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Avid’s accounting needs some editing
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[Craig Seeman] “Yes. I’ve read a couple of analysts mention that they felt that Avid’s price cut offer wasn’t a great idea because the lower price further ate into revenue with no obvious gain. It’s not selling hardware.”
I saw it as an attempted loss leader. I think the hope was that people would buy MC on sale, decide they liked it then expand into Avid hardware. I think the ‘stickiness’ of FCP Legend has surprised many people. I still see new productions starting up with FCP of old. Crazy.
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[Andrew Kimery] “I saw it as an attempted loss leader.”
I think that was the goal. Apparently it’s not working to the extent they hoped for. I’m not sure that a facility with FCP that decided to move to MC due to this pricing, is going to jump in with Isis as well. I’m sure lots of individuals jumped to MC at the low price and aren’t even within the Isis target market. I sometimes wonder if they reversed the hook, FCP facility buys Isis and gets a whole bunch of MCs for free (or low cost) might have hit their target a bit better.
I’m kinda thinking EditShare is opening up Lightworks because they have some business plan in mind.
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What about a coalition of Directors and Editors, “Hollywood” types club together to prevent the tools they rely on from disappearing?
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[Andrew Kimery] “I saw it as an attempted loss leader. “
That’s how I saw it as well–a one time opportunity to regain lost market share.
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[Marcus Samuel-Gaskin] “What about a coalition of Directors and Editors, “Hollywood” types club together to prevent the tools they rely on from disappearing?”
I’m absolutely sure they’d know how to run a video technology business.
On the other hand there’s some Executive Producers. Some might even be good at showing no profit no matter how much they made… after they convinced the employees that a profit sharing plan was the way to go. -
[Chris Harlan] “a one time opportunity”
They’ve introduced the crossgrade again.
[Chris Harlan] “regain lost market share.”
Market share doesn’t necessarily equal profits.
That’s why I mentioned upgrades… to be clear… to future versions. Apparently that’s not working at least to an extent to make Avid profitable.
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[Craig Seeman] “Chris Harlan] “a one time opportunity”
They’ve introduced the crossgrade again.
“I know. Who doesn’t. I was just talking about their thinking at the time. They have quite apparently changed their minds several times and in ways that don’t scream stability.
[Craig Seeman] “[Chris Harlan] “regain lost market share.”
Market share doesn’t necessarily equal profits.
“I’m not arguing that it necessarily does. But it also was/is a possible path to profits. Right?
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[Chris Harlan] “But it also was/is a possible path to profits. Right?”
It seems like a long shot to me.
I don’t think it’s related to hardware sales in a significant way. I suspect they may have the same software upgrade problem Adobe might have had but I’m not sure the same solution would work for Avid.[Chris Harlan] “They have quite apparently changed their minds several times and in ways that don’t scream stability.”
I agree. It indicates to me they have no clear business plan about this. Of course if they have info that showed the crossgrade actually did result in a profit it might make sense to re-introduce it but I just don’t think that’s the case. If it were they might point that up in the report that they just delayed indefinitely.
They may be in a damned if you do damned if you don’t regarding reporting. Say nothing the stock drops. Report the ugly reality and the stock drops. On the other hand, take time to reassess and see if you can point a credible way forward when you finely do deliver bad news and it could have some positive spin with their new CEO. While I can certainly be speculative, on the surface of it, it doesn’t seem good at the moment.
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[Craig Seeman] “[Chris Harlan] “But it also was/is a possible path to profits. Right?”
It seems like a long shot to me.
I don’t think it’s related to hardware sales in a significant way. I suspect they may have the same software upgrade problem Adobe might have had but I’m not sure the same solution would work for Avid.
“I agree. I think Avid’s got a hard ride.
[Craig Seeman] “[Chris Harlan] “They have quite apparently changed their minds several times and in ways that don’t scream stability.”
I agree. It indicates to me they have no clear business plan about this. Of course if they have info that showed the crossgrade actually did result in a profit it might make sense to re-introduce it but I just don’t think that’s the case. If it were they might point that up in the report that they just delayed indefinitely.
They may be in a damned if you do damned if you don’t regarding reporting. Say nothing the stock drops. Report the ugly reality and the stock drops. On the other hand, take time to reassess and see if you can point a credible way forward when you finely do deliver bad news and it could have some positive spin with their new CEO. While I can certainly be speculative, on the surface of it, it doesn’t seem good at the moment.
“Again, yeah. I really enjoy using MC, and its shelf life in my part of the world should be good for a long time, but I’m not putting all my eggs in one basket anymore.
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