Audicus, a very cool new company that is one of a select few selling affordable high-quality custom-programmed hearing aids direct to the consumer, was featured yesterday in a CNBC report entitled “The Next Startup Boom: Hearing Aids?”
Audicus CEO Patrick Freuler provides the CNBC hosts with background on the rapid increase in hearing loss among consumers of all ages, especially the marked increase in hearing loss among iPod-generation teens, to demonstrate the growing need for affordable hearing assistance.
Audicus sells digital hearing aids that are programmed by the manufacturer based on personal audiograms customers send to the company, bypassing the traditional visit to the audiologist. If you have had a hearing test recently and got a copy of the audiogram showing the results, that’s all you need to order pair of high-quality (and stylish) hearing aids directly from Audicus.
The market for custom programmable hearing aids sold direct to the consumer over the internet still is in its infancy, as few consumers have in hand the required hearing test, and those that do bother to get a test often end up buying directly from the hearing aid fitter or audiologist who administered it. But a growing number of tech-savvy consumers are starting to take their test results and shop around for quality hearing aids at lower costs.
Freuler, a former Bain Capital Associate and MIT Aerospace Engineering graduate, presents statistics that together make a compelling case for the idea that the hearing aid market, once there are more choices at more affordable price points, is set for more rapid growth:
- Over 37 million Americans 18 and over have some degree of hearing loss.
- 20 percent of U.S. adolescents suffer from some level of hearing loss.
- Hearing loss among teens increased five percentage points over the past 15 years.
- The U.S. hearing aid market was valued at nearly $6 billion in 2011.
- The U.S. hearing aid market is expected to hit $8 billion by 2018.
In addition to the aging Baby Boomer population losing hearing at predictable rates, youths are losing their hearing at higher rates than ever before because of environmental noise and high-decibel earbuds. It all adds up to opportunity for new market entrants.
When I made internet hearing aids Trend #4 my Ten Trends to Watch in 2012, the prediction was based on my previous experience with America Hears hearing aids, an internet brand which I’ve worn and love. These quality devices are different from Trend #6, the burgeoning class of over-the-counter “personal sound amplification products” (PSAPs), which provide amplification but are not programmed to the customer’s specific hearing profile. PSAPs are very inexpensive but provide only limited help to consumers with hearing loss that requires a programmable solution.
The custom programmable hearing aids that come from Audicus, America Hearing and other direct-from-the-manufacturer suppliers are more expensive than PSAPs, but they provide high-quality programmable hearing enhancement. And they come at a steep discount — sometimes thousands of dollars less — to the two-four thousand dollars per hearing aid that you will typically pay for a leading premium brand purchased from an audiologist.
But here’s an important caveat: while I’m a strong supporter of a broader channel with more price points and choice of hearing-aid products and accessories, I’m also still a strong supporter of the service provided by audiologists who sell premium-priced hearing aids. Without a proper fitting, you can damage your hearing and/or be frustrated with hearing aids that help you a lot less than they should.
So my belief is that custom-programmed hearing aids purchased directly from the manufacturer over the internet will enjoy their fastest market acceptance among experienced hearing aid users who understand their hearing loss well and already have a better idea than first-time buyers of exactly what kinds of hearing assistance they need.