Avid getting rid of divisions and employees
From the looks of it, Avid isn’t doing too well, and the latest news doesn’t look to bring much light to their future either. We’re talking cuts, selling entire product lines and more.
Avid recently announced that they will sell their Pinnacle PCTV product line and related assets to Hauppauge Digital. The deal is expected to close before the end of 2008. Pinnacle Systems was acquired by Avid for $462 million in 2005.
Millions of media enthusiasts worldwide use our award-winning line of Pinnacle consumer products to create and share digital content. As we transform Avid’s business, our strategy in this sector is to increase our focus on software applications that not only meet consumer demand – but also complement our broader portfolio of video and audio solutions. PCTV is a compelling standalone hardware product and a better fit for Hauppauge, a recognized leader in the TV-viewing hardware market.
While I’m by no means knowledgeable about Avid’s situtions to say if this is the truth literally, I am experienced enough to say that this is corporate yada-yada for “we’re not doing well and need to get rid of shit and make some money”.
This is, unfortunately for Avid, only the tip of the iceberg. You see, according to Boston.com (via Gearslutz), Avid plans to cut 410 full-time employees, according to the same source this is “15 percent of its workforce”. The article also says Avid’s “dismissing another 90 contract workers, and selling off its Softimage 3-D game animation software business”. Softimage is being sold for $35 million to Autodesk.
While cutting down in the US, Avid has, according to masshightech.com, partnered with Dextrys is establishing a global engineering center in China. We all know the reason for why China: low cost and market.
What about Digidesign? The first one who says “I think they should be sold to Apple” should consider the following:
- Apple has, for as long as I can remember, been totally ignorant when it comes to upgrading their music software. They’re a company that couldn’t give a rats-ass about bugs and their software in general. OK, I admit, I don’t know that for sure, but that’s the way it seems, and that’s the way it has seemed ever since they bought Logic. I don’t want that kind of company to control Digidesign/Pro Tools.
- If history repeats itself, Windows users will be left in the cold like when Apple bought Emagic (which might add, was when I was a PC Logic user myself!).
- A big corporation making all kinds of things is not something I would like to see in control of my DAW of choice. This is opposed to a company that has a clue about the business and is to some extent a great innovator of it.
I haven’t heard anything about Avid selling Digidesign to Apple, or Digidesign being sold at all, but as soon as Avid’s losses comes to the table there’s always a few who suggests “the Apple way” so I thought I should ventilate my opinions on the matter.
Personally I wouldn’t mind if Digidesign continued on it’s own, withouth Avid, if it’s financially possible.
I guess the yadayada comes close to the thuth. As for selling digidesign. I guess not! I’m almost sure! Why? Look at their products: Protools is becoming an integral part of AVID. Actually, this is one of their strong points. Seling digidesign would mean having to pay for the audio development of AVID. AVID sells digi breakouts under it’s own name and protools is supporting AVID. etc etc….
By J~P ~ October 28, 2008 kl 6:59 am
AVID to sell Digi? Not likely, it’s probably the only division (and M-Audio) that’s making them any money, thanks to all of us suckers. It is a great move to get rid of failing consumer toys like Pinnacle and stay focused on the pro stuff. ProTools 8 is a major move forward, now let them put some money into upgrading their old hardware.
By lexx00 ~ October 28, 2008 kl 8:54 am
I think Digidesign is going to do very well with PT8. They will sell a ton of upgrades, and probably a whole lot of Mboxes and other hardware as well. I don’t think Avid wants to get rid of Digidesign, just threw it up there to explain my feelings about the ever ongoing discussion about “Apple buying Digi”.
By stiff ~ October 28, 2008 kl 2:17 pm
Which makes me wonder…: I am a diehard apple user AND a diehard protools user… So way do I hate the idea of apple buying protools
By J~P ~ October 28, 2008 kl 2:39 pm
I’m an Apple user as well, but it’s more a case of choosing the lesser of two evils
I don’t trust that Apple would take care of Digidesigns baby. I don’t think they would care as much. I like the idea of dedicated companies.
By stiff ~ October 28, 2008 kl 2:45 pm
as a former employee, the biggest issues they have is that a lot of the people up top now are not from the music business. they have people from the pharmaceutical industry running sales workshops, people from unrelated industries running marketing, etc. it’s sad.
By baba ~ October 28, 2008 kl 2:47 pm
in future case Avid sell digi to Apple i promise to
go with steinberg or others daw ….
not turn be obliged to buy a mac !
By iole ~ October 28, 2008 kl 2:54 pm
It seems to be the way things go when a company grows from being a small business ran by people with ideas to something beyond that. I think most of us (users) would rather see people from the music business run a company like Digidesign. I know I do. On the other hand, I can understand that a good salesman is a good salesman regardless of company.
By stiff ~ October 28, 2008 kl 2:56 pm
Digi will have probs because of their ignorance of users needs and also because of huge competition among daws.
How long users ask or pray for PDC? At this time it is NOT possible to effectively use any external DSPs like UAD, Duende or Focusrite.¨Similar situation is in RTADS area or VST support…
A LOT OF users will chose other daw than limited PT LE or expensive (but great I know
) HD!
By Liquid Sound PRG ~ October 28, 2008 kl 3:59 pm
On the other hand… (regarding Apple…)
They sure made a lot of video & film editors happy with FCP.
(Which probably has a lot to do with avid’s announcement. I remember when Avid was “the shit” and it was $30-$40k to get in that door. look what you can do on a $1k iMac these days…)
By MC ~ October 28, 2008 kl 4:10 pm
Liquid Sound: I’m fairly certain Digidesign lost a chunk of LE users over Logic and when Leopard was released because they were too slow to come out with Leopard support. However, I’m fairly certain they will win over a whole lot of people with PT8, with or without ADC.
MC: Yes definitely. I think they made many happy with Logic as well, not least since they lowered the price and included a shitload of plug-ins in the package (even before v8). But I’m still un-impressed with their updates, or rather lack of.
By stiff ~ October 28, 2008 kl 4:21 pm
30 to 40.000 dollars? DREAM ON! To start with a serious AVID set-up comparable to FCP on a 8-core with a Blackmagic HD card you need to part with at least 60.000 euro (which is now what? A gazillion dollar?
). I KNOW; there are cheaper options, but what good is a half finished set to me? And yes: I use FCP 6 every day! And I worked on AVID DS systems and on Media100 (remember when THEY where THE SHIT!? and you had to part with say 100.000 dollar for mac 9600 and a vincent board?)
And I don’t understand Liquid Sound PRG’s post? Why doesn’t Duende or liquid mix work? Because I am using both and must be doing something wrong then
By J~P ~ October 28, 2008 kl 4:27 pm
Well gang Digi just laid off over 300 employees. Inside info for now but lets face it no company who sits on the stock exchange can avoid bad times.
What does this mean in the future?
By Steven ~ October 28, 2008 kl 7:37 pm
Sort of checked… Still a rumour. Although nobody will deny it either!
By J~P ~ October 28, 2008 kl 8:44 pm
Wow this is great, a day off spent on the forums.
Well, here’s my 2 cents worth….
Despite Avid and Digidesign being pretty slow on the uptake regarding well, pretty much everything, I use both Avid and Pro Tools now almost exclusively and mostly on XP.
I think Apples are great, I swear by them for my internet and home entertainment needs, but I prefer to work on my PC’s.
I don’t know anything about Avid cutting jobs, but I feel sorry for those who face the prospect of losing one. As far as a potential Apple monopoly goes, fight the power!
Finally, on the whole Pinnacle product thing, well good!
Compared to real Avid product, that stuff sucks. I hate that Liquid thing, it doesn’t even look like an Avid, much less respond like one. I know lots of people use it but Avid DVD Authoring is still a sore point for me.
As far as selling off PCTV product, well doubly good!!
Avid and Digidesign make stuff for creating on, not tv’s or home stereos. Athough we could come up with some cool crap products like “Avid Personal Video Recorder” or “Pro Tools Home Entertainment System’
That’s my uncalled for rant.
By minnie ~ October 28, 2008 kl 10:19 pm
Weird. Just in time for the Pro Tools 8 announcement.
Fantastic breakthrough, ingenious software! No employees in the building!
- c
By Chad ~ October 28, 2008 kl 11:13 pm
LOL
By J~P ~ October 29, 2008 kl 4:01 pm
With limited track counts no bins only one session open 10 year old chipsets Protools needs a lot more than vs8 to catch up. Next year we will see the gigaflop processors from intel, 25,000 times more powerful than the digi chipsets. I think we will wake up one morning and a new platform will have taken over. Digi hasn’t listened to their users in 10 years they are making SUV’s when we want high performance High Mileage Sports Cars. I can think of a lot of uses for my 3 PCI slots and would love to get rid of the crappy protools cards. Maybe we will find Avid and Protools in a yard sale if they continue to have no regard for professional users. I just saw version 8, and while the GUI looks like their competitor and the automation lanes were stolen from competitors it still seems way way way behind the times. Digi its time for a re-code from scratch and quit telling me it will take five years…I have been hearing that for almost 10 years now
By LAFilmound ~ November 12, 2008 kl 3:44 pm
I hear that Avid is renaming DigiDesign to avid what a mistake and then shutting down DigiDesign in California and moving the entire operations to Avid Technology, Inc.in
Tewksbury, MA. There goes the creativity and artistic side of DigiDesign. Farewell Digi. Avid you @#$%^&**
By Iknow ~ January 1, 2009 kl 1:31 pm
[...] I have to question where this company is heading right now. Cuts have been made, rebranding done, and now two major players in the company – and in the audio division in [...]
By ProToolerBlog → Post » Dave Lebolt and Peter Gorges has left Avid ~ June 22, 2009 kl 2:02 pm
[...] I have to question where this company is heading right now. Cuts have been made, rebranding done, and now two major players in the company – and in the audio division in [...]
By ProToolerBlog - Deutsch → Post » Dave Lebolt und Peter Gorges haben Avid verlassen… ~ June 23, 2009 kl 2:10 am