IS427:AY1314T1 Europe (G1) - Organizations: Lille: A-Volute

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About A-Volute

A-Volute was founded in 2004. It specialises in binaural-based technologies that are dedicated to offer an immersive 3D audio experience from on conventional stereophonic sound systems.

With A-Volute technologies, lifelike 3D sound can be recreated on any device from any input signal (Stereo, 5.1, 3D) and to any audience, making surround sound an accessible mainstream experience. A-Volute aims to become the new audio standard and bring 3D sound back to the ears of billions of people.

A-Volute is now located in Villeneuve d’Ascq (North of France). A-Volute has worked with many local, financial and technical partners and had many collaborations with well-established clients in diverse industries.

Founding Team

A-Volute was created by Tuyên Pham (CEO) & Ambroise Recht (CTO). They both started to work on their core technology while they were still students at Centrale Lille, a top ten French engineering school. As gaming and music lovers, audio is more than a profession to the founders: it is a vocation.

Technology

Click here to watch a demonstration of A-Volute's technology

3D Sound

3D sound primarily defines all the sound technologies that enables the positioning of sound around the listener to produce a lifelike immersive effect. This could encompass, but is not limited to, surround sound technologies, where multiple speakers are placed around a room to immerse the listener in the center of the action. 3D sound technologies aims to recreate sound in a spatial context such that a listener feels that he is hearing it naturally in real life instead of digitally.

Sound Virtualization

A-Volute has developed a renderer engine which enables them to virtualize sound and recreate standard surround sound systems no matter what audio playback system is used.

Upmix algorithm

A-Volute' upmix algorithm spatializes stereo or multichannel contents and transforms them into surround sound or full 3D contents in order to rediscover the sound's original accuracy.

Customizable HRTF filters

A-Volute offers HRTF (Head Related Transfer Function) customization to users for more comfortable and personalized lifelike sound.

Directional Sound

Nahimic Directional Sound uses acoustic waveguides and combines the principles of parametrical speakers and nonlinear acoustics to confine audio into a directional beam such that the audio cannot be heard outside a narrow region of focus.

Audio Enhancement

A-Volute has developed a wide range of audio effects designed improve the sound quality of electronic mass-market products such as laptops, tablets, and smartphones etc.

Voice Clarity

This effect selects the frequency ranges of human voices and boosts the high frequencies to improve intelligibility. The Voice Clarity also detects and eliminates all the ambient noises.

Noise Gate

Part of A-Volute's algorithms are dedicated to input signal processing. The Noise Gate cuts the unpleasant noises between words or sentences for clearer voice communication.

Dynamic Compressor and Bass Boost

Avolute's compressor measures, analyzes and controls the volume in order to ensure consistent loudness and thus to avoid unintelligible and unpleasantly loud sounds. This effect boosts the low frequencies and makes the audio quality clearer.

Equalizer

Our 8-band-equalizer sets the frequency level and enhances the audio quality of the content.

Smart Noise Reduction

Used in addition to the Noise Gate, this technology has been designed to analyze and estimate the amount of ambiant noise before eliminating them through spectral subtraction.

Audio Correction

A-Volute's technology detects, measures and analyzes the limits of electronic devices to apply adequate digital filters and correct audio.

Stereo Image Correction

Transaural HRTF-based technology that virtually reposition and balance the speakers.

Bandwidth Correction

This technology measures, analyzes and corrects the bandwidth frequency response in compliance with the user's specifications.

Virtual Bass Boost

A-Volute's Virtual Bass Boost creates bass feeling by synthesizing the harmonics of low frequencies that the product’s bandwidth could not deliver.

Business Model

A-Volute offers its solutions through direct sales, with customization options available.

SWOT Analysis

Strengths Adaptable technology for different platform use Wide array of industries to reach out to from end-consumer products, industry equipment, rental, privately owned Wide range of industry collaborations Portfolio: Industry collaborations lend strong credibility Great learning and cross-functional application

Weaknesses Lack of clear differentiation Ambiguous explanation of technology Definition of sound quality is not universal across clients/consumers Consumers more familiar with layman terms (with regard to sound quality): clarity for classical and instrumental, bass for rock, pop genres etc. 3D sound can be recorded manually with multiple microphones The necessity to do it live is circumstantial “Good to have” positioning People may not relate to why they need it or that their customers would be persuaded to pay for an product with such properties.

Opportunities (Expand) Consumer electronics: Mobile devices Products: Smart devices, appliances & platforms Partners: LG, Samsung Applicable to many industries (international, scalable) and competitors have scattered presence Still other areas yet to be touched like e-learning, corporate, training, etc. (Enhance) Technology combination Leverage on all areas of tech expertise Make solutions customizable (on/off – toggle) – so that the product retains its relevance in multiple scenarios rather than just one

Threats Competitors in 3D Sound Arkamys IOSONO Competitors in Surround Sound Dolby DTS

Competitor Presence

Arkamys	IOSONO	Dolby	DTS
Automotive Mobile devices Home entertainment Professional sound	Cinema Theme parks Research institutes Sound producers Clubs Museums Planetaria	Multi-industry	Multi-industry

Proposed Business Strategy

Why Expand to Asia?

• Growing electronics and technology center
  • Asia Pacific is home to technology industry leaders such as Samsung, LG, Panasonic, Sony, Phillips, etc.
  • Communications is the fastest growing consumer spending category in Asia Pacific over the 2007-2012 period, with a real period growth of 52.4%.
  • It has some of the largest mobile phone markets in the world, and a large, youthful and tech-savvy population, among whom social media has gained popularity.

• High consumption of consumer electronics
  • Asia/Pacific exhibited the highest smartphone sales growth rate of 74.1%
  • Phablets (Phone-Tablets) are especially popular in the Asia-Pacific. Last year the region accounted for 42% of global shipments

• Exports of electronics out of Asia
  • Globally, Mobile Connected Devices continue to drive industry growth
    • Tablet computing will continue double-digit growth in 2013.
      • Unit sales of tablets are projected to reach 116 million this year, up 45 percent from 2012, when 80 million tablets were sold to dealers.
      • Industry revenues for tablets are expected to surpass $37 billion this year, up from $31 billion in 2012.
    • Smartphones continue to be the primary revenue driver for the industry with growth projected to continue in 2013.
      • Unit sales of smartphones are projected to reach 130 million this year, up from 111 million in 2012.
      • Smartphone shipment revenues are expected to surpass $37 billion in 2013, up from $33 billion in 2012
    • Device makers shipped 25.2 million phablets in Asia/Pacific excluding Japan (APEJ) in the second quarter of 2013, compared with 12.6 million tablets, and 12.7 million laptops.
      • Phablets made a significant jump, up by 100 percent from the previous quarter, and up 620 percent compared to the same quarter in 2012.
    • Laptop/notebook computer sales will continue to rise as 26 million units are projected to be sold in 2013 accounting for $17 billion in revenue.
    • More than 226 million mobile phones were sold to end users in Asia/Pacific in the first quarter of 2013, which helped the region increase its share of global mobile phones to 53.1 per cent year-on-year
    • In addition, China saw its mobile phone sales increase 7.5% in the first quarter of 2013, and its sales represented 25.7 per cent of global mobile phone sales, up nearly 2 percentage points year-on-year.

Business Strategy

• Product Sophistication
  • Technology combination
  • Experiencing music and other audio content in a new way is becoming increasingly important for consumers, Growth is not only being registered in the "at home" segment, but also among portable products for mobile phones, as well as the ‘connected audio’ segment, which relates to connecting stereo systems with home networks and individual portable speakers in a multiroom system.
  • This is the perfect opportunity for A=Volute to establish themselves as the new standard in sound.

• Expand
  • Focus on consumer electronics: Smartphones, tablets, laptops

Why go into Korea?

• Electronics giant: access to home brands
• Export potential
  • Growing popularity of local brand products by international audience
  • Highly identifiable in the mass consumer market
    • Helps raise visibility
• Experience in international/foreign collaborations
  • IOSONO, a company from Germany, has worked with various electronics companies in Korea
  • This shows that Korean companies are open to working with foreign companies

Proposed Market Strategy

Opportunities

• Consumer electronics: smart phones, tablet and laptop
• Receptiveness of technology
  • Korean companies are receptive to working with outsiders, as evidenced by their collaborations with other foreign companies such as IOSONO
• Enhancement positioning
  • A-Volute should position themselves as an enhancement solution, the new standard in sound quality

Strategic Targets

• Target: consumer electronics companies - in particiular - LG
• Products:
  • Key Revenue Drivers: Smart phones, tablets, laptops
  • Complimentary products / accessories (e.g. headsets)

Rollout Plans

• Evaluate feasibility of integration of technological expertise
• Prototype conceptualization
  • Implement certain features such as technology combination
  • Produce versatile solutions for different scenarios
    • Eg. Being able to toggle 3D sound in one scenario and directional sound in perhaps an office environment
• Pitching to potential clients

Learnings and Key Takeaways

- Being in an environment with competitors that have captured a broader market (e.g. they do not just feature in consumer products) and have international presence. Here the need to differentiate yourself either with a strong portfolio or niche area is a must – also, building the confidence your client base have in you can also come from having products that have continuously performed well in the market(s). In this instance, capturing of a strong positioning in the market was also made possible through collaboration with a partner that has sizeable market share and a good following of end-consumers
- Expanding of product range through partnerships and collaborations (being careful about partner selection, consideration of a long term working relationship, awareness of partner/client’s own presence and potential
- Selective expansion and reasons for it (country and or segment specific rather than purely based on opportunities or white spaces available)

References

• Please refer to links in above sections