Avid will turn its attention to the “untapped” independent creative sector with the launch of more subscription-based and free versions of its software applications.
In a call with analysts to discuss the company’s latest financial results chief executive Louis Hernandez said the company had traditionally focused on enterprise clients such as the BBC and NBC Universal as well as post houses, universities, film studios and local TV stations.
Hernandez said: “While we have historically focused on the top two tiers, the tier three market [of independent creative professional and enthusiasts] thus far has been largely untapped by Avid.
“We will be launching a series of new products, including subscription and cloud offerings. This is a new area of focus that has already brought us thousands of new customers and opens the door to an almost $2 billion market not previously targeted.”
Hernandez said: “With Media Composer and Pro Tools cloud-based subscription offering creative artist at all levels now have the ability to use the best tools at a pricing models that works for them.
“You can use the best tools at pricing models that works for them. You can expect to see us continue to make more of our portfolio available on a cloud and subscription basis in the future.”
Hernandez added that “everything on our Artist Suite will eventually have a free version”.
Avid’s full-year results for 2014 showed that net revenue stood at $530m for the year, compared with $563m in 2013. Gross profit in 2014 was $325m. In 2013 it was $339m.
The company said that bookings stabilised in 2014 after declines in 2013 and 2012, and that free cash flow generation of $12.7m was more than double that of 2013.
Hernandez added: “We are very pleased with our progress so far, but we are still early in our transformation of connecting creative professionals with consumers on a common platform regardless of the media form.
“Avid Everywhere is still in its early stages, and we believe the financial expression will be powerful.”