Final Cut Pro X is as important to Apple as Media Compoer is to Avid!

The present and future of post production business and technology by Philip Hodgetts

Many people “worry” that Apple will abandon their professional applications (Final Cut Pro X, Aperture and Logic Pro X) because they don’t make much money for the company. Ironically, the same argument can be made about Media Composer: it is not core to the company’s primary business . In reality it’s more likely that Avid would abandon (or sell) Media Composer than Apple is to get out of the professional creative tools market.

The obvious question is how can I be so sure that Apple won’t abandon the content creation markets? It’s simply part of the company’s DNA. Apple consider themselves at the intersection of liberal arts and science – something that Steve Jobs repeated regularly and that has been confirmed by Tim Cook.

So, in essence, it really doesn’t matter to Apple whether or not the professional content creation apps are profit centers (although I’m pretty convinced they are), they will always be part of Apple – at least until their DNA changes!

Unfortunately I can’t say the same about Media Composer and Avid. In the most recent financial statements the contribution to consolidated net revenue from “professional video editing products” (these days Media Composer) is down to 11%, dropping about 1% per year. That was also while Media Composer was still $2500. With the new lower price, the contribution to consolidated net revenue will likely be much lower. Based on a simple interpretation of (admittedly) nearly three year old information Media Composer’s revenue will drop to about $26 million a year from around $67 million in 2011. (2011 is the latest 10K filing.) read more...