Re: [Avid-L2] Re: Making great products to serve professionals is our lifeblood

I mean beyond the core cost - development cost the same (broadly speaking)
regardless of the sales channels. But this way they don't have to press
discs, print boxes or manuals.

There's no sales overhead.

Also obviously their servers are not actually free, but they effectively are
- that distribution model is entirely paid for already. Putting FCP X on it
is zero additional cost (or close enough to zero).

The percentage of profit on a sale of FCP X would be much higher than a
boxed-software sale (especially through a reseller) of FCS. And the volume
of sales with a simpler application that has a much easier (and more
impulse-friendly) sales channel is also a lot higher.

Two ways to make more money from software - high cost, or high volume.
They're totally driving toward the high volume end of that. Avid can only go
so far in that direction - even if Media Composer was $100 there are a much
smaller number of potential users for an application as complicated and
specific as Media Composer.

Media Composer will never have the wide appeal that FCP X can - it's complex
by design because that's what the core audience needs. However Avid does
also address that market somewhat with products like Avid Studio.

Dylan Reeve
http://dylanreeve.com/

On Fri, Jul 8, 2011 at 3:39 PM, Steve Hullfish <steve4lists@veralith.com>wrote:

> **
>
>
> So the software wrote itself?
>
>
> Steve Hullfish
> contributor: www.provideocoalition.com
>
> On Jul 7, 2011, at 9:21 PM, Dylan Reeve wrote:
>
> > Also selling direct through App store is basically 100% profit for Apple.
> > They have zero manufacturing or distribution cost, and no wholesale
> margin
> > to consider.
>
>
>

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

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