Nancy Hawthorne, Avid’s new interim CEO, spoke to stock analysts at the JP Morgan Small/Mid Cap Conference in Boston a couple of weeks ago and said some interesting and important things. The company “did not integrate the several acquisitions that we did particularly well, and as a result, we have kind of a mishmash of different systems, and the company has not been positioned strategically to operate as a seamless entity in presenting a lineup of products to the marketplace.”
That’s certainly true and it’s great to hear a high-level Avid executive say so. She also talked about the company’s new focus on product quality, again a very positive thing.
She stressed the company’s expertise with big enterprise customers, and, regarding the Pinnacle division, commented, “we do need to understand what role the lower-end technology plays in our lineup. Is it strategically critical to us, or is it not?”
A week later Apple dropped the price of Final Cut Express from $300 to $200, added a mixed HD/SD timeline, and improved compatibility with iMovie.
All of which begs a key question: can Avid make a business at the top of the professional market and avoid direct competition with Apple, or is there really only one, increasingly democratized market that everybody is part of, one way or another? To put it another way, can you envision a future where young people use iMovie and FC Express and then come to Hollywood and switch to Media Composer?
Maybe — but for that to work, Avid would have to be innovating like mad in the professional world, with a product that was clearly and unambiguously superior. If FCP and MC are even roughly competitive, then it seems to me that you have to go after mindshare — which means you gotta get ’em young. Apple hasn’t won this game yet — iMovie ’08 got a decidedly mixed reception when it was introduced, and there’s a huge paradigm shift between iMovie and Final Cut. Avid, coming later to the party, could build something more consistent and scalable.
But either way, whether Avid wants to go after the whole shebang or just the professional market, they’ve gotta get busy with the software, making it sing for the people who use it, namely editors.
My intuition is that there’s only one game in town. Focusing on the pro market can only succeed as a temporary strategy. In the end, you’ve gotta duke it out at all levels. Otherwise the pressure from below will kill you.
Technorati Tags: avid, edit, final cut pro
Recent Comments