Avid 2005 Annual Report Download - page 12

Download and view the complete annual report

Please find page 12 of the 2005 Avid annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

One of Avid’s biggest accomplishments in 2005 was the acquisition of Pinnacle, which gave rise to a
new Consumer division within Avid. In this area of our business, we areseeing continued growth in
our two coremarkets: home video editing/softwareproducts and PC-based television viewing
products for consumers in Europe and Asia.
Home Video Editing
The main growth driver in the $200 million home video editing category is the proliferation of
digital video capturedevices such as camcorders, digital still cameras with video capabilities, and
cell phones. As more and more consumers use these devices to acquire video footage, the demand
for low-cost, easy-to-use software applications such as Avid’s Pinnacle Studio grows accordingly.
A recent study by consumer research firm NPD Group showed that the market for consumer video
editing software in the U.S. grew by 16% in 2005 – and that sales of Pinnacle Studio grew by 29%,
increasing Avid’s domestic market share by 5 points to 50%. This figure matches Avid’s share of the
European home video editing market, which is also estimated at 50%. With a healthy share of the
global market, projected growth in this category, and continued strength in the Pinnacle Studio line,
Avid is well positioned to maintain its leadership in home video editing.
TV Tuners
In the TV tuner market, Avid is pursuing a global opportunity that is also estimated at $200 million –
most of which is centered in Europe. According to German market research firm GFK, this market is
growing at approximately 14% annually in Europe. Most of this increase is fueled by sales of laptop
computers and a rapid rise in the number of Digital Video Broadcast, or DVB, stations.
These trends in the TV tuner and home video markets point to sizable business opportunities for
Avid, and the outlook for future growth is positive, as more and more customers are expected to
create, edit, and consume media on home computers in years to come.
“In 2005, Pinnacle Studio
grew by 29%,increasing
Avid’s domestic market
share to 50%.”
-NPD Group
CONSUMER
“The market for consumer video
editing software in the U.S.
grew by 16%in 2005.”
-NPD Group