Avid posts bigger losses than expected in the second quarter

Avid has suffered a bigger-than-expected 32% loss in its revenue in the second quarter, mostly due to the 36% decline in its product revenue. Although Avid is an immensely popular NLE video editing solution, the increasing popularity and accessibility of Final Cut Pro may have something to do with Avid’s loss of market share. Final Cut Studio is a particularly compelling offering, not least because it bundles Final Cut with Color, a formidably powerful color-correction system that used to be sold as a stand-alone application with a price tag of several thousand dollars. This situation may superficially resemble Panavision’s struggles. Be that as it may, the deep and protracted economic downturn we are experiencing is surely not helping.