Hearing Aids

If You Were A Major Hearing Aid Company And Got A Half-Billion Dollar Windfall, What Would You Do With It?

If you were one of the world’s largest hearing-aid companies and suddenly received a half-billion dollar windfall, what would you do with it? That’s exactly the position GN Store Nord finds itself in today.

The parent of GN ReSound hearing aids and GN Netcom headsets will get 550 million Euros (approximately $530 million US) after prevailing in a long-standing civil dispute with Poland’s largest telecommunications company. In the Bloomberg News summary of the settlement, GN Store Nord executives indicated they will use the money primarily to make further investments in its ReSound hearing aid business, including potential acquisitions.

That amount of new money unleashed on a global industry that is less than $20 billion in total sales could have a major impact. But if GN ReSound just acquires another hearing-aid company, it won’t be the game-changer everyone is waiting for in a global industry that’s been stuck with less than five percent annual growth for the past decade. Here are some other areas where serious investment could get the hearing aid industry growing faster:

1. Develop More Affordable Hearing Aids: Most of the recent innovation by the global market leaders in the hearing aid business has been in the high end of the market, providing expensive features such as wireless communication to their highest paying customers. It would be great to see one of the five global leaders come up with a high-quality hearing aid for entry level users that retails for less than $1,000. Component prices are low enough to get there, but such a low price point will also require innovation and investment in the retail channel to speed up and lower the cost of fitting the hearing aids while maintaining high levels of customer service.
2. Streamline the Fitting Process: Making it faster and easier for audiologists and dispensers to fit hearing aids will enable them to serve more customers and offer lower prices, making up a lower profit margin with a higher volume of sales. Sonova’s Sona hearing aid brand is an attempt to lower stocking costs with an upgradeable product platform to accelerate the fitting process for customers with mild hearing loss, but so far it hasn’t had a huge impact on the overall market. Others are working on faster, easier and less invasive hearing tests that would provide better results than today’s lengthy procedure while lowering costs and making it easier to attract more hearing-aid users, especially at the entry level of the market. The industry could use a lot more investment in those kinds of experiments. But until they result in higher sales volumes, these experiments require long-term investment.
3. Integrate Seamlessly With Third-Party Peripherals: The major recent investments by the top hearing aid companies in wireless communication with peripherals to hook up your hearing aids with your Bluetooth phone or your TV audio have not yet delivered affordable solutions. Many of the wireless communications schemes are proprietary, locking the user into one manufacturer’s brand of hearing aids and commanding premium prices. More compatibility with industry standards and more integration with third-party peripherals and assistive listening devices will expand the market by serving more customers at more affordable prices. But it requires an investment in innovations that will lower costs, not just provide new or higher performance.

Those are only three areas where even a fraction of a half-billion-dollar investment could be a game changer for the hearing aid industry. Unfortunately, all those investments require a long-term focus and staying power, because results won’t be obvious overnight. So don’t be surprised if we see the kind of short-term investment activity that gets immediate results and keeps shareholders happy instead. A couple of quick acquisitions of smaller hearing aid companies could reduce overall back office costs, enlarge share of market, and improve profits in short order.

But if acquisitions and other short-term investments don’t result in new products, new thinking, or new ways of reaching and serving new market segments–especially the millions of entry-level consumers with mild untreated hearing loss–then we’ll see more of the same in the hearing aid industry. Big players will continue to get bigger by serving the high end of the market. Only by taking the risk to invest in new products and services that could broaden the market with more affordable solutions will we see a step increase in growth rates in the global hearing aid industry.

Newly Renamed Starkey Hearing Technologies Plans To Keep Putting New Wine In New Bottles

Sometimes when a company changes its name, the first thing you think is “old wine in new bottles.” But when Starkey Laboratories, the 45-year-old hearing aid company, today announced its name change to Starkey Hearing Technologies, it reflected how far the company has come in recent years. It also sent a strong signal on where the company is going–toward a future focused on developing new hearing technologies and integrating them into multiple brands of new hearing products for big consumer markets.

In recent years, Starkey has emerged as one of the top five global hearing aid companies, with nearly a billion dollars of sales from a broad line of products that meet consumers’ entire range of hearing needs. Its five hearing aid brands–Audibel, AudioSync, NuEar, MicroTech and the original Starkey brand–are increasingly driven by a common platform of new technologies in digital signal processing, sound processing, miniaturization, wireless connectivity to your phone, TV and other devices, and wireless binaural communication between hearing aids for a more natural balanced sound.

“Over the past decade, we have gone from a manufacturing company to a global technology company,” Jerry Ruzicka, President of Starkey Hearing Technologies, said in a news release. “The name change better aligns with both who we are as an organization, as well as our focus on innovation, technology and the diverse customers we serve.”

Starkey was founded in Minnesota by William Austin, who has devoted more time in recent years to philanthropy. His Starkey Hearing Foundation to date has given away more than 500,000 hearing aids to people in need in the U.S. and around the world, with a commitment to giving away more than 100,000 hearing aids annually and a goal of one million more this decade. In the meantime, Starkey’s new generation of operating leadership has poured money into R&D and new-product development, and the results are starting to make a big impact on hearing-industry markets.

Once known more for its sales strength than leadership in innovation, in recent years Starkey caught up to and in many instances surpassed other leading hearing-aid manufacturers in developing and promoting hot new technologies. Just this week the company’s new AMP “invisible” hearing aid is being honored at the International Consumer Electronics Show with a 2012 Innovations Design and Engineering Award.

But the newly named Starkey Hearing Technologies won’t be able to rest on its laurels, or its name change, to continue competing successfully in the increasingly competitive global high-end hearing technology industry, where all the leaders are driving the advanced technologies in their hearing aids into consumer products for markets such as high-tend audio, Bluetooth phones, headsets and earphones, and wireless devices.

Industry leader Sonova Group, whose Phonak brand has been both a technology and a marketing leader for years, has continued to drive innovation in sound processing and wireless technologies. GN Store Nord, parent of ReSound hearing aids, also has a Netcom headset division that is driving into industrial hearing protection and consumer markets for earphones and headsets including the popular Jabra bluetooth phone earpieces. And Oticon hearing-aid parent William Demant’s similar push into consumer hearing technologies is led by its high-end Sennheiser headsets and other well-known audio brands.

Lantos Technologies Has A Working Demonstration Of World’s First Digital Ear Canal Scanner

Lantos Technologies, developer of a 3D digital ear canal scanner that could be a game changer for the hearing-aid industry and consumer audio business, has been demonstrating its technology at the Starkey Laboratories 2012 Hearing Innovation Expo in Las Vegas. Audiologists at the conference Tweeted about the “wow” effect of a product that’s slick, comfortable and easy to use. To see a demonstration, click on the video:

The Massachusetts company calls its product “the world’s first intra-aural 3D scanning device.” It is a direct, digital, 3D scanner capable of measuring ear canal shape and tissue compliance to produce a highly accurate map of the ear canal. It will eliminate the uncertainties associated with manual fits, greatly improving the performance of custom made ear products across a wide variety of markets ranging from hearing aids, to headsets and earphones for iPods, MP3 players and high-end audio applications, and industrial hearing protection.

On The Starkey Labs Drawing Boards: New Xperia Brand Of “Instant-Fit Custom” Hearing Aids Will Integrate Wireless Feature Set

Sources at the Starkey Laboratories 2012 Hearing Innovations Expo in Las Vegas report that company representatives today provided a glimpse of a new Xperia brand of “Instant-Fit Custom Hearing Aids” that will integrate Starkey’s popular Wi-Series wireless technologies featuring Bluetooth phone connectivity, TV audio and MP3 streaming, and other communication direct into the hearing aids.

The new hearing aids feature an innovative in-the-canal (ITC) design which has a removable earbud that fits in the ear canal, with a housing for the processor unit that sits in the concha of the outer ear.

The unit looks like a custom hearing aid but can be fitted for most ears. And, rather than an old-fashioned half-shell or full-shell design, it bears more of a resemblance to a contemporary Bluetooth earpiece or high-tech earphones.

A big selling point apparently will be the same Starkey wireless capabilities now found in company’s very popular open-fit on-the-ear Wi series, including pairing with the Starkey Surflink remote streamer for communication direct to the hearing aids with multiple peripheral devices and binaural wireless communication between the left and right hearing aids.

There was also talk of a broader line of in-the-ear products to come, including a completely-in-the-canal (CIC) SecretEar hearing aid with the same complete wireless feature set.

Starkey has raced to compete with other major manufacturers in delivering wireless functionality following major announcements over the past two years by Widex, ReSound, Oticon, Phonak and others. Starkey sources say the Wi Series wireless feature set has proven highly popular with audiologists, who have asked for the same functionality in more form factors, especially in-the-ear custom-style products.

Starkey Laboratories Research Shows ‘Invisibility’ Is One Of Top Five Factors In Consumers’ Hearing Aid Choice

According to new market research, “invisibility” is one of the top five factors customers consider when buying a hearing aid, according to a presentation by a senior Starkey Laboratories executive yesterday at the 2012 Starkey Hearing Innovations Expo in Las Vegas. The research (Chart 1) reveals that consumers are less interested in what brand of hearing aid they are buying than other factors such as: 1) price; 2) sound quality; 3) form factor; 4) visibility/invisibility; and 5) customer service.

More than most other major global hearing aid manufacturers, Starkey Labs has focused development and marketing resources on the invisible hearing aid market over the past two years. Now the presentation by Dennis Van Vliet, Au.D., Starkey’s Senior Director of Professional Relations, explains why: the prized Baby Boomer market segment is far more receptive to “invisible” high-tech solutions than the previous generation of hearing aid users. In addition to the cosmetic appeal of a hearing aid no one knows you are wearing, today’s techno-savvy Boomers, who are attracted to high-tech gadgetry in general, are fascinated by the tiny new hearing systems that can pack more power and performance into a tiny package that sits deep within your ear canal than the huge behind-the-ear models that were the norm only a few years ago.

I’m not at the conference but received a copy of the presentation, which is packed with interesting new information, including a fascinating comparison (Chart 2) between consumers above 65 years old, who are generally averse to technology and less interested in fashion and an active lifestyle, versus Baby-Boom generation consumers aged 41 to 64 who are overwhelmingly interested in new tech solutions that fit in with an active lifestyle. My take on the data is that the Boomers are not put off by the “stigma” of being seen wearing hearing aids so much as attracted to slick new well-designed products that combine superior form with high-tech function.

Starkey’s “invisible” product line now includes the entry-level AMP hearing aids and its high-performance Soundlens products, both of which sit deep within the ear canal. Starkey’s Xino product family is a on open-fit, behind-the-ear, receiver in the canal (RIC) product that is so tiny it is also marketed in the “invisible” category. Starkey has marketed the AMP system aggressively as a first-time solution for users who would not otherwise want to wear hearing aids.

I’ve gotten comments on my previous posts about Starkey’s invisible hearing aid marketing campaigns from readers who say the company is playing into stereotypes about hearing aids as something to be ashamed of and something to hide from others. I’m sure there are plenty of consumers out there worried about the lingering stigma of having to use hearing aids, but I think something else is going on in the market as well. I like to think tech-savvy Baby-Boom consumers are attracted more to the positive aspects of well-designed hearing products that push the limits of miniaturization and performance than to the fact that they are afraid of being seen wearing hearing aids.

Panasonic Introduces New Receiver-In-The-Canal Hearing Aids Plus Wireless ‘Hearing Hub’

The Panasonic Healthcare Group has expanded its hearing-aid product line with the new R1-W Series of receiver-in-the-canal (RIC) hearing instruments that moves the company closer to the top ranks of global hearing-system manufacturers.

Among other things, the new product line features a Hearing Hub offering wireless connectivity with peripherals including Bluetooth phones and a transmitter that sends TV audio signals directly into the hearing aids.

Panasonic, which has been selling hearing aids in Japan for decades, only recently entered the North American market with its 4 Series and JZ Series open-fit and body-worn hearing aids. The new R1-W Series provides more power to address a broader range of users’ hearing problems including moderate-to-severe hearing loss. In addition to the wireless peripherals, other new features such include remote volume control and the ability to record voice memos such as personal reminders and phone numbers that can be played back through the hearing aids.

Although Panasonic is still playing catch-up to the world’s largest hearing-aid brands such as Phonak, Oticon, Widex, Starkey and ReSound, the new more powerful hearing aids plus wireless peripherals are a big step toward more parity with competitors who have made wireless communication a key selling point in their new products over the past year.

“With the new R1-W series, Panasonic has introduced a line of hearing instruments with sound quality design that equals or exceeds anything we have seen in the industry,” said Delain D. Wright, Director of Sales, Panasonic Healthcare Group, who called the R1-W series “the next phase” of Panasonic’s long-term plan to establish a major presence in the global hearing-aid market.

The Hearing Hub allows users to wirelessly connect the hearing instrument to Bluetooth®-compatible* mobile phones, landlines and a Panasonic Audio Transmitter, which plugs into a television’s audio-output port to transmit sound wirelessly into the R1-W Series hearing aids. And the remote control allows users to easily and discreetly adjust the volume level and programs of their hearing instruments.

“As a new player in the US hearing market and with our brand strength, we are finding that professionals are embracing our vision to deliver meaningful solutions to a broad segment of people who want to hear better,” Wright said.

CES Preview: Will 2012 Be The Year Of The Personal Sound Amplification Product (PSAP)?

As hearing-aid technologies go mainstream, more traditional niche manufacturers are making a leap and attending the Consumer Electronics Show (CES), the monster trade show held in Las Vegas every January that displays the wares of thousands of consumer brands. In 2012, I’ll be looking for examples of new Personal Sound Amplification Products (PSAPs), which are just like hearing aids, but sold over the counter without a prescription.

In January 2011 we saw a range of hearing-related companies at the show, including VOXX International (formerly Audiovox) subsidiaries RCA and Acoustic Research, which introduced their own new PSAPs. Hamilton CapTel and TV Ears also got together at CES 2011 to offer a range of assistive listening devices for hard-of-hearing consumers. Traditional hearing-aid manufacturers Starkey Laboratories and Beltone earned CES Innovation Honors for their new products. And Etymotic Research won a 2011 CES Innovation award for new high-tech ear plugs that protect soldiers’ hearing in war zones.

At the January 2012 CES show I am betting we will see more PSAPs. It’s simply too easy a market to enter for mainstream consumer electronics companies. And even if the PSAP remains a niche or specialty product, I expect to see more of them in the big consumer electronics retail chains in 2012, with more news like the October 26 announcement by RCA that its Symphonix PSAP will be available in more than 2,000 Radio Shack stores. So I’d love to hear from any readers who hear about other PSAPs that will be introduced or demonstrated at CES 2012.

Panasonic’s New JZ Power Hearing System Brings Back “Body-Worn” Hearing Aids In A Sleek New High-Tech Package

Panasonic has given new life to a very old idea–”body-worn” hearing aids–with the new Panasonic JZ Power hearing system. But the new Panasonic product is unlike those original hearing aids of more than 50 years ago, which required a cumbersome sound processing unit hanging from the neck, wired to bulky, unattractive hearing aids that by today’s standards provided no more than very simple linear amplification.

The Panasonic JZ Power system is more like a sleek Apple iPod, with a nice set of high-tech ear buds that provide stereo sound amplified to your exact hearing profile. The next step up from the original Panasonic JZ hearing system, the Panasonic JZ Power has five channels instead of three and a frequency range from 200 to 6400 Hz, a major expansion in fitting range over the original JZ’s 220 t0 4300 Hz range.

Available in blue, black and silver, the Panasonic JZ Power is a palm-sized unit featuring an LCD screen, noise reduction, wind noise management, feedback management, left-right balance, a slide power switch and easily accessible volume control, and four “Scene Selector” program settings for standard, music, party and indoors listening environments. The stereo binaural headset (earphone with microphones) is designed to comfortably fit into the ear canal and stay in place for long hours of wear. The JZ Power also includes a rechargeable battery with a charging cradle for the main unit, which can also use commercial AAA alkaline batteries.

“Panasonic is committed to a series of unique hearing solutions using the JZ form factor,” said Delain D. Wright, Director of Sales, Panasonic Corporation of North America, Healthcare Group. “With the new JZ Power Panasonic can help an even broader segment of the hearing impaired who are challenged by the difficulty of managing traditional hearing instruments.”

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