Karl:
You said: Gary, you confirmed my point that Avid has established a pricing structure that at face value is losing money. The $275/year price you detailed is over $100 less than the current perpetual renewal and close to half what that perpetual renewal will be in one week. Avid is coercing people to subscription with significantly lower prices. In my original post I asked "why?". Considered alone that's contrary to basic capitalism. Something is motivating this aggressive loss-leader migration that isn't being discussed. That "something" obviously has greater value than what they are losing with each subscription renewal versus what they would gain from each perpetual renewal. I'm curious what that is. Cheers, Karl Knowles
Well…… What you are saying is not true at all. A majority of Media Composer users are now on subscription including many major enterprise customers. You can look at our earnings call for data proof points. We've been offering customers choice of licensing options for many years now, but most have moved to subscriptions. There is hidden data here. Customers and Avid benefit from subscription offerings but don't look at Avid for information here, look at Adobe and dozens of other companies for data. Some companies that offer only perpetual have different business models, where software is a compliment to other means of revenue such as hardware and other things.
Marianna
Marianna Montague
Sr. Director, Customer Success Management
Customer Experience & Customer Success
Avid - Remote
marianna.montague@avid.com
t +1 (978) 640-5215 | m +1 (813) 493-6800
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