updated 12:10 pm EDT, Tue September 19, 2006
IBC tradeshow insights
Apple is among the highest profile companies in the post-production markets, according to a new survey from an investment research firm. Analyst firm Piper Jaffray said that Apple had one of the busier booths and packed customer sessions at last week's Amsterdam-based tradeshow IBC focused on creation, management and delivery of content for the entertainment industry. The firm said that Apple is, by far, the favorite solution provider for the European post production market, as professionals look to Apple for video editing solutions, such as Final Cut Pro Studio and the newly released Mac Pro. A survey of 35 European post production professionals on their spending habits and trends found that 83 percent are expecting to spend the same amount or more (compared with 2006) on post production tools -- a signficant increase from 53 percent who expected to see 2006 budgets stay flat or increase (as compared with 2005). More importantly for Apple, among those who expect to spend more, Apple's solutions are among the top of their list.
According to a research note published by Piper analyst Gene Munster, nearly 42 percent expect to spend money with Apple, while 33 percent expect to spend money with Autodesk, and 21 percent with Avid.
In addition, the survey fouund that post production pros are currently doing 28 percent of their work in HD, an increase of six percent from last year. The numbers are in line with those obtained by a similar survey of US-based professionals at NAB 2006 (April), which found that 25-35 percent of professionals are completing their work in HD.
The survey, however, did not find signs of Apple market share gains. Munster said that Final Cut Pro, Apple's popular video editing solution, is seen as a way to help Apple expand its market, but that it was not a "not a critical component to the Apple story."
Although 60 percent of those surveyed used Apple's Final Cut, only 11 percent indicated that they had switched from Avid solutions to Apple technology. Most of the professionals -- nearly 90 percent -- started using Final Cut or switched from a non-Avid product to Final Cut.
"While Final Cut is not a critical part of the Apple Story, we do see it as a way for Apple to continue to expand its footprint and entice potential customers into buying a Mac Pro," Munster wrote in his report. "We believe Final Cut currently accounts for less than 3 percent of Apple revenue."
The firm maintains an 'outperform' rating on Apple stock with a price target of $99.