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Franz Bieberkopf
Avid Rentals
on Apr 6, 2014 at 3:53:00 pm

Avid announces subscription licenses … as an option/alternative to perpetual licenses.

http://www.avid.com/US/products/media-composer/features
http://ir.avid.com/releasedetail.cfm?ReleaseID=838268

The Media Composer | Software subscription and floating licensing will be available in Q2 2014.
Pricing for Media Composer | Software starts at $1,299 USD;
Media Composer | Software subscription licensing starts at $50/month;
All models now include software upgrades and support.
To continue receiving upgrades and support after the first year, perpetual licenses must be renewed annually for $299.

Media Composer | Cloud is currently available and pricing starts at $35,000 USD.


Currently Media Composer is still listed as 999.00 ... so I guess this is a price increase in Q2? (unclear).

Franz.


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Craig Seeman
Re: Avid Rentals
on Apr 6, 2014 at 4:24:45 pm
Last Edited By Craig Seeman on Apr 6, 2014 at 4:31:56 pm

[Franz Bieberkopf] "To continue receiving upgrades and support after the first year, perpetual licenses must be renewed annually for $299."

So this would mean even if you buy the software you'd still need to renew for updates. While some might grumble about that, it's still better than Adobe CC because if you decide not to renew you keep what you have.

[Franz Bieberkopf] "Software starts at $1,299 USD;"

Which would seem to be purchase price plus that first year of updates (sort of).

[Franz Bieberkopf] "Software subscription licensing starts at $50/month;"

So it would seem there's either monthly or buy and annual subscription but no annual only subscription. Offhand I don't think there's anything wrong with that.

This could have been a model Adobe considered. I suspect Adobe felt that too few people would subscribe for the following year after a perpetual license purchase. I do think it makes sense for Avid though.

One thing not clear. Once you buy and you're on the $299 subscription getting future upgrades, if you terminate do you keep the upgrades you've reached. My guess would be yes, unlike Adobe.


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Ricardo Marty
Re: Avid Rentals
on Apr 6, 2014 at 5:42:43 pm

adobe might have thought that few would pay annual subscription so they dumped 12 million users in favor 4 million subscribers that might or might not continue and make adobe run hoops to keep them happy. when they could have had the best of both systems and billions in their pockets. how dumb

Ricardo Marty


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Daniel Frome
Re: Avid Rentals
on Apr 6, 2014 at 6:13:37 pm

[Craig Seeman] "One thing not clear. Once you buy and you're on the $299 subscription getting future upgrades, if you terminate do you keep the upgrades you've reached. My guess would be yes, unlike Adobe."


I also believe the answer is Yes. I am trying to get confirmation.


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Bret Williams
Re: Avid Rentals
on Apr 6, 2014 at 6:43:28 pm

I think the perpetual is no different than the standard old school model expecting a new version every year. Except $299 is cheaper than their normal yearly upgrades. The only difference is they're guaranteeing a revenue stream of $299, even if they don't come out with a big update. IOW, you can buy it, but you only get updates for a year.

Anyone planning on subscribing for more than 3 years should just buy it as 3 years looks like the break even point at $1800(rental) vs. $1897(purchase+updates).

At that point you could have owned the software and had all the updates.

People forget Adobe tried this for a year. You could buy CS6, or subscribe with the same deal as CC. My guess was that that was a test to see if they got enough subscribers without forcing them, and they did not. So knowing they had the pro world over a barrel, they forced them to subscribe. They knew how many would subscribe voluntarily, and figured on a percentage that would subscribe by necessity and did the math and found that all subscription was worth it.

This might be Avids "test." I fell for Adobes test and didn't upgrade my CS5 to CS6. Instead I used that "upgrade" to get a CS6 subscription for $20 a month. But I've contacted adobe and that CS5 serial has been upgraded now. So I can't upgrade to CS6 boxed now. And CS5 is just too far behind for anything but PS or IL for my needs. Premiere was pretty useless until 5.5 and arguably 6. It wouldve been nice to own CS6. Avid users might want to scoop up Avid while they can still buy it and not make the same mistake by jumping on the subscription wagon too soon.


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Craig Seeman
Re: Avid Rentals
on Apr 6, 2014 at 10:53:11 pm

Keep in mind that Avid's position and business model is different than Adobe's.

Currently one buys MC and may not upgrade when the time comes.

Now they offer a monthly rental option which, for some, might feel like a low price point of entry or a way to add a few extra seats shot term for a facility already using Avid.

For those who had been previously reluctant to upgrade to the next version due to cost, that cost may have dropped (assuming Avid upgrades annually) because it's now only $299.

None of this is "coercive" like Adobe but if Avid brings in more revenue by adding a monthly rental option and subscription upgrades they're better than before.

Ultimately what Avid now has:
A low point of entry competitive to Adobe.
A subscription for those who only avoided upgrades due to previously steeper pricing.
Flexibility for the Avid facility to "grow seats" for short term use. Maybe that'll have impact on storage needs which is where Avid makes "real" money.
A program you still can use if you drop the subscription for a time. Something Adobe doesn't offer.

I think this is a very good competitive response to Adobe and very good for Avid users and Avid itself.



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Mark Raudonis
Re: Avid Rentals
on Apr 7, 2014 at 12:57:23 am

For me, the take away from this announcement is that AVID is stepping up and taking a leadership role again in our industry. They're articulating a plan to accommodate all players (small, medium, and large), and introducing significantly innovative products.

I'm looking forward to digging into the details tomorrow at their booth.



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Oliver Peters
Re: Avid Rentals
on Apr 7, 2014 at 6:14:39 am

Basicallly 3 pricing models:

Perpetual - MC for $1299, which includes 1 year of tech support and upgrades. Plus add-on options, like Symphony, PhraseFind, ScriptSync, NewsCutter. Then annual renewal of MC for $299, which covers 1 more year of tech support and updates. If you stop, everything contines to work at last updated version. If you lapse a year, then you have to rebuy at full in the future to get current again.

Subscription-only - this is monthly or annual

Floating licenses - in packs of 20 or 50

FWIW - Autodesk also shifted to subscription for Flame, Flame Premium and Smoke. Smoke 2015 is the last version you can buy.

Oliver

Oliver Peters Post Production Services, LLC
Orlando, FL
http://www.oliverpeters.com


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Jeremy Garchow
Re: Avid Rentals
on Apr 7, 2014 at 3:06:45 pm

[Oliver Peters] "FWIW - Autodesk also shifted to subscription for Flame, Flame Premium and Smoke. Smoke 2015 is the last version you can buy."

Do they give you an out, or is it all or nothing like CC?


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Craig Seeman
Re: Avid Rentals
on Apr 7, 2014 at 3:47:41 pm
Last Edited By Craig Seeman on Apr 7, 2014 at 3:48:33 pm

More details from Studio Daily.
http://www.studiodaily.com/2014/04/avid-adds-subscription-options-to-media-...

Users will also be able to buy Media Composer 8 outright for $1,299


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Craig Seeman
Re: Avid Rentals
on Apr 7, 2014 at 3:50:05 pm
Last Edited By Craig Seeman on Apr 7, 2014 at 3:50:53 pm

From Avid with cost comparison breakdowns.
http://www.avid.com/static/resources/common/documents/datasheets/Media_Comp...

Note that subscribers get Symphony.


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David Powell
Re: Avid Rentals
on Apr 7, 2014 at 11:38:40 pm

So Avid FX is additional option now? And Symphony includes a lite version of Boris CC rather than full?


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Oliver Peters
Re: Avid Rentals
on Apr 7, 2014 at 11:47:09 pm

AvidFX is no longer included, though you can still buy it from Boris. BCC Lite (a subset or BCC) and Sorenson Squeeze Lite (fewer codecs and presets) are included with Symphony or in the Production Pack option. You have to buy upgrades to the full versions. Note that the Symphony option is a lot cheaper than before, too. The reasons are the reality of the cost of licensing these apps in the bundle, when the core software price is already so low.

Oliver

Oliver Peters Post Production Services, LLC
Orlando, FL
http://www.oliverpeters.com


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Oliver Peters
Re: Avid Rentals
on Apr 7, 2014 at 11:40:00 pm

All or nothing. If you previously bought Smoke, etc. with a perpetual, that version will still work, though.

Oliver

Oliver Peters Post Production Services, LLC
Orlando, FL
http://www.oliverpeters.com


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Chris Harlan
Re: Avid Rentals
on Apr 8, 2014 at 1:42:07 am

I just marked my calendar, because YOU just said something nice about Avid. Almost knocked me over.


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