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Rumor that Apple will sell Final Cut & Pro Apps

Dan Carew

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Frank Capria writes in a post on the new ProVideo Coalition site (http://provideocoalition.com/index.php/fcapria/story/apple_avid_and_nab/):

Word on the street is that Apple has been shopping ProApps around since late last summer, and a deal was close last fall. Now such rumors have reached a fevered pitch, with ProApps apparently sold with all but the final announcement to be made. Potential buyers include Thompson, which has been on an acquisition spree of late, and would love to add an industrial strength NLE to its newsroom offerings. No one will speak on the record for attribution. Until then anything can happen, but sources say morale in the ProApps group is low. Key members of the team have been moved to consumer-focused products like iMovie. Others have begun preparing for life after Apple.

Has anyone else heard this? It'd explain why they're not at NAB. It's mind boggling to me. I wrote about it on my blog:

http://indie2zero.com/2008/02/09/final-cut-to-be-sold-by-apple-whoa/

Punchline of which is:
I was about to switch my small post-production studio from Premiere/Cineform to Final Cut--with plans to spend US$30K on Apple hardware & software this year. If this rumor is true, there's a good chance I won't make these purchases--as key developers leaving and bad morale at FC, caused by a sale, will set Final Cut back years. I was (gladly) on a slippery slope of converting from PCs to Macs, but this would be a serious fly in the ointment, on the slope...

----------------------
Dan Carew
Hong Kong
dan.carew@kandariver.com
http://indie2zero.com
http://www.kandariver.com
 
Considering so many people predicted the demise of AVID when they decided to skip NAB this is pretty interesting. I've heard rumors that Pro Apps were on the chopping block but nothing that indicated they were close to a deal.
 
I can't imagine that Apple would be shopping its pro apps. To me, it makes little sense. I don't see where Apple is going to abandon their own tools that are used to produce so much of their own iTunes content. ie: Compressor.

Or maybe I'm not looking at it the right way? Maybe they are looking for someone to pick up the pro apps division and run with it as a separate entity, yet it will still be marketed and sold under the Apple label? Could be an opportunity to expand and move the software to multiple platforms too. That could be a double-edged sword for them though...
 
me.

Can't imagine the scenario.
:detective2:
 
ibloom wrote
But you know what, Final Cut in someone elses hands might be more competitive. And Premiere might be the Final Cut Pro of the next decade. The only constant is change.
ibloom,
Taking a long-term view, I agree with you. However, in the short term, this could be a real pain in the *ss for those of us getting our new Reds and trying to set up stable workflows for processing and editing Red footage...
 
Why, what is ownership going to change?

If the acquisition was done well, perhaps not much. But the original source of the rumor reports:
sources say morale in the ProApps group is low. Key members of the team have been moved to consumer-focused products like iMovie. Others have begun preparing for life after Apple.
If this is true, I think it's bad for us--in the short term, at least. Fewer experienced developers means fewer Final Cut (and appropriate Quicktime) updates and bug fixes, less continuity and stability. In my corporate career I've lived through a few acquisitions, where the most talented people leave--despite the best-laid plans of the MBAs in suits. Developer and staff morale is a key factor of Red's success, and it's certainly important for Final Cut's too, IMHO.
 
The proof is in the pudding...

The Bad
No Phenomenon yet
Shake is crippled by every Hardware/Software update. (You can only render on 4 cores on the newest Macs, and 10-bit support for output is sort of wanishing)
When QT/System is upgraded, ProApps are temporarily crippled
No new XRAID since (???)
XSAN and Leopard is a no-no
FinalCut Server? Anyone

The good:
Redcode support
More and more big houses, film-studios and broadcasters (in Norway at least) jump ship from AVID/whatever
Color. It's a nice app.
There's not really much but video where you need the high-end Macs.

The speculation:
Jim, Jarred and Graeme seems overly excited about this years NAB.
AND are highly Apple dependant.

My partner is looking into jumping ship to Avid or setting up a Smoke suite.
And Nuke seems like a tempting beast.

Last NAB seemed so promising for everything Apple/ProApp.
But focus is evidently AppleTV/iPhone/iPod/iTunes/Thin Air

And I guess the business of laptops/consumer gadgets is a better one than towers, Pro Workflow Solutions and Pro Applications.
If it's broke: Replace it, as compared to load shouts for support.

So maybe an other owner could take better care of the customer base?
Apple's developing nice hardware for the pro segment, but is someone else actually caring for the software such a bad idea?

Gunleik
 
This rumor strikes me as extremely unlikely.

The notion that a company of Apple's size can only effectively sell products to one market at a time is silly. Frankly, I think the idea that the Pro Apps are neglected is largely the result of unrealistic expectations. To hit a few key points:

- FCS got a major update less than a year ago. Logic got a major update just six months ago. Upgrade cycles are typically 2-3 years or even longer for professional apps. Nobody could reasonably expect another major update for FCS at this year's NAB.

- As far as bugs with system updates... Adobe Creative Suite also has those kinds of problems. Anyone think Adobe's planning to get rid of it?

- When talking about a Shake replacement, the only date Apple gave was "2008". It's only February, folks.
 
I can't say much here. All I can tell you is what I know... Not why:

Apple as considered selling it's proapps division for the last 5 years.

Jobs has always fought against it, but weakens every time.

The ipod and iphone have changed his stance now as apple moves more towards the consumer direction.

Standing line at Apple: "If the price is right" Good news for you Apple types is that there are a lot of requirements to the sale that make it hard to pull off. But....

It's simply a matter of time.

What? You think I stayed away from windows cause I love Gates? No... It's cause I have relatives in the right places.

Apple has no loyality to anyone other than itself. The proapps division is very expensive and makes no money.

Jay
 
I think that somebody who write the rumor like this wants only to increase its website traffic.

It's just a pure rumor.

"Apple is reportedly expanding its Cupertino campus by taking possession of buildings abandoned by HP,
and in some cases is knocking down the old structures to construct new ones.
SetteB.IT reports that Apple is hiring new staff every week to fill the new areas of the campus,
since Steve Jobs does not wish to move the headquarters outside of Cupertino.
HP’s old buildings have painted-over signs, with addresses still written in HP’s typical company font;
some signs have been finished, bearing the unmistakable grey logo."


Apple just expands, renovates Cupertino campus.

12-cupertino-in1.jpg
 
Just throwing it out there, but I wonder if there are any small, upstart-like cinema companies with tons of money that could benefit from buying FCP?

Red Digital Cinema
 
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