What's going on with the audio market?

I am 67. I purchased my 1st system in 1968 ( Dual 1019,JBL SA 600, JBL Lancer 99's)
and still have it. Have bought several other systems in last 10 years using Legacy,
Merlin and Klipsch speakers. I listened to the music when I was young with friends.
It was a shared passion of my generation. Now I often sit alone with a SME turntable,
tube phono amp feeding a tube preamp into a 450 watt per channel amp into
6' high speakers each with three 15"woofers plus a massive sub. My step daughter
told me politely she did not wish to hear it because she might not be satisfied afterwards
with her MP3 device and ear buds. My wife primarily listens after a live concert so
she can hear what the artist should have sounded like. Music is now basically
free and sound quality not very important . It's background music when doing
something else .  I can afford this stuff now but much of the meaning is gone.
Note that many of the albums advertised were recorded decades ago.  I don't
see big footprint , high dollar, physical media music purchased by the new
generation in large quanities.

Ok fellas, I think you guys all make valid points in the audio direction as far as gear and sales.  I'm a young 43 I been in the hobby for the last 8 years. I went to the top of the heap pretty fast I went from gear to gear.  I heard Dave baskin's half million dollar system. Raidho and solutions.  Blew me away.  I've heard top of the line cabling and other gear.   There is great stuff being made.  But I'm done. I'm keeping my kr audio va 900 integrated. My gato fm6 my Parasound cd1 and resonessence mirus dac. I use high fidelity, mavros and clarity cables.  I'm happy. I change my music not my gear anymore.  It's about the music.  Not Obama, free speech etc.  No rants just happy smiles when you hear the notes being played. Don't talk just listen. Enjoy all! 

People don't have as much discretionary income or time.....healthcare; taxes; food; rent; etc. takes up a large part of most peoples income. Add to it that young people have not adopted the hobby or enjoyment of listening to "actual" music for quite a long time. The passion for music has been lost in a formulaic business model that pushes the most mundane BS as music at MP3 quality and most people dont even know the history of music. Does anyone need a great system to listen to the garbage created by the likes of defjam or skidrow? No!...just a car with juiced up subs and a penchant for expletive laced egocentric nursery rhymes for criminals! What do you hear if you leave your windows open? There are still alot of good bands making great music for the sake of the music and I love them for it....but their audiences are nothing like the audiences of 70s rockers who created the whole reason many of us cared to go to shows, buy the records and then buy the systems to listen to them as they intended. Classical will always be a small piece of the pie despite the passion those listeners have to put money and time into their systems. Its going to be very hard for audio engineers to continue to fund their research into better sound...the well is running dry and its a shame that the wealth of music we have is ignored by so many who listen to "noise" without heart and soul and think its cool. Meanwhile, noise is on the rise and ask yourselves this: When was the last day you didnt hear a machine?

First the target market is slowly diminishing.  Gen. X and Y and Millenials are using iPhones for their primary music source and show no signs of changing.  Only the Boomers care about this stuff anymore.

Second, the value proposition that many audio company's offered 20-30 years ago has been abandoned.  I am pretty certain, having listened to them side-by-side, that today's turntables, cartridges and tonearms are really not any better than the 1980's versions...in fact in many ways they are inferior.  When you can go on Audiogon and buy a dead man's set-up for 10% of the cost of a new rig, and it sounds as good or better, why see an audio retailer at all ?  

Third, the price of SOTA equipment in 2016 is astronomical......$100K for a pair of loudspeakers is ridiculous.  Just because one can build a speaker cabinet entirely out of CNC high-speed machined aluminum billet doesn't mean that they should, or that they will get better results than Paul Klipsch or Roy Allison or Roger Vandersteen did 30 years ago.

Finally, the audio business is not really offering any technology improvements to materially improve the home music experience to speak of.  It has NOT embraced multichannel when it has shown to be clearly more realistic then 2-channel audio, and every improvement to digital playback since the original CD player in 1982 has been met with lukewarm sales at best.  SACD and DVD-A SHOULD have taken off, but when audiophiles sat on they pocketbooks, the die was cast and the BIG players said "those old SOB's don't care so why should we ?"  

I remain skeptical of digital downloads....the numbers aren't even close to CD sales TODAY, much less at their peak, and the selection is more "austere" than SACD's. Digital streaming (TIDAL, etc.) may have a chance, but...who knows.  Let's see what happens with MQA.....can anyone remember the last great digital "sonic breakthrough ?"  (Hint, it was called "Pono ?"  As is Phono.)  Not even Neil Young could sell needle-dragging, vinyl-loving Boomers on that one.

I stopped watching the news and politics and the world kept on turning!
I am 59 and started serious buying after my wife passed away in 2012.
Nothing calms and puts things in perspective like a quite room with a good system and great music to listen too.
We have the ability to change very little in life, outside of our community, many will argue that but I have been so calm since I learned to let the train wreck continue on without me.
I guess you could say I went over the top and off the cliff buying audio gear, it was the  perfect storm , depression, insurance money and a rediscovery of great music and systems again.
One day I was looking at ebay, I have never payed much attention to the computers, and I discovered vintage audio gear:):):)!
6 Macintosh amps, numerous tube amps and 22 sets of speakers later, I am calm.
I am raising two grand kids, since birth 14 and 15 now, they know what heavy amps mean ,what  large effecent altec  and klipsch speakers are  and why size matters ,differences between tube amps and ss.
They are home schooled by me , we are learning electronics as one of our studies, if your going to have it you need to be able to fix it.
They like what we like, they will continue on and all I did was expose them to it and take cable tv away throw the video games out and set them up with their own systems.
They also had to have a few months of disbelief and come to terms with no one was coming to save them and their spoiled life  they had been living.
Did I mention the installation of two wood stoves and now we heat with wood, another shock but now they look forward to cold weather, yes we cut and split our own wood:).
I have a bedroom I turned into a stereo storage room, more like a store, we all change our systems about at will, we go shopping in the store.
All this was made possible for about what some people pay for a good bass boat, or a fraction of what that latest greatest new car cost.
I hope this does not come across wrong,I am just so happy to be able too show my kids there is so much more to life and it's all about choices we make along the way.
I think audio today is suffering because the youth today does not care about great music , any old music will do on the phone or computer.
I have down loaded  music  off line , when I burn them to cd and put them in a great system the play back is less than stellar.
I have used other computers and have cd's people have made for me, I just think the quality of mixing and recording has suffered because it's just not that important anymore, they will buy anything!