Tuesday, February 10, 2009

R.I.P. Theta Digital

July 5, 2009 Update: Since this post is up so high on Google searches for "Theta Digital" I want to send you to the latest notes here: Theta: We're Not Dead Yet! complete with a comment from Theta, and my own reply.

Theta Digital, one of the early innovators in digital music and cinema reproduction for the home is hereby presumed dead. The death seems to have occured sometime between an announcement in November, 2007 that it had been acquired by Amplifier Technologies Inc. and now. Since that time Theta's website ceased all updates and no new products have shipped.

That's not really the first nail in the coffin. Loyal Theta owners have been complaining for years that Theta failed to do two things. One was provide an upgrade path to the Casanova for the Dolby Digital EX/dts ES 7.1 formats (which I personally believe were a HUGE waste of money, and could have been easily fixed with outboard adapters) but another more serious problem was the lack of HDMI support of any kind. As you probably remember HDMI ready TV sets started appearing in 2003. Six years later in 2009 all Theta can muster is non-demonstrated HDMI backplate for the Theta Casablanca as seen in this Stereophile blog. What this means is that customers who have bought the most expensive cinema processor available in part because of promised upgrade paths can't even get the latest BluRay audio formats (DTS-HD Master Audio and Dolby TrueHD) to play in their native modes. However, I've read somewhere that the next Casanova Upgrade is going to be around $3,000 to $5,000. Excuse me? For about the price you can go and buy a new Cary Audio 11a and 11v combo, then throw them away in 3 years when the next standards are available.

Look, I don't know for sure if Theta has turned the lights out or not, but at this point I will say that ATI has failed to capitalize on it's investment in Theta, and missed shipping products in time to stay alive and keep their loyal base happy. For all intents and purposes, the value of the asset (Theta Digital) has probably gone down to near zero. All the Theta owners have have better options from other vendors. I'm just surprised ATI hasn't figured this out yet.

Now, here's my armchair quarter-backing. What Theta should have done was done what Cary did. Put together an outboard video processor which pulled the audio out of the HDMI signal, and into existing Casablanca's. I'm sure that what is killing them is the major redesign of the guts of the Casanova they are attempting today. My guess is that they ran into one of the classic engineering mistakes. They forgot how much time had actually gone into getting the first Casablanca done right, and they underestimated how much work the new layout was going to take. Now they're 80% done with a difficult design and they can't back out, and they can't go forward, so they wait until some one points at the elephant in the room and decides to either reinvent the brand, or turns out the lights. At the same time, Cary is in a much better situation. They have completely overshadowed what even the promised Casablanca could do for significantly less. The one missing feature is the ability to pick your own DAC's, and if Cary really gets into it, they could do that too with digital outputs and a six shooter like external volume control.

Again, ALL this is speculation. However, it fits known patterns of death marches. Some one prove me wrong! :)

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