Hùhuì hùlì: Mutual Benefit – Avid Technology and Beijing Jetsen Technology Co., Ltd
As Senior Vice President of Global Sales, Tom Cordiner oversees all commercial activities for Avid Technology, including managing the sales and pre-sales teams located around the world. Mr. Cordiner, who joined Avid in 2012, is an experienced international technology sales executive with extensive background in broadcast, media and telecom.
The big partnership for Avid, in recent times, has been in China. How is that progressing?
“The partnership with Jetsen is progressing very well. It’s obviously a difficult market, China, I think. Everybody expects there to be a lot of growth potential. But, obviously, there’s a lot of political factors in play there as well. And, I’m not sure if the television broadcast industry is necessarily growing at the rate that I think the market analysts, etc., expected.”
“Our business is certainly going very well. I think it’s shown us a different type of business model and how that can be effective. And, I think that was possibly one of the things that kind of prompted our thinking, more about volume product agreements and enterprise agreements. I actually can see us in certain markets where it’s difficult for Avid to have scale in perhaps more emerging markets around the world. If we have a very ambitious and a very good committed partner there, I can see us doing more of those types of agreements in certain other regions around the world, too.”
So, roughly, how does the Jetsen model work?
“Basically, we have a minimum guaranteed commitment in terms of purchase orders and shippable product, and services and support that we will do, and they agree to pay us a certain amount of money each quarter. Again, it starts at a minimum commitment and, of course, there’s incentives as well.”
You mentioned some analysts were over-estimating the broadcast market in China. What about the wider post-production market?
“If you mean the film industry, I think everybody knows that the market in content in China is going to continue to proliferate. I think it’s going to overtake Hollywood as the biggest box office in the world. I think it might be next year, is what some people are predicting. And, obviously, I don’t see that slowing down anytime soon. So, I think that the investment in acquiring content is going to be very, very large. That’s obviously different to producing television programmes. So, I think that the content market, in terms of film rights, is going to get bigger.”
And, with the Avid Marketplace, does it position the participants in that to take advantage of markets like China?
“Potentially, it can. You’d have to have an agreement for people to be happy to put their content on the Marketplace, and I don’t know if a Chinese film studio would want to put their content on a US-based content market place. Perhaps they would, because, of course, that gives them then reach to sell that content internationally. I think it’s more the other way. I think it’s more through American content coming into China and then being reused. And, of course, China generally making more investment in American studios and American film companies. So, as an American film is successful around the world, not just China, the Chinese company that has made an investment in that obviously makes the benefits from it. And that’s part of what Jetsen do, for sure. They make some very strategic investments in content as well. It’s definitely part of their business. But yes, they do that as well.”