The future of FXhome!

KirstieT
KirstieT StaffAdministrator, Moderator, Website User Posts: 1,083 Staff
edited July 14 in General


Hey everybody,

For the last 20 years, FXhome has been developing creative software and shaping the most supportive filmmaking community in the world. We love what we do, and we’re inspired every day by you and your fellow creatives, now 6.3 million strong.

All this time, we’ve forged ahead in the industry alone, but now we’re thrilled to announce that we’ve become part of the fantastic Artlist (artlist.io) family

This next step in our journey is a huge leap forward for our software and our community. Together with Artlist, we’ll drive forward to create even better, next-generation creative tools and assets to empower you to tell your story.

Our users have and will always be at the heart of everything we do, and we're going to keep you up to date as we progress. Thank you for everything you’ve helped us to build - we can’t wait to create a better future together! 🎉

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Comments

  • Andy001z
    Andy001z Moderator, Website User, Ambassador, Imerge Beta Tester, HitFilm Beta Tester Posts: 3,086 Ambassador

    Good luck Fxhome and congrats Josh. Look forward to seeing the fruits of this great merger.

  • tddavis
    tddavis Moderator, Website User Posts: 4,899 Moderator

    Great presentation, Josh. Nailed exactly what was discussed yesterday in my opinion, and a great idea to do.

  • Stargazer54
    Stargazer54 Moderator Moderator, Website User, Ambassador, HitFilm Beta Tester Posts: 3,196 Ambassador

    Yep. Great pitch, Josh! All the best for the FXHome staff going forward. May the Force be with you!

  • FilmSensei
    FilmSensei Moderator, Website User, Ambassador, HitFilm Beta Tester Posts: 2,987 Ambassador

     Congratulations to both Artlist and FXhome for jointly moving forward with equivalent visions. I am certain that the whole will be greater than the sum of its parts, and all parties will benefit tremendously from the merger.

  • Dewr
    Dewr Website User Posts: 145 Enthusiast

    Congratulations!

    Will this mean that there will be more development on the horizon? More exciting additions to Hitfilm?

  • tddavis
    tddavis Moderator, Website User Posts: 4,899 Moderator

    @Triem23 From a purely self-interested POV, I wanted to ask if this could possibly mean a push for Android Camtrack development but held my tongue.😝 In reality, I suspect that Android is simply lacking to be able to ever run it well.

  • Triem23
    Triem23 Moderator Moderator, Website User, Ambassador, Imerge Beta Tester, HitFilm Beta Tester Posts: 19,592 Ambassador

    @tddavis an Android version remains problematic due to the varying hardware specs - for example, Laura and I have some cheap tablets we use as e-readers that don't have gyroscopes and accelerometers, and Laura's BLU phone also lacks that hardware.

    Of course if an android device lacks the hardware for measuring its own movement it can't run a camera tracking app.

    I hold out hope, but understand an Android CamtrackAR is going to be limited on compatible devices.

    But this merger might be great news for the Linux crowd hoping for Linux Hitfilm, and an injection of cash and dev staff has to help FXhome do an Apple M1 compatible version. That's a good thing!

  • Dewr
    Dewr Website User Posts: 145 Enthusiast
    edited July 14

    I am hoping for an Apple Silicon version too.. And lots more wonderful tech inside!

    Would also like to see something specific for Matte Paintings.

  • Dewr
    Dewr Website User Posts: 145 Enthusiast

    Perhaps Blackmagic RAW might make an appearance in a new iteration.

  • iamkhanproductions
    iamkhanproductions Website User Posts: 385 Enthusiast

    congratulations FXhome, sorry I'm late for the party!

  • ndpproductions
    ndpproductions Website User Posts: 26 Enthusiast

    Congratulations! I'm looking forward to seeing the future of FXhome!

  • RikVargard
    RikVargard Website User Posts: 98 Enthusiast

    I think this is amazing news! I'm so happy for the amazing team and I hope this will be a new level of era of amazingness!

    Congratulations, you guys deserve all the best that's coming to you for all the best right reasons! 👍️

  • jtjutsvfx
    jtjutsvfx Website User Posts: 61 Enthusiast

    I am so grateful for you guys! I could never have started VFX without you and you have truly made a massive impact in the filmmaking community! Can't wait for what you do next!

  • tddavis
    tddavis Moderator, Website User Posts: 4,899 Moderator
    edited July 16

    Technically speaking, with the current model of purchasing Pro and getting a year of updates then renewing that year of updates the next year, it kinda, sorta, from a certain point of view is already a yearly subscription. It's just the best of all worlds in that we never get locked out of the program should we not renew that year of updates and we can keep it operating at the last update version we got. Also, if we see new features two years later, we can always buy that level program with another year of updates. Granted, we'd lose any upgrade premium from renewing every year cause basically we are buying a new version. But a case can be made that is basically a subscription model now, just a generous one not one sided one like...er...cough er, A&$&$ has.

  • Dewr
    Dewr Website User Posts: 145 Enthusiast

    As long as I wouldn't be tied into paying, I'd be happy. Even if, let's say, more products were introduced that expanded the toolset, I hope that you can just buy what you want when you want then upgrade when able.

  • Dewr
    Dewr Website User Posts: 145 Enthusiast

    I sincerely hope that they do not go the way that Adobe has. I prefer the Blackmagic way, where it is one payment and that is it.

    But with Hitfilm, I would be ok with paying a single payment for the year, and if I need to when required, paying again for the new version.

  • triforcefx
    triforcefx United StatesModerator, Website User Posts: 1,225 Moderator

    @Dewr Just remember that the Blackmagic model only works because their software development is subsidized by the sale of very expensive hardware, and Resolve is also designed to build brand loyalty to the Blackmagic ecosystem and ultimately get users to make a hardware purchase. For instance, if you use Resolve because it’s free and it becomes your primary editor, then later on in life you’re looking at a camera purchase/rental for a big project, you’re now much more likely to grab a Blackmagic camera over a RED camera, because you know it will play very nicely with your editor of choice.

    FXhome never had this luxury since they were only making software, which takes time and money to create. (NOTE: The following is pure speculation, I have no insider knowledge on this) However, with the Artlist acquisition, we may ultimately see the software become more affordable over time, especially if they integrate Artlist content with HitFilm and other products, partially subsidizing the cost of the software.

  • Triem23
    Triem23 Moderator Moderator, Website User, Ambassador, Imerge Beta Tester, HitFilm Beta Tester Posts: 19,592 Ambassador

    @triforcefx Blackmagic using Resolve to drive hardware sales is nicely illustrated by "Buy a Blackmagic camera, get Resolve 'free.'" Of course with ATEM switchers you can set up ISO recordings and the mixer creates a Resolve project so you can load in your show for post edits.

    @Dewr this has worked well for Resolve as Blackmagic has been willing to buyout other companies (the NLE, Fairlight audio and Fusion modules were all mature software acquired by Blackmagic and bolted into their color correction software) and actually use/improve/develop the product - unlike some companies, which buy out other companies to either flat-out kill it, or leave it as is forever. Mixamo comes to mind as an Adobe acquisition which has never been updated. The updates to Resolve are great for Resolve users, but Blackmagic's profits come from cameras, console switchers and color control units, and let's not forget format converters (high markup on those SDI/HDMI converters!).

    Artlist... Ugh, I have a couple of data points I can't elaborate on due to an NDA, but publicly available information information can be used to make the point.

    So, this article discusses a $48 mil investment in Artlist last year. Article also states that, while Artlist isn't forthcoming with its full financials and profit statements, they say they've always been in the green.

    With FXhome we can extrapolate from their own statements that, in 2020, Pay What you Will raised over $100,000 for charity. Let's up that number to $150k. Ok, let's assume that all of that was at a 10% to charity tier (it wasn't). That's $1.5 million in Express add ons. Now, the majority of FXhome sales are Express add ons, but let's assume half the income of FXhome is Express add-ons. That's about $3 mil in 2020.

    Remember, I rounded up projected Express income and assumed that's half of FXhome sales, not the majority (more than half). So, while a $3mil business is nothing to sneeze at, this number is mostly likely too high.

    While we don't know the value of Artlist, the fact that they have always been in the green and are profitable enough to gain $48mil investments means that it's not unreasonable to assume that Artlist is worth 15 times of what FXhome is, if not more.

    This means Artlist pretty much has to be able to sink a big chunk of cash into FXhome. This means they can hire more devs. This means they can buy more testing and development hardware - might this lead to M1 optimized Hitfilm? Well, that's probably in-progress, but will help get that out faster. Maybe it'll suddenly be economically feasible for FXhome to do Linux software! Maybe more mobile software. More devs means our base Hitfilm, Imerge and Ignite can iterate and improve faster. Maybe we'll get an Android CamtrackAR! Maybe Action Pro will come back from the dead!

    More money has to go to other areas. Hitfilm's growth is largely word of mouth and referral (how often do you actuality see Hitfilm ads come up?). What could the marketing team do with a larger budget?

    This all leads to economy of scale. Long-term Hitfilm Pro users might remember how the price of Hitfilm has varied. At one point it was $399, then $299, then $399, then $299, then $349. Now, some of this is dependent on third party tech - the last price increase was when Foundry got added, and I'll betcha a lot of that increase was the license fees for Foundry.

    Which all builds to this - if improved development and increased advertising leads to an uptick in sales, then, the per unit price of FXhome software might actually go DOWN. This isn't wishful thinking, there are real world examples. But, as triforce said in his last post, with the media sales from Artlist being folded into the software sales from FXhome under a single entity, there's no reason why Hitfilm 2023 can't be cheaper than Hitfilm 2021.

    Now we, as a community, just have to keep the faith and trust FXhome agreed to this acquisition for the right reasons - to improve the product - and not get into a "Artlist will ruin everything" panic. If we trust and support FXhome during this transition, and not flee for other software, then we will help them grow and reap the benefits of better - even *knock wood* cheaper software for us!

  • Dewr
    Dewr Website User Posts: 145 Enthusiast

    I hope you do understand that this is a big step for us customers. We are used to things being a certain way. It would be nice to see things in Hitfilm that none of the other companies have.

  • spyresca
    spyresca Website User Posts: 199 Enthusiast

    My prediction (and sorry for negativity here) is that within a few years (or product revisions) that Hitfilm will go to a somewhat traditional Subscription model. And that many here will defend that (for whatever reason). I'm basing that on the official word (twitter) from that they aren't ruling out

    ----

    Thanks for your question! Subscription works really well for the Artlist community and libraries, but there are no immediate changes happening to HitFilm. We'll let you know if any additional pricing options become available in the future - so sign up for our newsletter! - Steven

    ----

    Not exactly a confidence building statement from them.

    When a few years passes, I truly hope someone points to this message and it turns out that I was completely wrong. But I kinda don't think that's gonna happen, unfortunately.

  • Triem23
    Triem23 Moderator Moderator, Website User, Ambassador, Imerge Beta Tester, HitFilm Beta Tester Posts: 19,592 Ambassador

    @spyresca we'll see what happens, but for any company to ever say "we're not going to change xyz ever," would, in itself be a worrying statement, because the future can't be predicted (I'm remembering a teenager who visited a few years ago who wasn't sure if he'd download the software because it might not, one day, be available in the future for the rest of his life. All i could respond with was that FXhome still allows users to download their Alam DV from 1999 if they own it, but no one could guarantee that FXhome would be around in another 50 years). FXhome states that, for now, they have no plans to change anything but have to be honest enough to admit that changes can happen in the future - whether through an entirely FXhome based decision, or through input from Artgrid.

    Whether or not Fxhome ever does change to a subscription model will mostly be driven by economic factors. As I said in my prior post, walking away from FXhome now hurts the chances of the software stay under the current pricing model. The long term support from the current community is going to influence how Artgrid treats the software, so, let's hope for the best and plan for the best.

    If, in the future, something happens you disapprove of, then change then.

  • spyresca
    spyresca Website User Posts: 199 Enthusiast
    edited July 16

    Well, the wishy washy nature of their statement does not fill one with assurance.

    It shows they are officially open to "Additional Pricing options " (hm, what could that be?) in the "Future" (Tomorrow, a year from now, what time frame exactly?)

    I truly hope I'm wrong, but I'm guessing that these "options" will be subscription based and they'll be sold as some kind of upgrade. ("Hey kids, its all subscription now, but you get some free content from artlist!" or some such).

    It's cool to hope HF as a subscription won't happen (my position) but seems a bit silly to assume that it won't, can't happen or is not a real possibility.

  • triforcefx
    triforcefx United StatesModerator, Website User Posts: 1,225 Moderator

    @spyresca PR statements from almost any company are often written to be ambiguous so that if something changes, the company won't have people trying to sue them.

    If FXhome and Artlist are to be believed, they both want the absolute best for the communities they serve. If HitFilm moves to a traditional subscription model, I believe it will only be after substantial research and community input that they move forward with it. And hopefully, if they do something that causes significant backlash, they will re-evaluate and do the right thing.

    For all we know, Artlist is just as big a fan as we are for the current software pricing model- in fact, Artlist subscriptions come with a license agreement that any assets you use in a project are yours to use forever, even if you cancel your subscription... so they appear to be familiar with the concept.

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