While I can't say Avid is in a complete free fall, the company does seem to be at least headed in the wrong direction. Philip Hodgetts notes the same thing. Avid is not looking as good as it once was. Reuters reports:
* Company to sell audio products line to inMusic
* Corel to buy Avid Studio, other video editing products
* Avid to receive $17 mln in proceeds from the sales
* Avid plans to cut workforce by 20 pct
Avid has plenty of cash-on-hand to survive for several more years, especially given the strength of their harware business. But can Avid keep pace with the onslaught from Adobe, Apple, Autodesk, and Blackmagic? I wouldn't be too surprised if in 3-5 years Avid is selling only 1 NLE (either Symphony or Media Composer) and focusing mainly on storage/hardware interfaces. Their aim will be solely the niche market of Hollywood film and TV broadcast. The rest of the pro market (news, education, corporate video, weddings, etc) will be attacked by Apple, Adobe, and one day Blackmagic (see Davinci Resolve for it's beginnings as an editor). Cutting thousands of jobs and reporting poor earnings quarter after quarter is a surefire way to crash and burn (see also: RIM).