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Avid Ship Slowly Sinking?
just read this…..I had no idea that Avid was in such bad shape, has anyone else heard anything? I just switched back to avid from FCP now I read this…
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5 Replies
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Very long thread which includes more reports and analysis.
https://forums.creativecow.net/thread/335/38711#38711 -
To be fair – I think they are still strong but they have to keep adapting.
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[Ian Liuzzi-Fedun] “I think they are still strong”
Nearly 6 years of loses show otherwise. Their quarter over quarter loses (Q1 2011 compared to Q1 2012) tripled.
[Ian Liuzzi-Fedun] “but they have to keep adapting.”
6 years and they haven’t yet. They keep laying off people. Another 20% gone.
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To be fair they have adapted. Never before have they allowed other hardware in on the scale they are now. That is a big step. Now the price has to come down. Next their shared storage methodology or systems they sell need to be more open and/or affordable.
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Umm, yes, change everything, 😉
I think the issue is that Unity/Isis may be Avid’s greatest value. I don’t doubt competition may increase of “cost effective” solutions (even if they aren’t as feature rich). The down economy has a big impact on facility purchasing decisions.
Avid’s financial strong points is that they basically have no debt and currently have about $50 million on hand. This is allowing them to sustain. I think a new business model may involved more than pricing though. Lower pricing by itself may not be the best solution for them.
For example, MC and Symphony are certainly solid NLEs in part of the industry. Competing with Adobe for Apple (if/when they get their game back) may not be fruitful for them. Finding ways to incentivize the move to build out facilities with their hardware might help.
Maybe their hints and “cloud” based workflow will make a “virtual” facility model happen at some point. It’ll be interesting to see where Interplay Sphere goes.
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