German software producer Magix, the producer of Vegas Pro which is based in Berlin but also operates subsidiaries in the USA and Canada, has filed for insolvency.
According to their press release, the company comprising 200 employees, intends to sustain their operations until a new investor is secured. They aim to finalize a deal within the next two to three months.
Sinking revenue due to complex portfolio
Magix, which is known mostly for their Magix Video deluxe and VEGAS Pro NLE applications (which it bought from Sony in 2016), as well as their Music Maker software, has reported that revenue fell dramatically from thirty-two million Euros in 2021 to twenty million Euros in 2023. A complex product portfolio in the last years has mostly been blamed – this has led to confusion amongst customers.
Magix offered four versions of Video deluxe, three of Vegas Pro, and two of Magix Video Pro. These were priced from €60 to €400 and offered vastly different sets of functionalities.
This complex portfolio not only confused customers but also led to problems in product development, harming core products and their features. The company also blamed the slow adaptation of cost structure and a failure to use modern e-commerce methods for their problems. It has announced restructuring measures – which usually means layoff of personnel – in the near future.
Focus on Vegas
Now the company wants to focus on Vegas, although Video deluxe will continue. Instead of three or four versions, only two versions of each product will be available. Releases already planned will go ahead as scheduled, the company said.
Difficult market with free version of DaVinci Resolve
I think it’s fair to say that NLE software isn’t an easy market to be in, with a powerful software such as Blackmagic DaVinci Resolve being available for free in its standard version. Full disclosure, I am a certified Blackmagic trainer, but even our recent poll on the subject of NLEs showed how much of the market Blackmagic has already taken – see a screenshot of the current results below.
Are you using Magix products? Will you be making the switch to other applications now? Let us know in the comments below!
