[Avid-L2] Re: OT: SHOW ME THE MONEY!

"Meanwhile, Avid drained around 27% of their cash reserves in 2009."

Where will the huge increase in sales come from? It's going to take
millions of sales simply to stop losing money. Millions more to make a
profit.

Despite the wonder of V5, unless a whole bunch of new folks buy their
first Avid, at $2500, it's only the installed base upgrading their
units at a far lower price each.

And, getting V5 out leaves a very costly and very difficult effort
ahead -- recoding the entire product-line in Objective-C so Grand
Central and OpenCL can be supported. This could take several years --
and that only lets Avid keep-up with 10.6 from last year. By then only
a year of cash will be left. (Can this even be done? I wonder if Avid
has even upgraded their original codebase to the Apple's Carbon
because like Adobe they are also releasing for PCs.)

For me the question is how to use the time between V5 release and FCP7
release to sell MC to thousands upon thousands of totally new users.
The obvious way is to drop the price to $500, but now 5 times more
units must be sold. And, doing this is not enough. Many times this
number must be sold to eliminate losses.

You can draw your own curves and it's very hard to see how the losses
don't continue until there is no money is left.

Best Regards,
Steve
dvcinlv@me.com

[Non-text portions of this message have been removed]

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