Avid 2nd Quarter Results

Posted July 27, 2007 by Steve
Categories: Avid

Avid released their 2nd quarter financial results yesterday. Revenue was flat relative to last year and the company lost about $6 million for the quarter, including various charges. This compares to Q1 when they eked out a tiny net profit of just $20 thousand. You can listen to the analyst conference call here. (In Safari, the player told me that I didn’t have the correct plug-in, but with Flip4Mac installed, it played the audio anyway.)

The company also announced the appointment of Joel Legon as CFO. He was formerly the corporate controller.

In the call, outgoing CEO David Krall said they were focusing on “storage, asset management and services,” and added that, “we believe winning the hearts and minds of aspiring professionals is a key to long term growth in the professional video segment,” and he mentioned new marketing programs aimed at independents and education.

The company also announced “a reduction in force of approximately 150 positions, primarily, but not exclusively, in the company’s Video business unit.” Broadcasting and Cable magazine reported that 129 people have already been laid off. In the conference call, Krall said the layoffs were mostly in their Mountain View storage engineering division, which is being moved to Tewskbury and Canada.

Interim CEO Nancy Hawthorne indicated that they need to improve both operationally, and in terms of infrastructure, and to that end, have engaged consulting firm Bain & Company.

Avid’s post production business declined 7% relative to last year and increased 7% relative to last quarter. More than half of the Adrenaline systems sold this year were HD-capable.

In the midst of an across-the-board 2-3% drop in the stock prices yesterday, Avid fell only about 1%. This morning it’s down a little more. (Chart)

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DNXHD-36 Without Adrenaline

Posted July 26, 2007 by Steve
Categories: Avid Technical Tips, Avid vs. Final Cut, Avid Wish List & Bugs, Laptop Editing, Workflow

I got a demo yesterday of a software-only Media Composer playing DNXHD-36 media. We hooked up an 8-core Mac Pro to a big Pioneer plasma TV that served as our second monitor. In a word, it was fantastic. Seeing material with that kind of clarity at that size in an offline editing room, and being able to play it and work with it quickly, jogging back and forth and dragging through a clip, was downright breathtaking. And it was not just an aesthetic experience, although it was that, for sure. You’re getting more information — for example, you can clearly see facial expressions in wide shots.

Major caveat — all I did was look at a couple of clips a few minutes long. I didn’t try to play huge complex sequences, I didn’t run a big project, I didn’t even have much audio. All I did was use JKL to move around in the video, made a few cuts, tried making a Quicktime and a cut list. In that limited environment, the system was quite responsive.

Special thanks go to Jeremy Dela Rosa at Global Entertainment Partners (GEP) for putting the demo together for me.

The big revelation was that we could do this with a software-only Avid. You don’t need Adrenaline to do HD, and you don’t need huge amounts of storage. DNX-36 uses about 16 GB per hour at 24 fps — just a bit more than DV, and about triple what you’d need for good ol’ 14:1.

So can you really use a software-only system instead of Adrenaline? That depends on what you are trying to do. The first problem is monitoring. We ran the system with two monitors, one of which was the HD TV (the TV has to have a DVI input). That might be a viable way to work — if you had a 30″ monitor for cutting, you could put everything there, bins, composer and timeline. But if you want three monitors, you’re moving to the bleeding edge. You’d install a second graphics card in your Mac, and run your bin monitor from that. We didn’t have that second card, so we weren’t able to try it. Avid doesn’t officially sanction it, but it ought to work.

The second problem is input and output. The software system has only one way of doing this — Firewire. And that severely limits your choices: DV or DVCPRO HD. If you’re working at DNX36 that doesn’t help much.

So a realistic environment for a small show might mean an Adrenaline-based system for the assistant and a software-only system for the editor.

We tried a few other things:

Making an SD Quicktime — something you might have to do for turnover to sound. On the 8-core Mac, creating a 640×480 QT at Motion JPEG-A was very quick — a bit faster than real time.

Playing SD material in the HD project. The only way to do this is to create a separate SD project, load your video there and then drag the bin into the HD project. In the time we had, all we could do was create some color bars at DV resolution. I was not only able to play that in the HD project, I could intercut it with HD. Unfortunately, the MC insisted on treating the SD clip as though it were 16×9, so it looked anamorphically stretched. But adding a reformat effect solved that problem, and the effect played without rendering.

I also tried making a cut list. And, not surprisingly, I ran into some new bugs. FilmScribe is not nearly as stable as it used to be. Lists out of MC used to handily beat those from FCP. I don’t know if that’s true anymore.

I heard about some other problems, too:

In Adrenaline you can output to SD with a pillar-box in real time. But you can’t do it with deck control. In other words, you can’t use digital cut, you can only crash record. That makes creating an SD tape pretty dicey and not particularly useful.

Worse, I was told about a bug in Adrenaline, that puts a delay into video on the client monitor. The result is that you can be in sync on the client, or on the record monitor, but not on both. The delay is four to six frames — not trivial. I didn’t see this myself, but I sure hope Avid engineering is doing whatever they can to fix it — pronto. The good news from my demo is that the problem only occurs with Adrenaline. Software only was in perfect sync.

All in all, an eye-opening couple of hours, and a lot of food for thought.

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More Scroll Wheel Tips

Posted July 19, 2007 by Steve
Categories: Avid Technical Tips, User Interface

Avids now make much better use of a mouse with a scroll wheel. But many editors don’t know it. I’ve mentioned this before, but thanks to Greg Staten at Avid, I’ve discovered a few additional uses for your favorite computer rodent.

  1. You can use the scroll wheel to move up and down through text view bins, the project window, or the timeline. The scroll wheel is much more sensitive now and works the way you expect. And the sensitivity can be adjusted through the mouse settings panel.
  2. If you hold down the control key and scroll through a bin in text view you will move horizontally through the columns.
  3. If you first select a clip and then hold the control key down and scroll through a bin (in text view), you’ll move vertically through the list of clips, selecting individual items in turn. When you’ve got the item you want, hit return to load it into a monitor. Add the shift key and you can select more than one item. (This also works in frame view, but it’s hard to control.)
  4. If you use a mighty mouse or trackpad, you can scroll horizontally in the timeline. This moves the timeline to the left or right. This is a terrifically useful feature, but it’s marred a bit by the fact that scrolling works backwards relative to other programs (try it to see what I mean).
  5. If you hold down the control key while you’re scrolling horizontally in the timeline, you’ll move the blue bar a frame at a time. Hold both control & alt and you move by ten frames.
  6. In effect mode or color correction mode, you can select a slider or control point and, with the control key held down, change its value by scrolling. Add the option key and you’ll change values by ten instead of one.

All in all, very useful and intuitive.

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Business Models Pt. 2

Posted July 18, 2007 by Steve
Categories: Avid vs. Final Cut, Workflow

Last week I talked about how Avid and Apple look at the editing world through different lenses. Apple sees a broad, diverse market that wants a complete post production studio in a box. Avid sees a mostly pro world that wants bulletproof solutions with good support and is willing to buy many interlocking applications to get it.

Avid has lots of problems right now, not the least of which is it’s relatively low stock price. Many of its recent initiatives haven’t worked out as planned. Adrenaline offered great real-time capabilities when it was introduced four years ago, but it’s been persistently buggy. Xpress Studio was supposed to compete with the Final Cut suite but it was based on Xpress, wasn’t available on Mac and its marketing was lackluster. Avid bought Pinnacle to get into consumer editing but it turned out that the price was too high and the Pinnacle products weren’t all that good. Interplay has had a mixed reaction in the marketplace and only appeals to the biggest customers.

The question now is what the company’s strategy is going to look like going forward. Is Avid going to continue to focus on large customers or are they going to go head-to-head with Apple and Adobe for the hearts and minds of editors?

I’m inclined to believe that at the end of the day, there is only one market. No independent producer wants to use a product that is shunned by professionals. And the top of the market can’t function effectively while every kid in high school and college can make movies with Final Cut in his sleep. I’m cautiously hopeful that we’ll see a renewed development effort at Avid in the coming months. But only time will tell.

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David Krall Steps Down

Posted July 16, 2007 by Steve
Categories: Avid

In a surprising development, Avid’s board of directors announced this morning that CEO David Krall will step down at the end of July. Nancy Hawthorne, former chairman of the board, will serve as interim CEO until a replacement can be found. Current chairman Pamela Lenehan thanked Krall in a carefully worded press release.

Avid plans to announce its second quarter numbers on Thursday. A conference call for investors is scheduled for Thursday at 5 pm Eastern time. Avid’s stock has fallen over 40% since reaching a high in early 2005 (chart).

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HD Lite

Posted July 14, 2007 by Steve
Categories: Avid vs. Final Cut, Laptop Editing, Workflow

“Offline HD,” or whatever we’re going to call the process of editing with compressed HD materials, looks like it might be the biggest thing to hit Hollywood in many years. I doubt that there are many editors (or directors) who wouldn’t prefer to look at HD images, even if the tradeoff is less realtime performance and slower renders.

Right now, you can get into offline HD less expensively with Final Cut than with Media Composer. But there are two ways to do it and the economics are quite different.

Method 1: Hardware
This is the standard approach. It allows you to digitize from HD tape, output to tape in SD or HD and run a full time client monitor (ie. a big HD TV). Unfortunately, it costs a lot more to do this with Media Composer.

  Apple   Avid
  Final Cut Studio $1,300   Media Comp. Adrenaline
w/ DNxcel HD board
$20,000
  HD Card or AJA I/O $3,000    
  Mac Pro $3,000     $3,000
  Two LCD Monitors $2,000     $2,000
  HD TV $2,000     $2,000
  Amp & Speakers $1,000     $1,000
  Total $12,300     $28,000

Method 2: Software only
Here the playing field is a little more level. You won’t have a way to plug in a deck, except via Firewire (DVCPRO) so you have to assume that film dailies will be digitized in telecine. You can run your material full screen but you lose a monitor to do it. (You may be able to hook up a third monitor via a second video card.) And you can’t output to tape, again except via Firewire. Downrezing your work to SD for DVD output has to be done via Quicktime, which is slow.

  Apple   Avid
  Final Cut Studio $1,300   Media Composer software $5,000
  Mac Pro $3,000     $3,000
  Two LCD Monitors 2,000     $2,000
  HD TV $2,000     $2,000
  Amp & Speakers $1,000     $1,000
  Total $9,300     $13,000

And you can also combine these two approaches. On a small feature film or TV show you can give the assistant editor the hardware system so he or she can do the I/O and let the editor work software-only.

What do you all think? Am I missing anything? Does this represent an important competitive advantage for either side?

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