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Shane Ross wants to know what’s up with all the static at Avid lately…Current CEO David Krall is stepping down, and there is a restructuring and subsequent layoff of 129 employees in the works.
“WHAT IS HAPPENING THERE? Are they FINALLY getting that their expensive price model cannot work in the current market? I mean, $5000 for a software version of Media Composer…ONLY the NLE itself. And if you want a Mojo, that is more. This is tough when you have Apple and Adobe offering full suites of software for 1/3 the price, including high end graphics and audio and DVD authoring tools.”
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I mean…coming from a history of working with Avid (10 years), $5000 is a FANTASTIC price. VERY cheap. When you consider that a full system all but 5 years ago cost between $65k and $120k…that is DARN cheap.
The issue is that now they have competition. SERIOUS competition. Not consumer software, but pro software from TWO vendors that offer a full suite of applications for under $1700. Faced with that they have to do something. They can’t survive if they try to rely on their old client base who has the deep pockets and would see that as a deal. Because MANY of their clients are now looking at FCP and going “Hey, look at that! I can get a fully loaded HD ready system for about $20,000…or less! Start editing stuff on my laptop for $1200.” They look at Avid and see their Laptop offering and see the $5k price tag…and are lacking motion graphics abilities, sound mixing, DVD authoring…and now WORLD CLASS color correction.
Ah…but I should have blogged this. I might add it to my post.
Their products and pricing have a feeling of yesteryear about them. I was a Xpress Pro user for many years from when it was way ahead of the competition and stable. I tired of having a whole string of updates that actually made the software more buggy and in some cases unusable. I switched to FCS and haven’t looked back.
I expect Avid to continue down the road with ludicrous pricing strategy to the point where their pro NLE market share is completely overrun buy leaner fitter more ambitious companies. This will leave Avid nowhere to run but into video servers and content management where Apple have already stuck their nose in with FCP Server. You can bet Adobe will be working on something similar too so it’s game on for survival for Avid in the medium to long term.