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

And for the record, Avid does not view Apple as a rival. We sell a lot of
software on their platform, and we think there's a lot of money to be made
integrating their products into our ecosystem. Hence the qualification of
FCP on our shared storage, ongoing efforts to support FCP in Interplay, and
our support for QuickTime (and ProRes) in Media Composer.

Of course in my part of that ecosystem I want every editor to prefer Media
Composer. And I'm sure Steve Bayes feels similarly... Competition is good.

On Wed, Apr 21, 2010 at 8:54 PM, switthaus <switthaus@mac.com> wrote:

> that should have read "impress new users MORE"...
>
> --- In Avid-L2@yahoogroups.com, "switthaus" <switthaus@...> wrote:
> >
> > I don't think Apple sees Avid as a "rival". I doubt much worrying is
> done in the halls of Apple Inc. over whether Avid is profitable or not.
> Actually, Avid needs to hope that Apple does not see them as a rival,
> because with all that iCash, Avid would be in a bad spot.
> >
> > Avid needs to impress new users, not it's current user base.
> >
> > Terry, where is the "server company" clock at these days?
> >
> > sw
> >
> >
> > --- In Avid-L2@yahoogroups.com, RT <huipro@> wrote:
> > >
> > > Steve, It's not really that bleak. Avid is no longer bleeding money,
> > > due to the restructuring they phased in over the last year or more.
> > >
> > > Channels were combined, heads rolled, products nixed and improved,
> > > production and distribution costs lowered and services ramped up. They
> > > did burn cash in the process, in what was a truly sukky year.
> > >
> > > Meanwhile Apple gained momentum and cash while introducing new consumer
> > > revenue streams. That's stunning in this economic climate and just
> > > illustrates the different trajectories these two rivals have.
> > >
> > > Meanwhile Avid focused on the bottom line, sharpened its tools and
> > > impressed its customer base. Apple did not. (Once again, there was no
> > > discussion of PRO APPS on the earnings call. They did mention that they
> > > would keep Apple TV going as a 'Hobby" though). As some have put it,
> > > this may have been a "gift".
> > >
> > > There are many reasons to be optimistic that Avid will be returning to
> > > overall profitability soon. As you suggest, they will need to execute
> > > and grow sales in every division. I know for a fact that they intend
> to
> > > try.
> > >
> > > We'll know more tomorrow.
> > >
> > > RT
> > >
> > >
> > > Steve Mullen wrote:
> > >
> > > >
> > > >
> > > > "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@ <mailto:dvcinlv%40me.com <dvcinlv%2540me.com>>
> > > >
> > > > [Non-text portions of this message have been removed]
> > > >
> > > >
> > >
> > >
> > >
> > > [Non-text portions of this message have been removed]
> > >
> >
>
>
>
>
> ------------------------------------
>
> Please donate to the Red Cross to help those in earthquake ravaged Chile:
> http://tinyurl.com/y8pgceq
>
> Search the offical complete Avid-L archives at:
> http://archives.bengrosser.com/avid/
>
> Yahoo! Groups Links
>
>
>
>

--
Frank Capria
(508) 709 9212
www.capria.tv

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

------------------------------------

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Search the offical complete Avid-L archives at: http://archives.bengrosser.com/avid/

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