Their demise has been rumored for many years, but if you work in the film and tv business in Hollywood that works on deadlines, there is nothing that comes close to the avid workflow, not even in the same universe. I work in the Multicamera sitcom world and the turnaround time and time restrictions (22:38) and script revisions etc etc... no one offers anything that a 10 year old avid system does all day every day. I'm not a fan of using the software since I don't edit stuff in that world, but I work in that world and I talk to the editors all the time and avid just works. Even if the company went out of business today, I can't see anything replacing it, Adobe has light years to go to address the daily workflow issues of most Broadcast TV (and motion picture) editors.
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To ddm, your point about Avid's model in the film and tv production business is well taken. BUT, more... we here to say more about business savvy...let's say Avid is the defacto operation in the top 200 pro shops. The fact that they don't make expenses and are unable to re-invest their systems development for the future even from this base of customer....then, business protocol spells disaster.
Same applies to SCS, if they can't get it together, for even the hobbyist NLE systems out there - the expenses are simply going to overwhelm their operation and their future in the market.
As I said before, there is NOTHING out there to replace Avid Media Composer for the vast number of productions that are using it. NOTHING. Productions would just keep on using it tomorrow as they did today. It's interesting to speculate on what might happen, obviously things would start to change, my thought is that a User Support type group would spring up to support and continue development, at the very least. For g's sake, Avid produces Protools as well, that's as well integrated in the world of Pro Audio as Media Composer is in the high end TV and Film community.
A show that I worked on for 3 years (ended last year) was using a Standard Def Avid Meridien system that was ancient, yet it was still delivering everything that Online post needed to cut their HD 1/2 multicamera sitcom.
I think what we can deduce from Avid's problems and why Apple got out of the Pro editing market with FCP X is that it's hard to make money selling to and supporting the demanding high end of this market.