How do they actual make money? I've been using Resolve for years without paying for it (and without thinking about its business model too much). It seems that they sell quite expensive professional hardware so I assume the software users are just compensated by hardware users?
I used to work at Blackmagic, wrote some of the peripheral code around BRAW and did some work with the Resolve guys up in Singapore.
Used to have lunch regularly with one of the owners too. Need to check in with him again!
At least back in 2019, BMD made a lot of money selling professional licences for DaVinci Resolve. I don't know exact figures but that part of the business was healthily profitable of its own accord. Very, very healthily profitable!
Most parts of the business were profitable standalone, AFAIK. Their model didn't revolve around loss leaders, burning VC money or anything like that; just selling good products at fair prices and making bank.
I think a big part of it was a fairly lean culture (whole company was bootstrapped and grown sustainably), and specifically in the case of DaVinci they bought out an existing business that had already done a lot of the development and marketing work for absolute peanuts.
I'm just a satisfied customer (Resolve and hardware), but it probably helps that it's a private company run by a cofounder CEO that seems to both understand and care about the company, its products, and their market.
From an outside perspective, "selling good products at fair prices and making bank" sounds about right for the hardware, but I always assumed the Resolve software itself was, if not a loss loss-leader, also not a major profit center.
Then again, there's something to be said for volume, especially in a market that includes lots of independent operators and dedicated amateurs worldwide who are willing to spend what good money they have on their craft.
Yep, I don't remember a whole lot about them though.
(Actually, anyone else from BMD here? Was that the product that the Industrial Designers won second place in the design awards for, losing out to the accessible playground?)
Hardware. It's like the Apple model (before they got into services). They sell a full suite of hardware that works great with their software, and they see the software as a way to keep good will, and also showcase their tech well.
They also sell a paid version, if you want a few extra features.
Their hardware is deeply reliable, affordable, and you can see that they have super solid software chops.
I made the unconventional choice of using a Blackmagic Micro Studio 4K camera for a robotic application and it turned out to be a not crazy choice - we get our choice of lenses and they have controllable focus and zoom, there's a REST API for the camera (which can connect to Ethernet), etc. To speak nothing of the crisp image. And that I can pick one up in 30 minutes at B&H (in NYC).
Industrial vision cameras can cost ~the same but you'll want to rip your hair out before you get to grab an image (or change the focus - sorry, that's mostly never possible).
Huge, huge fan of Blackmagic. The rock-solid free editing software is just cherry on top.
We use the SDI output (that cable is sturdy and the bnc lock connector is rock solid) and a Blackmagic 12G SDI to HDMI converter, and then an El Gato HDMI capture card.
Intuitively, I’d say most of the delay is coming from the HDMI capture side (it’s a pretty cheap usb dongle).
I measured 40ms, so about 1-2 frames of lag. This was the camera's hdmi output captured with the el gato dongle (whose performance I underestimated..!)
Yep, I was at a broadcaster when we bought a whole pack of their SDI capture cards... the only ones on the market really (everyone else wanted to sell you massively expensive enterprise "appliances") for a very affordable price (I believe they were like 500$ a piece for 4 SDI inputs?).
Also they were first to sell us USB3 based HDMI capture devices that we could take around and do live capture from cameras at full HD for also a pretty affordable price (around 1000$?).
Whenever we needed affordable (semi) professional gear, they were consistently the ones to look at.
That and I imagine the overwhelming majority of professional users pay for the Studio license. It has a few quality of life things that are a total no-brainer when you use it to make money and/or are paying the person using it.
Resolve also has a premium Studio offering with some features that are particularly appealing to professional users. I assume that helps cover some of their costs.