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Why are AVRs and AVPs so expensive?

TonyJZX

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i'm surprised HTIB is so popular... they're still a pain in the ass to wire and setup

and you're getting bottom of the barrel components with basically no upgradeablity

eg. those Yamaha costco whatever HITB basic reciever kits sub $500

i do still see the market spread out a bit... but i do see the high end get higher... in the same way the only people who use SLRs are monied enthusiasts

i do also think the expansion to 7.2 or more is a part of this... like for many 5.1 is enough of a pain in the ass... so now you want ceiling speakers too??

and i do get the idea that packing more and more in is going to lead to bad outcomes

we expect network support, BT and all the usual stuff... so like cell phones are now $1,000+ for good ones then now good AVRs are going to $1,500+

perhaps also we see people in smaller living areas too?
 

TSB

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Yeah but they use the same software for a long time. They also share it across their entire lineup so it's not model specific. It's not like they have to build a new app for each model every year from scratch. I'm sure Marantz and Denon share the same software and hardware for the menu and for storing information so the economies of scale are huge compared to the old days. Same for Pioneer, Onkyo, and Integra. If anything, it was probably more difficult to write the software in the old days as software development has advanced massively and you can have graphical web user interfaces as opposed to building a screen app from scratch and placing things at X and Y positions and building custom controls.
You're right that a lot of the software will be re-used, but the cost of development of even small customizations can be considerable

(I work at a company that provides such software to a lot of brands)
 

Chrispy

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I was looking at the Emotiva BasX 7 channel class A/B Amplifier which comes with a toroidal and puts out 90 watts. Reading online it seems that it has 6 x 10,000 capacitors so it beats every AVR made in the past 15 years. It also weighs 30lbs which is more than many AVRs weigh that cost $2,000-$3,000.

Price $699

Then there's the Outlaw Model 7000 which ups the wattage to 130 watts and weighs 60 lbs; nearly as much as the heaviest current AVR the Denon which costs $6,500.

Price $999

A couple of questions spring to mind immediately after seeing these products:

1. Why aren't we seeing AVPs in the same price range as these amplifiers?

2. How can today's AVRs justify their prices?


These amps come with toroidals and I'm pretty sure the only thing that compares to the Outlaw powerwise is the Rotel RAP-1580 MkII which costs $5,500 and weighs as much with all the video processing.

How can AVRs like the Marantz SR8015 (the last toroidal with the Rotel) justify its price when the power delivery is at best comparable to $1,000 amplifiers? That means the video processing has to be worth $3,000 which is laughable when it comes with just 1 HDMI 2.1 connection 4 years after HDMI 2.1 was released.

But at least the aforementioned Marantz and Rotel had toroidal transformers which are a staple of high-end audio equipment (Luxman and SMPS being the exception). How can all the new models justify their prices when they are not even toroidal and deliver much less power? Their amp section is worth a maximum of $700 to $1,000 for all those AVRs and we're not even comparing apples to apples.

After all, most AVRs today just need a few HDMI connections along a circuit board with a DAC. It's not like the old days with Composite, S-Video, Component, HDMI where half the rear of the AVR was dedicated to video connections. Plus, you need very little power for the processing part as opposed to the speaker amplification part.

If we look at 3700h, an AVR that was very popular and used with external amps, it cost $1,000 when it was launched not long ago. Let's be generous and make it $1,200 to account for inflation and to keep Denon smiling. Let's now convert it to an AVP stripping it of its amplification (nearly half of the unit) dropping the weight from 27lbs to, say, 15lbs by adding a little bit of extra strength to the smaller chassis to make it a bit more audiophile. Let's assume the removal of the amplification and replacement with a basic power supply to run the unit as an AVP shaved $400 off the price ($100 in cost). Now we're looking at a $800 small sized near audiophile AVP without the mumbo jumbo. Let's add a little bit of niceties that cost $50 in parts and labor and bring the price to $1,000 or just sell it for $1,000.

Here's a $1,000 AVP. Okay, Denon is greedy and it would cost $1,500 in today's Denon world. Let's go along with that - Denon can charge $1,500 and Marantz can go bonkers and charge $1,600 since they're Ferraris!

Onkyo, Pioneer, and Integra can offer it for a lower price.

So now we have a decent AVP that's going to be home friendly and a decent value. Let's add a toroidal amp and turn it into an AVR like the BASX A7. We'll charge more than $700 since there are complexities to a single box - you need more than a napkin to design that. Instead of $1,700 ($1,000 for the AVP + $700 for the amplification), let's make it $2,500 and bump up the quality a bit adding $100 in better parts.

Now we have a world class AVR. This unit costs $2,500 and is better than the Cinema 40 and is still profitable as a single-box. We have $150 in parts improvement (massive in terms of quality, who knows a 5th leg maybe???:)) over the Cinema 40, and we also have a toroidal transformer like the SR8015 and we're saving $1,000. We slap the Denon and Marantz badge on it.

Bottomline mid-range AVPs should cost $1,500 and high-end AVRs should cost $2,500-$3,000 and should be better than current models.
Just saw this. Some odd claims/assumptions IMO. If you want expensive for lesser capabilities, check out many current integrated 2ch amps.

Weight is only so meaningful. Class D will simply be lighter than A or A/B. Also more efficient. YMMV.

Most of the pricing is due the market as well as marketing. Pre-pros will be more expensive as they don't sell nearly as many of them compared to avrs. No particular good reason Marantz is retailed higher than Denon here in the US for avrs either....especially considering the amount they share vs do not share.
 
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techsamurai

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Most of the pricing is due the market as well as marketing. Pre-pros will be more expensive as they don't sell nearly as many of them compared to avrs. No particular good reason Marantz is retailed higher than Denon here in the US for avrs either....especially considering the amount they share vs do not share.

Well, I just checked Crutchfield and there are 9 pre/pros ranging in price from $3,200 to $8,000.

There are 63 AVRs - let's make it 55 removing duplicates/outlet sales etc.

So 1 Pre/Pro for every 6 AVRs including the flooding of the market at the cheap end with cheap quality products.

How many pre/pros do they sell compared to AVRs? If it's 1 Pre/Pro to every 6 AVRs, each of the pre/pro models are selling 1:1. I doubt that because the starting price is $3,200 for the Marantz 7706 and $3,200 is a high price for an AVR.

But even if it's 1 to 10, then it's quite possible that the pre/pros are outselling models like the 8015 or the 8500.

9 models implies that sales are a-booming otherwise they would not be making any of them and your cheapest option for a pre/pro would be Trinnov 32 Altitude. In fact, Pre/Pros are selling so well that Marantz is evidently charging $7,000 for its new model. They are literally doubling down on their separates.

My point being that you can easily take a 3800h, upgrade the LCR DACs to Sabre9018s, remove the power stuff, add a bit of copper or tin on top with some scotch tap and a split toe for ultimate stability, and sell that for $1,500 and it will probably outsell the 3800H by a massive factor cause who in their right state of mind would buy the 3800H when the other unit compares to a $5,000 AVP and you can just slap an external power supply for $700 and you're at $6,000 in terms of AVR sound quality.

If you look at the Denon Pro AVP, these things existed and cost $1,000 and were probably better built than the 8805 costing 5 times more.
 

Chrispy

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Well, I just checked Crutchfield and there are 9 pre/pros ranging in price from $3,200 to $8,000.

There are 63 AVRs - let's make it 55 removing duplicates/outlet sales etc.

So 1 Pre/Pro for every 6 AVRs including the flooding of the market at the cheap end with cheap quality products.

How many pre/pros do they sell compared to AVRs? If it's 1 Pre/Pro to every 6 AVRs, each of the pre/pro models are selling 1:1. I doubt that because the starting price is $3,200 for the Marantz 7706 and $3,200 is a high price for an AVR.

But even if it's 1 to 10, then it's quite possible that the pre/pros are outselling models like the 8015 or the 8500.

9 models implies that sales are a-booming otherwise they would not be making any of them and your cheapest option for a pre/pro would be Trinnov 32 Altitude. In fact, Pre/Pros are selling so well that Marantz is evidently charging $7,000 for its new model. They are literally doubling down on their separates.

My point being that you can easily take a 3800h, upgrade the LCR DACs to Sabre9018s, remove the power stuff, add a bit of copper or tin on top with some scotch tap and a split toe for ultimate stability, and sell that for $1,500 and it will probably outsell the 3800H by a massive factor cause who in their right state of mind would buy the 3800H when the other unit compares to a $5,000 AVP and you can just slap an external power supply for $700 and you're at $6,000 in terms of AVR sound quality.

If you look at the Denon Pro AVP, these things existed and cost $1,000 and were probably better built than the 8805 costing 5 times more.
From what an "insider" on another forum mentioned at least for US sales that Denon was 8x Marantz....

I have old 2dh separates and the hype for those at the time was very similar....and without much merit.
 
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techsamurai

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From what an "insider" on another forum mentioned at least for US sales that Denon was 8x Marantz....

I have old 2dh separates and the hype for those at the time was very similar....and without much merit.
Are you saying Denon outsells Marantz 8 to 1? That'd be quite a shock.

What's 2dh?
 
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techsamurai

techsamurai

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i'm surprised HTIB is so popular... they're still a pain in the ass to wire and setup

i do also think the expansion to 7.2 or more is a part of this... like for many 5.1 is enough of a pain in the ass... so now you want ceiling speakers too??

You're right - Atmos complicated home theater without much benefit as it didn't impact the bed layer speakers (5 or 7). To get the real benefit they say you need at least 4 in-ceiling speakers and they're very tough to install and, if visible, their constant appearance completely nullifies any surround benefits you'll get.

I watched Andrew Robinson's video with the professional contractors installing 6 speakers in the ceiling and that was a video that all folks considering Atmos should watch. He put surrounds in the ceiling allowing him to change configurations to x.x.6 atmos, 2.x.4 or 4.x.2 if he chose. It's actually a very smart and economical way to do Atmos but you will need professional contractors unless you're very handy with cutting drywall in the ceiling (it's tough as your hands need to point up) and going through insulation.

I have cathedral ceilings so it's not an option for me as it would destroy the look of the ceilings but I did put 2 in-ceiling speakers in my basement before Atmos with 2 surround speakers in the ceiling before it was finished. If Atmos existed, I would have put 6.

It's not perfect sonically as the surround effects would be tough to tell apart from the Atmos but it would be my recommendation to anyone for Atmos. Take the hit in the construction by putting 6 in-ceiling speakers to avoid having 9 speakers in your living space. The installation cost of putting 2 in-ceiling speakers would be the same as 6 since the 4 extra cables would route the same way so it's a no-brainer for folks with flat ceilings.
 

Jbrunwa

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There’s a lot of extra features that could be dropped if marketing would allow. Eliminating video switching could bring down cost and likely improve audio performance. My TV’s already have 4 HDMI inputs and one with eARC. Even my $265 TCL Roku TV has them. So I don’t need them in my AVR.

I repurposed my old AVR, for a 5.1 system with toslink from TV to my old B&K Reference 50 and it sounds fantastic. Oh, and no switching issues when changing inputs. Sure, it would be nice to have one HDMI audio only input with Atmos.

Also I don’t need an AM/FM tuner, so get rid of that.
 
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techsamurai

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There’s a lot of extra features that could be dropped if marketing would allow. Eliminating video switching could bring down cost and likely improve audio performance. My TV’s already have 4 HDMI inputs and one with eARC. Even my $265 TCL Roku TV has them. So I don’t need them in my AVR.

That's actually a fair point because eventually we will have HDMI 2.2 or 3.0 and at that point the AVR's video switching is obsolete and eArc will be the only option to get sound and the higher spec image. The only issue I can see is the Pentonic chip used by Sony and other manufacturers which is still not capable of HDMI 2.1 on all 4 inputs despite the fact that HDMI 2.1 is now 5 years old and the longest HDMI spec.

It should also be noted that HDMI board failure is one of the most likely causes of death for an AVR and irrepairable as the HDMI boards are usually not available after a few years so eliminating the HDMI board except for the eArc and the interference caused by the electronics could be a feature that many of us will not miss.

I think video switching was more necessary in the days when you had 4 different connections like Composite, S-Video, Component, and HDMI. Nowadays, they only support HDMI and they had massive issues with HDMI 2.1 making a lot of AVRs rely on eArc.

I repurposed my old AVR, for a 5.1 system with toslink from TV to my old B&K Reference 50 and it sounds fantastic. Oh, and no switching issues when changing inputs. Sure, it would be nice to have one HDMI audio only input with Atmos.

Yeah, I did the same for a while. I expected to hate dropping back to DTS (vs DTS Master HD) on Blurays and DD (vs DD+) in streaming. I'd done a comparison of DD vs DD+ on an AVR and I found DD+ to be better in an A/B test, particularly the musical intro to the movie No Sudden Move. The intro to Stranger Things was less convincing - if I recall correctly, I was torn when listening to it in DD and DD+.

But I watched a few movies in DTS (Top Gun and No Time To Die) and it got such a reaction out of me and my family that DTS Master HD (or Dolby True HD) had not gotten and that has made me question everything. I blasted the intro to Top Gun to 100db and it probably was better than my real IMAX theater with its massive THX speakers. The intro to No Time To Die with Hans Zimmer and Billie Eilish, was crazy. My daughter said "wow, that was just incredible!" and I was too busy trying to fathom how DTS can sound like that.

I'd love to see a blind test of DTS vs DTS Master HD with some audiophiles with those 2 scenes. I'm not sure DTS Master HD would come out on top.
 
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bungle

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I'd love to see a blind test of DTS vs DTS Master HD with some audiophiles with those 2 scenes. I'm not sure DTS Master HD would come out on top.
You need same mastering/mixing on both, otherwise it is apples to oranges. DTS was in many cases mastered/mixed differently than Dolby Digital (same with different versions of these). There were even fights between these companies because of that (there were of course technical differences too but I'd argue the biggest difference came from mastering/mixing, not sure though why DTS in general was considered better during the time, perhaps it was just mixed louder or bass bumped, similar to CD compression wars).
 
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HooStat

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Keep in mind that the ENTIRE POINT of a receiver is that the company gets to choose the feature set that maximizes profit. Just because they "could" remove this or that doesn't mean it would be meaningful for them to do so. Or that it would actually save any money for the customer. They do not necessarily price using a "cost plus" model. Many companies do not. And you can be sure that if something can be safely removed from a receiver, they will do it -- and that will be the company's reward for efficiency.
 
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DavidMcRoy

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If you stream everything, as I do, you can let your smart TV do all the source switching via its own built-in apps and its HDMI inputs. Now all you need is an “audio box” with an HDMI eARC input, a surround decoder and pre-outs. Said “audio box” needs no video switching or processing at all. Maybe throw in S/PDIF and ditch the AM/FM tuner.

For that matter, the “audio box” could be built into the smart TV, and now you have a TV set with audio pre-outs that can directly feed power amps and speakers (or active speakers.) Too bad Emotiva and Outlaw aren’t likely to get into the integrated smart TV business, but the set makers could charge extra for one and there ought to be considerable savings in manufacturing. Make them "Dolby Atmos-ready" with 7.2.4 outputs or whatever flavor, and consumers have added incentive to buy more amps and speakers.
 
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If you stream everything, as I do, you can let your smart TV do all the source switching via its own built-in apps and its HDMI inputs. Now all you need is an “audio box” with an HDMI eARC input, a surround decoder and pre-outs. Said “audio box” needs no video switching or processing at all. Maybe throw in S/PDIF and ditch the AM/FM tuner.

For that matter, the “audio box” could be built into the smart TV, and now you have a TV set with audio pre-outs that can directly feed power amps and speakers (or active speakers.) Too bad Emotiva and Outlaw aren’t likely to get into the integrated smart TV business, but the set makers could charge extra for one and there ought to be considerable savings in manufacturing. Make them "Dolby Atmos-ready" with 7.2.4 outputs or whatever flavor, and consumers have added incentive to buy more amps and speakers.
Not many TV's have audio out anymore. Not even 3.5 jack.
 

DavidMcRoy

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There are a number of HDMI "Audio Break out" boxes on the market...
I've seen those but since I'm committed to Dolby Atmos capability I haven't really studied what they can do. They can pass 5.1, at least, but none seem to support 7.2.4. (I continue using an AVR with Dolby Atmos decoding and 9.2 pre-outs in a 7.2.4 system.)
 
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DavidMcRoy

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Not many TV's have audio out anymore. Not even 3.5 jack.
I wonder if maintaining the security of hdcp via HDMI is the main issue there. I could envision HDMI out from a Smart TV all the way to an active speaker with an hdcp handshake being required.
 

TonyJZX

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just doing a random check of some brand name tvs here

samsung sony lg

they all have optical out and 3.5 jack

i'm assuming the chinese all do this as well since they're not likely 'courageous' enough to remove expected ports
 

-Matt-

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Be aware that the ports provided are subject to regional variations...

These are the US and UK versions of the LG CX OLED:

US:
60356059d920880018591993.jpg


UK:
IMG_1915-1536x744.jpg


I was disappointed to find that my UK version did not come with an RS232 port. Both have audio outs - not that I would wish to use anything other than HDMI.
 
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techsamurai

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Now all you need is an “audio box” with an HDMI eARC input, a surround decoder and pre-outs. Said “audio box” needs no video switching or processing at all.

I think the video switching is the only thing that could be removed along with the AM/FM tuner. I can't see TVs having the audio processing in them but they have covered the video switching fairly well with 4 HDMI 2.1 inputs. The eArc chews up 1 port so that leaves 3 free ports - 2 for consoles and 1 for a UHD player. It'd be nice to have the option to add a smart box like Apple TV of Google Chrome.

But if your AVR has 6 HDMI inputs and your TV has 4, you can accept 9 devices and that's overkill.

But more importantly, it's not expensive for manufacturers to add them. The Denon AVR-S570BT costs $399 and has 4 HDMI 2.1 inputs so it's really not that expensive.

Let's just slap 4 HDMI 2.1 inputs to the midrange AVP at $1,000-$1,500 and high-end AVR at $2,000-$2,500 and call it a day. Today's AVRs and AVPs have almost no video and audio connections compared to the old days where you had 30 inputs just for video and audio.

They can add a few HDMI connections just for the V part in the AVP and AVR...:)
 
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