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Apple putting major squeeze on Avid

Apple Store“At video-editing pioneer Avid, the story has gotten gloomier since the arrival two years ago of activist investor Blum Capital Partners, which has increased its stake in the company from 6.4% in April of 2006 to 22% currently, making it the single biggest holder of the stock,” Barron’s reports. “Avid shares have lost half their value in that time…”

“It’s difficult to see what turnaround can be engineered at the 21-year-old company,” Barron’s reports. “Avid’s grip on the video-editing and post-production technology field has been loosened dramatically by Apple, which swooped in with low-priced offerings that have increasingly gained adoption among independent film makers and editors.”

MacDailyNews Take: Apple’s products have also increasingly gained adoption among major, mainstream film makers and editors, than you very much.

Barron’s continues, “‘It’s as if a good friend is expiring,’ says Jon Alpert, an Emmy award-winning documentary film maker, who used Avid computers to produce shows for HBO such as 2006’s Baghdad ER… Describing himself as an early adopter of Avid, Jon Alpert has since switched to using Apple’s Final Cut Pro. Systems that would cost $80,000 to put together from Avid can be had for a few thousand dollars with Apple’s Macs and its ever-expanding array of products.”

“‘It is really, increasingly, financial suicide to consider using Avid,’ when the same work can be done with Apple gear, he says,” Barron’s reports. “Alpert’s color-correction expert, who ‘swore he’d never switch to Apple,’ this year made the transition to Apple’s program, dubbed ‘Color,‘ with relative ease and is now ‘quite happy.’ Worse, film and TV’s next generation is growing up on Apple’s cheaper platform.”

Barron’s reports, “Avid still has fans, but the devotion gap, if you will, has narrowed substantially with Apple. A recent survey conducted by Piper’s Olson of 112 post-production video specialists found 45% using Avid machines and 41% using Apple, with the latter having jumped from 32% just a year ago.”

Full article here.

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