The history of sound recording has often emphasized technological developments, leaving aside artistic and aesthetic aspects of recorded works, commercial opportunities, the listening practices of consumers of recordings, and listening expectations. This article examines the experience of an innovative company, Soundstream Inc., which in the late 1970s and early 1980s marketed the first professional digital sound recording and editing services. While technologically dominant between 1978 and 1982, and part of a revolution in recording that changed expectations about recordings to include digital editing and enhancement of the original performance, Soundstream failed to succeed financially because of the economic conjuncture in which it was launched, and its inability to develop services that could find a market as the electronics industry moved away from limited, specialized products and towards mass marketing to consumers.