsoundbars intothe audiovisual market,offeringan
alternative optiontothe home-theater-in-a-box configuration tocomplementtelevisionaudio.1
The
unitswere designedto provide anall-in-one,high-qualityaudio solution,utilizingasleek designand
offeringnumerousoptionsforinstallationanduse.
Giventheirpopularity,soundbars continue tobe a fast-growinghome audio productcategory,with
22% salesgrowthforecasted for2014.2
Television manufacturersbundle these deviceswithnew TVs,
marketingthemasan easysolutionto meetconsumers’ audioneeds. Theyare compact, withsimple
wiring,andmanymodels offerbuilt-inamplificationandfeaturessuchas HDMI inputs,subwoofers,and
Bluetoothforwirelessmusicplaybackfrom asmartphone.
Sound Bar Features
Soundbars offera varietyof featuresthatdifferentiate themfromotherproducts withinthe audio
category. Table 1 showsmodel featuresandtheirimpactsonpricing.
1 Guttenberg, S. “Who 'Invented' the Sound Bar Speaker?” CNET. 2014. Retrieved May 6, 2015,from:
http://www.cnet.com/news/who-invented-the-sound-bar-speaker/
2 “CE Industry Revenues to Reach Record High of $208 Billion in 2014,Accordingto CEA Sales and Forecast
Report.” CE.org. 2014. Retrieved May 6, 2015, from https://www.ce.org/News/News-Releases/Press-
Releases/2013-Press-Releases/CE-Industry-Revenues-to-Reach-Record-High-of-$208.aspx

2. 2
Table 1. Common Sound Bar Features
Feature Capability
Price
Influence
Incremental
Cost
Bluetooth
Ability to stream music wirelessly froma Bluetooth-
enabled device.
Low $0
Speakers
Varying number of speakers increasesound’s output
and quality.
Low $0
Design
Different designs make units compatiblewith a wide
range of spaces;they can be different colors or shapes,
and may be wall-mounted.
Low $0
Remote Control Operate from a distance. Medium $130
Subwoofer
Some sound bars come with wireless subwoofers to add
additional bassto the unit’s sound harmonics.
Medium $170
HDMI Outputs Connect to other devices with HDMI outputs. High $420
Wi-Fi
Connect to the Internet for music streamingand
other services.
High $430
*Methodology: Incremental costanalysis completed by comparing model pricingwith associated features using
data from leadingonlineretailers.
These features,servingasproductdifferentiators, have helpedsoundbarscannibalize otheraudio
productcategories,mostnotably home-theater-in-a-box andsubwoofers. Informationgatheredfrom
productreviews andleadingretail websitesindicatethe mostimportantfeaturesforthe categoryare
Bluetoothconnectivity,soundquality,design(traditional vs.pedestal),andHDMIoutputs.3
Three featuresimpactprice the most(Wi-Fi connectivity, HDMIoutputs, andwirelesssubwoofer
connectivity), probablybecause theyofferthe greatestconvenience—animportantcharacteristicfor
consumers.The toptwo featuresare suitedforearlyadoptersandaudiophiles,basedon the “best-
selling”models’price range of $50–$400 (as determined fromourin-store and online research findings).
Our analysis didnotidentify discernableprice differencesbetween ENERGYSTAR-certifiedandnon-
certifiedmodels.
Consumer Behavior
Soundbars are well suitedforconsumers seekinghigh-qualityaudio thatcanreplicate surroundsound
withoutuse of multiple speakers. Demandforsoundbars correlatespositivelyto the increasing
popularityof Bluetoothtechnologyandstreamingservices.Asstreamingtechnologycontinuesto
evolve,sowill soundbars’ abilitytomeetthe needsof consumers whowishtoamplifysoundqualityfor
movies,TV shows,sportingevents,andmusic—continually, ontheirownterms,andonnumerous
devices.Research identified soundsbars’ targetdemographicasmales,aged25 to 54, whoconsume TV
or playvideogamesat an above-average rate.Error!Bookmark not defined.
3 Moskovciak,M. “Sound Bar Buying Guide: WhatYou Need to Know.” CNET. 2013.Retrieved May 6, 2015,
from: http://www.cnet.com/news/sound-bar-buying-guide-what-you-need-to-know/

3. 3
Retail Promotion Strategy
As retailersmarket soundbarsintandemwith TVs,salesreplicate majorTV salesperiods,especially
duringthe holiday season,when consumers have anopportunitytopurchase soundbarsat steeply
discountedprices.4
SecondarysalesperiodsoccurinJanuary,tocoincide withthe SuperBowl,5
andin
spring,5
tocoincide withclearingoutoldinventory inconcertwith the launchof new productlines.
Retailersandmanufacturersplace the greatestemphasis onBluetoothandwirelessconnectivity due to
consumerdemandforconvenience andconnectivity.
In-Store Merchandising
Soundbars are merchandisedin-store,eitherthroughdedicatedaislesinmanufacturerpackaging or
throughdisplaysalongside TVs.Thoughsoundbarsdisplayedindedicatedaislesare organizedby
manufacturer, unitslackpoint-of-purchase signageand educationalinformation toexplainthe units’
differentfeatures.
In comparison, soundbarspositionedalongsideTVsare merchandised verywell,typicallysetupas
interactive displays;soconsumerscanexperience the soundqualityandotherfeatures.Signage of
highlightedfeatures,benefits,andpricingtypicallyare affixedtothe interactive displays.Retailersuse
enhancedTV soundqualityasthe primarymotivatorforpurchases.
Online Positioning
Soundbars have theirownpageswithinelectronics’ homeaudiosubsections.We found retailers
increasingly positioningunitsintandemwithTVs.Some retailersincludebuyingguides onsoundbar
pagesto assistconsumers inshoppingforspecificfeatures.The mostpopularfiltersusedforsoundbars
follow standardpractice forelectronicsproductsandincludelowest/highestprice, customerrating,
best-selling, andnewarrivals.
Manufacturer Analysis
More than 100 manufacturers operate inthe soundbar industry andcan be dividedintotwodistinct
categories:speakermanufacturersand TV manufacturers.Speakermanufacturersproduce traditional
home audioproductsand include brandssuchasYamaha and PolkAudio.TV manufacturers primarily
produce TVs,but alsoproduce soundbarsas secondaryortertiaryproducts, giventhe needtoaugment
the soundfrom theirTVs.BrandsproducingTVsand soundbars include Samsung,LG, Sharp,Sony, and
Vizio.TV manufacturers operate ata competitive advantage overspeakermanufacturers astheycan
designcompatibleandcomplementaryTVsandspeakersfortheirbrand andcan leverage salesand
marketingstrategiestobettercatertoconsumerconvenience.
4 “Best Sound Bars This Holiday.”CNET. 2014.Retrieved May 6, 2015, from: http://www.cnet.com/holiday-gift-
guide/home-theater/best-sound-bars/3
5 “How to Use Midstream Incentives to Promote ENERGY STAR® Certified Consumer Electronics.”
energystar.gov. ENERGY STAR. n.d. Retrieved May 7, 2015, from:
https://www.energystar.gov/ia/partners/downloads/CE_Guide.pdf

4. 4
While soundbarmanufacturersfocusondifferentiatingthemselvesfrom directcompetitors, theyalso
mustfocus on indirectcompetitors,suchas companiesdevelopingnew innovationsinaudio (e.g.,
portable wirelessspeakers).Soundbarmanufacturers have beenabletoaddress thisthreatthrough
innovation,mainly bypackagingsoundbarswithwirelesssubwoofers andofferscalablewireless
speakers thatcater to consumerneeds. Tocontinue theirsteadygrowth,manufacturers willneedto
continue tooffernew features tostandoutamong directandindirectcompetition.
Trends
Withthe emergence of high-resolution,UltraHD TVs,containing4K,8K, and OLED technology,TV
manufacturers clearly are placinggreateremphasis onpicture qualityatthe expenseof soundquality.
Manufacturers have used thisas an opportunitytoupsell theirproductsbycombiningTVsandsound
bars as must-have products.Salestrends forsoundbarsshouldcontinuetoincrease,giventhe
correlationof soundbar purchasestoTVs. One trendmay threatensoundbar growth:the introduction
of wirelesshome theatersystems,enteringthe market in2015.6
Consumers mayoptfor a more
universal surroundsound experience throughahome theaterconfiguration.
6 Denison, C. “Affordable 4K, Quantum Dots, and All the Other Awesome TV Trends Coming In 2015.” Digital
Trends. 2014.Retrieved May 8, 2015,from: http://www.digitaltrends.com/home-theater/8-awesome-tv-
trends-to-watch-for-in-2015/