Denon globally is targeting a minimum of 10% growth in 2008 with the Company banking on a new range of A/V receivers however in Australia local Denon distributor Audio products Australia is still refusing to do business with mass retailers where Denon is experiencing significant growth in the USA and European markets.
During the next few weeks according to TWICE Magazine Denon will roll out several new products, they also plan to be first to offer Audyssey's Dynamic Volume technology, across all their new AVRs including their entry level models.
The technology maintains a consistent volume level and flat frequency response when a TV program cuts to a commercial, when a TV channel changes, when video sources are switched and when a movie or TV soundtrack transitions to softer or louder passages. The technology also automatically equalizes sound to maintain flat response when a program transitions to louder or softer passages, and it maintains an enveloping surround-sound experience during softer passages.
The Japanese Company has also expanded its Blu-ray selection to three SKUs with a sub $1,000 suggested Profile 1.1 player with 24 fps output, HDMI 1.3a, improved load and play times and decoding of all Blu-ray surround formats. Additional players planned for introduction later in the fiscal year will include the brand's first Profile 2.0 models.
Senior Denon executives said that they want to encourage retailers to "put audio in the forefront in the store" and no longer treat it as a video attachment to be mentioned after a TV is sold, said senior sales and marketing VP Joseph Stinziano.
In the AVR segment, the three pillars of the segment's product and marketing strategy, Stinziano said, are: connectivity, or compatible connections to other products via HDMI and other connections, including Ethernet, ease of use and enjoyment via such technologies as Dynamic Volume and basic HDMI CEC, which Denon is adopting for the first time. It appears in all new AVRs and in the new Blu-ray player.
In the previous fiscal year, Denon benefited from a strong AVR line-up and its entry into new categories, such as the company's first virtual surround bar, universal remotes, iPod-docking networked music systems and iPod-docking digital media adapters, Stinziano said. Nonetheless, a rocky economy and late shipments of multiple products yielded a small decline in Denon sales during the fiscal year ending March 31, he said.
Stinziano forecasts a minimum 10 percent sales gain in the current fiscal year, however, for several reasons including improved product availability, more Blu-ray SKUs, improved Blu-ray availability and Blu-ray's impact on AVR sales. "Our AVR sales improve when Blu-ray is in the stores," Stinziano said.
Worrying for Audio Products Australia who has religiously stuck to supporting a declining specialist market are forecasts that Denon expects significant growth in the sub-$1,000 price range because of improved competitiveness. "Above $1,000, we've always been No. 1 in dollars," he said. "Below $1,000, we had a very good year last year, but this year we'll get better compared to the competition."
Executives from Denon and parent D&M Holdings declined comment on reports that D&M's largest shareholder plans to sell its 49 percent stake in the company. D&M also said its financials for the fiscal year ending March 31 will be released in a matter of days.