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Now we know why FCPX, Motion and Compressor are so modestly priced

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Mark Dobson
Now we know why FCPX, Motion and Compressor are so modestly priced
on May 30, 2013 at 11:09:16 am

Apple seems to be ahead of the tax game and proud of it. Sure they are not alone, all of the big globals are using sophisticated and entirely legal methods to dramatically cut their Tax commitments.

Adobe also trades out of Ireland as do Marks and Spencer on their European sales. And Google are supreme Jedi masters in tax diddling.

So whilst these tax avoidance schemes are legit, what are the ethics?

http://www.guardian.co.uk/technology/2013/may/29/apple-ireland-cork-cathy-k...


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Tom Bucknall
Re: Now we know why FCPX, Motion and Compressor are so modestly priced
on May 30, 2013 at 12:50:22 pm

I don't agree with what Apple/Google/Amazon/M&S does to avoid paying tax, but I do disagree with the government and public view that they should be forced to pay it back.

This isn't their fault.

They have become billion-dollar companies by finding ways like this that are legal. It is up to the government to close these holes, not up to corporations to be Joe-nice-guy and point out something that would cost them millions in profit. That's not how you become a successful business.


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Michael Sanders
Re: Now we know why FCPX, Motion and Compressor are so modestly priced
on May 30, 2013 at 2:25:49 pm

And lets be honest - Countries have been doing this for ages, lowering tax rates or giving tax breaks to gain business.

The US has it worse with its federal system with states competing against each other.

Apparently there is a map in Amazon's office of states that management are not allowed to visit for fear of triggering arrest/tax payments.

Michael Sanders
London Based DP/Editor


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Craig Seeman
Re: Now we know why FCPX, Motion and Compressor are so modestly priced
on May 30, 2013 at 2:41:14 pm

[Michael Sanders] "The US has it worse with its federal system with states competing against each other."

It's often one of the big factors why some people will open a post production facility in one state vs another.

[Michael Sanders] "Countries have been doing this for ages, lowering tax rates or giving tax breaks to gain business."

I believe you can see examples of that when some film productions are done in Canada instead of the US.



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Joseph Owens
Re: Now we know why FCPX, Motion and Compressor are so modestly priced
on May 30, 2013 at 3:49:10 pm

[Craig Seeman] "I believe you can see examples of that when some film productions are done in Canada instead of the US."

Or Bulgaria, or Spain, or Mexico, or Romania, or Belgium, or pretty much every other country on the planet.

However, where does the post go? Think you already know the answer to that one. Virtually all of the incentives for so-called "runaway" production conform to the Panda model -- the kind that Eats, Shoots & Leaves. There is a small amount of craft services, greens, electricians, painters, carpenters -- not exactly high-tech, and not even dailies anymore. And even when there is a considerable amount of local matching funding, eventually the entire local crew is fired for some kind of "incompetence" or whatever convenient excuse can be had, and the "A" team is parachuted in. You may think I'm making this up...

But check out the documentary "The Corporation".
http://www.thecorporation.com/index.cfm?page_id=312

If the business entity is not operating in the same mindset as a human psychopath, it is not likely to be successful. The difference is that the corporation is an immortal, it cannot be incarcerated or contained and the rules of humanity do not apply to it. The Rule of Law and the Social Contract are beneath the corporate aristocracy. When the POTUS asks who the government of that country is acting on behalf of, it is a very, very good question.

However, the real reason why those aforementioned "ProApps" are so modestly, some would say "reasonably" priced, is that they are obviously intended to sell to a mass market. Not a niche market.

So enthusiasts can bang together their home-movie travelogue including their trips to Macchu Pichu and underwater high-speed photography of surfing the big waves off Maui, while browsing textiles at the grand bazaar in Casablanca -- you know, the places I hang out every weekend. To a psychopath, this makes perfect sense.

jPo

"I always pass on free advice -- its never of any use to me" Oscar Wilde.


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Craig Seeman
Re: Now we know why FCPX, Motion and Compressor are so modestly priced
on May 30, 2013 at 4:15:49 pm

[Joseph Owens] "However, where does the post go?"

Well in the case of Rhythm and Hues after the bankruptcy....

[Joseph Owens] "The difference is that the corporation is an immortal, it cannot be incarcerated or contained and the rules of humanity do not apply to it. "

It seems a few US Supreme Court justices think they're just like people.

[Joseph Owens] "the same mindset as a human psychopath"

OK so maybe the Supreme Court meant to say they're Human Psychopaths. That would make sense.

[Joseph Owens] "However, the real reason why those aforementioned "ProApps" are so modestly, some would say "reasonably" priced, is that they are obviously intended to sell to a mass market."

Well, maybe to sell their computers to the mass market. I'm going to run around to see how many of my Macs are designed, manufactured or assembled in Ireland since it seems that's where much of their business is located and why they're not paying much taxes in the US.

Which brings us to that scene in Network.








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Joseph Owens
Re: Now we know why FCPX, Motion and Compressor are so modestly priced
on May 31, 2013 at 4:33:44 pm

[Craig Seeman] " that scene in Network."

The year I started in television. What a load, and quite a bizarre mix of neo-social solipstic capitalism that obviously did not figure on the 0.1% and their views on a universal utopian construct. But not out of character mental-health wise.

Note: Peter Finch won the first posthumous Oscar for that role, mad as hell. It was quite a shock.

jPo

"I always pass on free advice -- its never of any use to me" Oscar Wilde.


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Craig Seeman
Re: Now we know why FCPX, Motion and Compressor are so modestly priced
on May 30, 2013 at 2:34:50 pm

[Tom Bucknall] "They have become billion-dollar companies by finding ways like this that are legal. It is up to the government to close these holes,"

Keep in mind that many corporations have lobbyists, donate to Political Action Committees which assist candidates, have officers which donate to candidates and PACs as well. That has a big influence in creating these "loopholes." It's also interesting that the US Senate is investigating as noted in the article.

This all gets very complex when corporations are now "multinational" yet the tax codes in nations and, in many cases, states within nations, vary so widely. Some might note that VAT can add significantly to the cost of the gear one gets in Europe. I also don't doubt that national taxes in some countries result in higher gear and software prices than others.

Then through in that some nations and states have "tax incentives" for businesses to locate there as well. Getting right back to us, it can impact whether an Editor or VFX artist is hired in one location over another.

Each business, every step of the way, looking for the lowest tax rates. Each gov't, depending on local laws, influenced by lobbyists.

One of the biggest concerns in the creative/technology fields, is that with Cloud collaboration it becomes easier for businesses to locate to where the lowest costs are. We often focus on labor costs in our concerns but tax rates, as we can see here, are also a big factor.



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Bernard Newnham
Re: Now we know why FCPX, Motion and Compressor are so modestly priced
on May 30, 2013 at 6:54:11 pm

Well, whatever - Starbucks in the UK seems to have discovered that people can vote with their feet where coffee is concerned.

Apple is a similar easy target for those who might think they could act as a corporation in a more human way. Just don't buy a new iPhone - and you certainly don't need to keep worrying about a new Macpro. Just buy a PC. Put OSX on it if you must.

And maybe suggest to Apple that they could do with their billions useful things in the same way as the Gates have.

Bernie


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Andrew Kimery
Re: Now we know why FCPX, Motion and Compressor are so modestly priced
on May 30, 2013 at 7:12:25 pm

Politics of being a corporation aside, Apple can price ProApps so low, in part, because you are required to use their hardware to run them. While the price drop for X was dramatic, it isn't uncharted territory from Apple. Everything from DVD SP to LiveType to Color (formerly a $30k app) was priced well below competing software. Apple's other revenue streams also mean that it doesn't depend on FCP X and Motion profits to keep the lights on.




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