cM :: MORLEY|DIGITAL

Just heard from a custom a/v rep firm earlier this week that Fuze Media, developer of a Vista Media Center wrapper, has closed its doors.  Launched in August of 2007, Fuze introduced a custom Vista Media Center wrapper whose claim to fame was multi-zone audio with granular control.

Just a few weeks ago, they sent letters to customers stating they were no longer in operation and any tech support would be handled by an independent contractor previously associated with the company - at a premium.  Their toll-free number has been disconnected.

Fuze’s business model highlights the problems a technology company has in trying to address the custom A/V market.

1)  They spent their money and resources on developing a wrapper for Vista Media Center that only slightly expanded on its capabilities.  Media Center and the underlying hardware, when introduced into a home theater environment with its own issues of ethernet networking, HDMI, and RF is tough enough to manage on its own without adding an additional layer of proprietary software complexity.

2)  It’s an over-featured product that addresses a VERY small market - its main feature was granular control over multi-room audio, with the ability to individually control individual rooms from one screen.  Second zone audio functionality built into today’s A/V receivers coupled with volume control nobs and a wireless remote will deliver similar functionality for much less - and that’s just one option.

3)  They relied on a CableCARD partner for manufacturing their box whose priorities were divergent from their own.  Fuze was not a Microsoft OEM that was authorized to build their own CableCARD enabled media servers.

4)  They flat out did not understand the custom A/V installation business and the ecosystem of dealers, retailers, installers, and customers who do not have the same technology foundation that e-tailers of these systems do.  In fact, their Texas rep, before they dropped Fuze, used to call me to trouble shoot his CableCARD issues.  Fuze’s decision late last year to license its software to PC companies (only one picked it up - the manufacturer of their boxes) effectively KILLED their dealer network as dealers could no longer make any money on the hardware when people could buy direct.

All in all, Fuze’s model proves that the most important thing about the media center business has nothing to do with bells and whistles but rather policies and procedures.  Vista Media Center, out of the box, provides 95% of the functionality a high-end A/V customer could ever dream of wanting.  Properly training your dealers to sell, and more importantly, not OVERSELL the product by setting expectations and properly training installers on a totally new platform is what makes a product successful in this market.

Until PC companies understand this, they will continue to fail, or be relegated to selling a PC on the internet to technologists and computer geeks.