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Re: Avid upgrade policy question

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Michael Phillips
Re: Avid upgrade policy question
on Feb 11, 2017 at 2:47:03 pm

The only value of the perpetual license is that you have ownership of a license once you stop the support even if stuck at whatever version it was last updated to. But I do agree that there was a "mostly-forced" upgrade for all perpetual license owners by the end of 2015 as a way for Avid to back and get more revenue from their existing long time users. Basically, pay for the $299 upgrade whether you feel there is value there or not, or sometime after 12 months if you do feel there is value, you need to buy it all over again and any investment in Avid MC over 12 months has no value. Unlike Pro Tools which has a rich third party development and Avid Marketplace, MC cannot be the catalyst of additional revenue from the Marketplace via a revenue share strategy.

And there is a penalty against dongle owners that may have left it lapse as for whatever reason (not technical), existing dongles cannot be updated if past the 12 month plan. You either go to subscription or pay an additional $500 for a new dongle. At the time, owners of ScriptSync and PhraseFind were in a pickle and it was only revealed recently that there would be amnesty for those license owners. But at the time, it was a "Sophie's Choice".

The same "new" applies to subscription only... if you let whatever plan expire you can't just pick up again but need to get a new MC with its subscription as the old one associated with your account is no longer valid. That is very confusing to users and one has to say that the Application Manager does no favors in making any of this easy.

Sometimes I think a side effect, intentional or not, is that this new method helps with the "number of seats" on quarterly earning calls. For example, if a single subscriber rents every other month for one month each time, that single user can be counted as "6" when the CEO touts the number of subscriptions per quarter since there is no further distinction of type of subscriber, or currently "active" number of licenses.

And yes, I also agree that as a professional, the $299/year should not be a limiting factor. Avid's challenge for revenue growth is to go beyond it current "pro" market with offerings in order to increase seat count, which then attracts third party developers, which then supports a Marketplace strategy, etc.

My two cents as a "pro" user and a very small third party developer. ☺


Michael


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