Audio-Video Stocks Face Industry Headwinds as Sonos, GoPro and LiveOne Remain on Watch

The audio-video production industry is moving through a difficult period as companies face weak consumer spending, intense competition, changing entertainment habits and pressure from cheaper digital tools. A recent Zacks industry outlook highlighted three companies investors may want to watch: Sonos, GoPro and LiveOne. The report noted that the industry is dealing with headwinds such as easier online access to recording equipment and wider internet-based distribution channels.

Industry Overview

The audio-video market once depended heavily on specialized hardware, premium devices and controlled distribution networks. Today, that model is changing fast. Consumers can record, edit, stream and share content using smartphones, affordable cameras, cloud software and social platforms. This shift has opened the market to more creators, but it has also made life harder for companies selling dedicated audio and video products.

At the same time, inflation and cautious consumer spending have made buyers more selective. Premium speakers, action cameras and paid entertainment services are often seen as optional purchases. When households cut back, these products can be delayed or skipped entirely.

Key Headwinds Pressuring Audio-Video Companies

Rising Competition

Competition is one of the biggest challenges. GoPro faces pressure from smartphone cameras, DJI, Insta360 and other action-camera makers. Sonos competes with smart speakers, soundbars and home-audio systems from major technology brands. LiveOne operates in a crowded music, podcast and digital-media space where users have many low-cost or free options.

Changing Consumer Behavior

Consumers now expect simple apps, seamless streaming and lower prices. They also want products that work across many platforms. If a company’s software experience is weak or its hardware feels too expensive, customers can quickly move to alternatives.

Lower Barriers to Entry

The availability of affordable recording gear and internet distribution has reduced the advantage once held by established audio-video firms. Independent creators no longer need expensive studios or traditional media channels to reach an audience.

Sonos: Premium Audio Brand Seeking Stability

Sonos remains a well-known name in premium wireless speakers, home theater systems and connected audio. Its brand strength is built on sound quality, design and a connected ecosystem. However, the company still faces pressure from slower demand for consumer electronics and tough competition from larger technology companies.

Sonos has also had to manage customer expectations around software performance and product experience. In the premium audio market, trust matters. Buyers paying higher prices expect easy setup, reliable apps and long-term support. Any weakness in user experience can affect sales momentum.

Still, Sonos has important strengths. Its product ecosystem encourages repeat purchases, and home entertainment remains a long-term trend. If the company can improve execution, protect its brand and refresh demand with new products, it may remain a stock to monitor closely.

GoPro: Action-Camera Pioneer Under Heavy Pressure

GoPro is one of the most recognized names in action cameras, but the company has been facing serious challenges. Recent reports show that GoPro has been cutting costs, reviewing strategic options and dealing with declining revenue. Reuters reported in May 2026 that GoPro was exploring options including a possible sale or merger after receiving strategic interest.

The company’s struggles are tied to several issues. Smartphones have improved dramatically, reducing the need for separate cameras for many casual users. Meanwhile, rivals in action and 360-degree cameras have become more aggressive with features, pricing and creator-focused tools.

GoPro is trying to defend its brand by focusing on professional-grade cameras, subscriptions and new markets. However, investors may want to watch whether the company can return to growth, improve margins and rebuild confidence.

LiveOne: Digital Entertainment Player Focused on Restructuring

LiveOne operates in digital music, entertainment and audio content. The company has been working through restructuring efforts while trying to improve efficiency. LiveOne reported fiscal 2026 first-quarter revenue of $19.2 million and said it had reduced short-term liabilities year over year.

LiveOne’s opportunity comes from the continued demand for streaming entertainment, podcasts, creator content and digital subscriptions. However, the market is highly competitive. Major platforms already control large audiences, making it hard for smaller firms to scale profitably.

For LiveOne, the key questions are whether it can grow revenue, control costs and build a stronger recurring-revenue base. Investors may also watch its ability to use technology, including AI-driven operations, to improve efficiency.

What Investors Should Watch

For Sonos, GoPro and LiveOne, the main issue is execution. Each company has brand recognition or market exposure, but all three face pressure from competition and changing consumer demand. Investors may want to track revenue trends, margins, cash flow, product launches and management guidance.

These stocks may appeal to investors looking for turnaround opportunities, but they also carry risk. The audio-video industry is not disappearing, but it is changing quickly. Companies that adapt to software, subscriptions, creator tools and connected ecosystems may have a better chance of long-term success.

Conclusion

The audio-video industry is facing a tough environment, but it still has areas of opportunity. Sonos offers premium connected audio, GoPro remains a famous action-camera brand, and LiveOne continues to push into digital entertainment. Still, headwinds such as cheaper technology, online distribution, strong rivals and cautious consumers cannot be ignored.

Overall, Sonos, GoPro and LiveOne are stocks to watch rather than easy winners. Their future performance will depend on innovation, cost control, customer loyalty and the ability to adjust to a fast-changing media and electronics market.

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