Will HearingPlanet Still Give Objective Advice About Other Hearing Aid Brands When It Is Owned By Phonak Parent Sonova?

Audiology Online published an intriguing interview yesterday with a senior executive of the The Sonova Group, parent of the Phonak, Lyric and Unitron hearing-aid brands, among others, on why Sonova acquired HearingPlanet, the popular web site that provides detailed information on multiple hearing-aid brands for potential customers. In the AudiologyOnline Q&A, Sonova Group Vice President Alexander Zschokke says the acquisition will enable Sonova to “provide more leads” to the audiologists and other hearing health care professionals who dispense Sonova’s hearing aids. But the one question the interview doesn’t ask is, “Will HearingPlanet still give objective advice about other hearing aid brands when it is owned by Phonak’s parent company?”

HearingPlanet’s success for more than a decade has been based on its ability to offer objective advice to potential purchasers of hearing aids who may be confused about the many choices among different manufacturers’ brands, form factors, product types, and prices. On its web site, HearingPlanet notes that with “numerous brands and styles available,” hearing-aid buyers should “compare prices and technology across brands” and “choose a hearing care provider which offers multiple brands and models so that you can find the right hearing aid for your needs.” It goes on to provide a wealth of information that will help you research the various choices in the market, including a fact-filled comparison chart on 18 different hearing-aid brands that includes major features and pricing.

So there seems to be a potential built-in conflict between Sonova’s stated desire to use HearingPlanet to send more buyers to dispensers of Sonova-owned hearing aid brands, and HearingPlanet’s traditional mission to provide objective advice about multiple brands so customers will find the product that suits them best, regardless of the brand. Of course, this is the real world of commerce, where conflicts of interest abound (see: Goldman Sachs), and it would be self defeating for HearingPlanet to change its winning formula for one that favored one manufacturers’ brands over all others. As of today, the only possible sign of favoritism is the fact that Phonak is the first brand name on the HearingPlanet comparison chart, but that’s not a big deal — anyone who doesn’t look past the first entry on a comparison chart isn’t really looking for comparative information anyway. Otherwise HearingPlanet looks much the same, and we will see if the site changes at all over time.

The acquisition is an interesting example of the consolidation trend in the hearing-aid industry. Phonak’s CEO Valentin Chapero several years ago unsuccessfully attempted to reduce the number of hearing-aid manufacturers with global reach by making a bid to acquire GN ReSound (the acquisition was thwarted by a German antitrust court ruling, which, though later overturned, ended the acquisition bid for good). Since then, financial analysts have said the global hearing aid industry might consolidate through other mergers, through the leading manufacturers increasing their market share, and through the major players acquiring their distribution channels to capture more revenue and gain leverage from vertical integration.

HearingPlanet is a spectacularly successful generator of highly qualified leads to audiologists — in the interview, Sonova’s Zschokke notes that even though most of the people who go to HearingPlanet have never worn a hearing aid before, more than fifty percent of the patients HearingPlanet refers to a hearing health professional in its network go on to purchase hearing aids. So Sonova is smart to want to own HearingPlanet to make sure the leads keep coming to Phonak and its other brands. But let’s hope Sonova doesn’t kill this golden goose by undermining HearingPlanet’s traditional objectivity, depth of information, and excellent advice in any way.

‘Invisible Hearing Aid’ Pioneer Lyric Hearing Is Fast Out Of The Gates In A Market That Is Sure To Draw Plenty Of Competition

Lyric Hearing is only a few years old, but the “invisible hearing aid” pioneer is first out of the gate in a market that is sure to attract plenty of competition. Lyric Hearing Aids are tiny devices placed so deep within the ear canal that it is truly impossible to see them. Because they are so small and located so close to the ear drum, they claim to deliver auditory benefits that normal hearing aids can’t provide. And, once they are inserted, they remain in place 24 hours a day for up to four months, so the user doesn’t have to worry about replacing batteries or keeping track of them when not being worn. Lyric Hearing also has an unusual business model, selling the hearing aids on an annual subscription basis, with old hearing aids removed and replaced with new ones every few months by your audiologist. Just as the transition to soft, extended-wear contact lenses expanded the share of contacts versus regular glasses and changed the dynamics of the vision correction market in substantial ways, Lyric Hearing’s innovation has the potential to dramatically alter the hearing-aid market. How big an impact will Lyric Hearing and other “invisible” hearing aids like it have on the market? It depends largely on the tradeoffs between the many benefits and several significant drawbacks. Read more