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Tim Wilson
Re: Laughably OT: Can you ID an old graphics system?
on Jun 28, 2018 at 10:58:13 pm

[Bob Zelin] "And for the three youngsters reading this thread written by old men - that free Davinci Resolve that you are now using - that was made in Coral Springs Florida, a Davinci Resolve system (with SGI computer) cost $400,000.
Today - free (ok, 35 grand if you get the full control panel). And the Teranex (made right here on Sand Lake Road in Orlando Florida) was between $60,000 and $80,000 - now $1695 new. "


This is of course the absolutely true flipside of what I was just saying, that you can still spend bigger money on systems in order to MAKE bigger money....

....but if you're in a position with limited upside, my goodness gracious, why spend more than this??? The prices are shockingly low to me, but equally shocking that the stuff itself is terrific at that price. Not only did Blackmagic drop the price of of Teranex by north of $70,000 in some cases, they made them smaller, lighter, quieter, and dramatically increased IO and format support. Astonishing.

When we spoke to Grant in 2009 following the DaVinci acquisition, he said, "You know what, there's almost no margin in the control panel. That's how much it costs to make a control panel that good, so I'm not going to be able to reduce the price of that in any major way. I don't know for sure yet, and I'll keep digging, but maybe none at all." And he's right. People who spend even a tiny bit of time on those things understand exactly why the big control surface costs what it does.

DaVinci's model was always to charge as little as they could for THAT, and as much as possible for all the rest -- software, support, etc. -- which of course Grant is interested in charging as LITTLE as possible for. If 4K is good enough for you, then you downloading it for free is good enough for Grant. Or heck, buy a camera for crazy short money and get the "expensive" version free, too. That'll work.

The additional miracle to me is that Grant has made compelling smaller versions of the control surfaces for prices that really do strike me as nutso compared to similarly-scaled products.

But I'll bring it back to Quantel again and note that Grant is free to run his company on the business model that works for him -- which I can briefly summarize in words he wouldn't use to say, "Profit to enable anything more than paying people well and funding future development is theft" 😂 -- and Quantel is free to develop the products their customers need, no more and no less, because they're not on the hamster wheel of public trading.

Not that there's not room for both kinds of companies in my own product portfolio (there absolutely is), but I've enjoyed spending less time watching the stock price of the companies whose products I might consider using, and paying more attention to the companies who are smart enough not to play that game.


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