Quote:
Originally Posted by Park Seward
Bill,
From what I have been able to read and listen to their accounting videos, it seems they were concerned with software releases and not warranty issues. They explained that since the software was active and the company was supplying bug fixes, they should spread the revenue over the time the software version was active and the customer was being supplied with updates and not book the entire revenue when the software was sold.
I think this is what all the past accounting issues were about and why they had so much work to do. They wanted to spread out the revenue from past sales.
And now with paid updates, they can book the total revenue of the sale when it occurs since we will pay for the updates. They don't need to hold much back.
At least this is what I have been able to understand.
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Nice info. And I can understand their need for it. What has me eerked, is the lapse policy and fact you have to repurchase the software.
It's a MAJOR penalty for not staying with their upgrade path when THEY want it.
We IN this business know how it can go up and down. Unforeseen things happen, and for users high and low, that can mean a lot when you have a dead computer.
If all you can do is afford a new computer at that time, AVID screws you for that.
Without the computer the software means NOTHING.
AVID would have a far happier camp of base users, users that would stick around and continue to update when its within their financial means, and time frame.
AVID is shooting themselves in the foot with this "FORCED ANNUAL" policy.
I've just been testing PT 11.3 and am liking it. Solved some crashing issues (related to memory) and has been pretty stable so far.
No video tests though.
I haven't tracked or done a top down mix with it yet, so its a shame that AVID would want to push away customers for accounting needs and bottom line.
They will get the die hards, that will pay annually. But from a business POV, if those 20 percent were always a given, and then let's say 30 percent were maybe first year but, 25 percent didn't continue, and 50 percent were not going to do it.
AVID loses 50 percent from the start. They keep 50 percent the first year, then lose 25 percent the following.
That's a 75 percent loss.
While the first year might look "good on paper", it's steady decline will show how flawed the policy is. And AVID will be right back where they started.
Except, a large majority of their users will be gone.
AVID should lose the lapse/never can upgrade on that license. That is turning away half their user base. Audio and Video.
Then offer something more reasonable that not only keeps the users happy, but gives them options so they don't have to turn to another DAW or video editor.
Not everyone will use support, or even need it. But maybe some want it.
I don't need AVID support like many here.
AVID should have a tiered plan.
No support upgrade. Vanilla/HD - support calls/emails can be case by case basis.
Support upgrade. Vanilla/HD - get the support that is currently offered in their existing Plan.
After 12 months, if the user felt the support wasn't really worth it, don't penalize them for it. Let them upgrade should they choose to.
Updates/upgrades. Updates, that fix bugs for bad testing and programming should be offered to all users who have paid for said upgrade.
Upgrades. Users on a support plan get the upgrade with their support plan.
Users not on the support plan, will have to pay (a reasonable price) for said upgrade.
If AVID releases a new upgrade every 3 months, it shouldn't cost more than a support plan to upgrade.
Upgrades have to be worth it. If it is one new feature every 3 months, then its a scam.
First and foremost, the software has to work. You can keep paying for upgrades and it is still a problem.
Does 12 bring Value? Currently? No. Not with how AVID has setup the support policy. AVID could be smarter, long at it from a longer time frame rather than a year and see how much better it would be if they don't lose half their users or more.
There is a happy place AVID can settle into that the user base will feel better about. Its a question of whether AVID is smart enough to see the long game as they are only playing the short game right now.