Wireless audio streaming technology supplier, BridgeCo, was revealed over the last week to be the vendor providing AirPlay-enabling hardware to third-party speaker and audio system manufacturers. They are currently enabling iHome, Denon and others via their JukeBlox modular circuit design which contains a networked media processor at its core along with the mixed signal circuits required for carrying out home networking duties, required by AirPlay.
Note from BridgeCo that AirPlay requires numerous capabilities above and beyond a basic networking stack, including:
- Authentication, communication and streaming with iTunes Mac/PC
- Support for Apple “Remote” iPhone/iPad/iPod touch control and system interface/control commands
- Simplified network setup featuring WPS, JB Connect and Bonjour/uPnP discovery
- Fail-safe system code upgrade support options – internet direct, home network or USB
- System management web pages
BridgeCo's offering
The JukeBlox platform is capable of tons of stuff. However, Apple's AirPlay finally gives some rationalization to the market, in the form of clear marketing and huge installed base, for these streaming audio technologies in general. Even as Gene Sheridan, BridgeCo CEO notes in a CNBC article,
"(Apple) know(s) how to take a complex and feature-rich technology and narrow it." How narrow? Sheridan said after getting a peek inside, BridgeCo provided Apple with a long list of what it could offer the company. "They picked three."
Make no mistake, BridgeCo's ten years in networked audio has created a fairly large offering of pretty cool capabilities: Pandora and Rhapsody streaming, Sirius/XM, DLNA, UPnP. Going forward however, it is reasonable to assume the volume opportunities for BridgeCo will surpass and marginalize the relevance of the litany of non-AirPlay specific capabilities (however cool they are). Which for companies like iHome, and thus many mainstream consumers, means the AirPlay-enabling solution will become more cost-effective in time, as well. The hardware required to pull off all those nifty features ain't cheap, and as Apple said, they only need three of them!
All that aside, BridgeCo did their homework, stayed close to Apple, and when the opportunity finally availed itself, they struck and got the big design win for AirPlay audio. Commendable and impressive for a small company to not lose focus on where their volume opportunities resided.
What does it mean for product makers?
For product makers like iHome, it is vital to understand what BridgeCo's technology does and does not provide. Product makers spend a lot of time and effort to make features come to life and provide meaning to consumers in the context of their lifestyles. For AirPlay, it is no different. BridgeCo has to support and work to enable end-products to meet the requirements their makers define, balancing what is possible with what is meaningful. Product makers spend the majority of their time figuring out a product that:
- delivers the highlights of what AirPlay makes possible
- provides a simple out-of-box experience
- offers a bona-fide sound solution
- keeps the price of the product palatable
These make up the key challenges for defining a successful AirPlay product. So while Apple has opened up a protocol and provided key IP, and BridgeCo has implemented those features into a hardware module, there is still lots of work to make it appealing to end-users and market is succesfully before AirPlay or any of it's enabled products become widespread hits.
Take-away
It's a big multi-party effort to develop products in Apple's ecosystem, and for some companies, it's a great business. BridgeCo has wiggled in and carved out a sandbox that may also provide it a path to profitability that it's been seeking for the last decade.
For BridgeCo, which still isn't profitable (but hopes to be so by the second half of next year), the impact of the Apple deal is immense. It should provide more than half the company's revenues, though, even without the Apple deal, Sheridan says the company's backlog "is at an all-time high." Still, with 120 million people owning some sort of Apple i-product, the opportunities are "intimidating", and Sheridan has spent a good part of the last year lining up suppliers to make sure there won't be any manufacturing glitches.
It's execution time.