Avid Technology ( AVID Quick Quote AVID - Free Report) recently announced the launch of its latest Pro Tools release, 2022.09, with new features for the music community.
The recent version of Pro Tools will provide music creators of every skill level with new workflows such as Celemony Melodyne and SoundFlow Cloud Avid Edition.
Pro Tools is featured with Celemony Melodyne software via ARA 2 (Audio Random Access) for quick vocal tuning, creating harmonies and re-voicing instruments and fixing rhythm timing. To simplify audio setups, Avid Technology is powered with another technology, Aux I/O. This enables flexible audio routing to and from Pro Tools to various software and hardware simultaneously.
Avid introduced the Pro Tools Software in late April 2022 as a new lower-priced tier directed at the music creation community. Music creators can use the software to make beats, write songs, record vocals and instruments and mix studio-quality music.
The initial result from the Pro Tools Artist offering reflected solid demand for the product, which helped to increase Avid’s subscriber base and positively impacted the subscription revenue growth in the second quarter of 2022. The recent offering of Pro Tools software is expected to increase the company’s brand awareness for the product as musicians and producers will use the product for developing their music.
Avid Latest Pro Tools Launch to Drive Top Line
Avid is facing competition across its product offerings from companies like ChryonHego corporation, Dell Technologies, Adobe, Yamaha Corporation and big tech giants like
Apple ( AAPL Quick Quote AAPL - Free Report) .
Apple has cut into the video editing space as it provides less expensive digital video editing software. Apple’s video editing software uses machine learning to help provide video editing features and is currently available with its latest iPhone offerings, which are helping the company to gain market share in the video editing software market.
Avid also witnessed a 10.6% decline in integrated solutions revenues in second-quarter 2022, as the company continued to face challenges in delivering certain parts of its integrated solutions portfolio to customers due to global supply chain constraints. In the first half of the year, Avid’s unfulfilled contractually committed orders were more than 20 million. This impacted revenue growth negatively.
However, to deal with the rising competition, Avid has forged strategic partnerships with other FAAAM companies like
Amazon ( AMZN Quick Quote AMZN - Free Report) and Microsoft ( MSFT Quick Quote MSFT - Free Report) .
Avid has partnered with Amazon studios to help in Amazon’s content production in the cloud with software such as Media Composer, Nexis storage and media control platform.
Avid is also benefiting from its multi-year agreement with Microsoft, which includes technology collaboration, co-development of cloud bases solutions and the launch of several software-as-a-service offerings. This partnership is helping Avid create new technologies, which are attracting new users to many of its subscription-based product offerings.
In the second quarter, Avid realized net adds of 18,500 subscriptions and delivered year-over-year growth of 22%.
The company expects that the effects of the supply chain constraints will start resolving from the second half of 2022, and Avid will be able to cover much of its backlog.
Also, rising inflation has placed huge pressure on media technology budgets, while content output is expected to increase exponentially to meet the rising demand. To attract next-generation creators amidst this market volatility, Avid created the Pro Tools Artist as a low-priced tier, which will contribute to its subscription revenue growth.