Prices cut all the way down to RED One.
By James DeRuvo (doddleNEWS)
Earlier in the week, RED’s Jim Jannard took to the RED User forums to announce that the company had recouped all it’s development costs on the Epic camera platform and had decided to cut prices. He wasn’t forthcoming about how much the price drop would be until Thursday and it’s pretty steep, approaching 50%, which is stunning. And not only are prices lower on the Epic, but every camera in their product line save the Meizler Module.
As I said before, everything in the electronics world changes… usually for the better, cheaper and faster. Since our costs are now significantly lower we are re-pricing our cameras as of now.now. – Jim Jannard, RED User Forums
The new prices for the RED Brain units are as follows:
5K EPIC-X Brain – $19,000 (a 23% drop)
5K EPIC-X Monochrome Brain – $20,000
5K EPIC-M Brain – $24,000 (a 40% drop)
5K/4K Scarlet Brain – $7,950 (a 19% drop)
4.5K RED ONE M-X Battle Tested – $4000 (a stunning 85% drop!)
That’s a stunning drop in price. The Epic is nearly cut in half, while prices drop all the way to the RED One, which sadly is listed as “end of life,” with only battle tested stock available. And once they’re gone, they’re gone. Which is too bad, too, since at that price point, anyone who was considering buying a BlackMagic Cinema Camera would have to take a hard look back at the One’s 4.5K HD capability for just $1,000 more. And apparently, the CF models have already sold out, leaving just a limited supply of SSD RED One’s available.
There’s also the proviso that with this new pricing structure, no Epic system will receive a free Dragon System upgrade moving forward. But users can choose the upgrade for about $6,000 on order. And, users who have already purchased an Epic or Scarlet Brain on or after October 1st, will be compensated with an account credit to the tune of $1000 for Scarlet and $4000 for EPIC, which can be applied towards the purchase of RED accessories. Since the new prices are just on the brain units, the extras needed means that credit will come in real handy (although there’s no word if the store credits can be applied to the Dragon upgrade).
We have built an incredibly efficient factory in Irvine, California and over time learned how to make EPICs in quantity, lowered our assembly costs, found better suppliers and fully paid off our NRE.
In addition to the price drops, RED also announced support for ProRes support for Meizler, and is also offering huge 48GB REDMAG SSD drives. The new ProRes support annd mags means that users can record at 60fps to 2K resolution without sacrificing quality, and get up to 16 hours of recording time (at 780p 24fps).
Why is RED slashing prices? Well, it’s strategic, for one. Obviously the playing field is far more competitive now which is a natural push towards lowering prices through competition. It may explain why RED made the preliminary announcement on the eve of Sony’s big announcement of the F5 and F55 4K digital movie cameras. But Jannard also goes onto explain that with the development costs of the Epic platform completely recovered, and with RED’s own factory now built and operational, the ability to manufacture the cameras has moved beyond the hand built stage. This translates to a more streamlined process:
When we assembled the 1st EPIC camera in Stage 6 at RED Studios Hollywood it took our team 12 hours. It took two more days to de-bug. Today we can assemble an EPIC in 13 minutes and 95+% need no re-work after diagnostics and testing. Since our costs are now significantly lower we are re-pricing our cameras as of now.
Additionally, Jannard explained in his pre-announcement earlier this week that when RED began building the Epic, there was a worldwide component shortage which contributed to the hefty cost of developing and building their cameras. That shortage as abated and with more competition in parts fulfillment, the cost per unit has dropped as well.
So, in the end, everybody wins. And as a result, the cost to get into the game is drastically less expensive, if you can act quickly to take advantage of it. It’ll be interesting to see how RED’s competitors respond to the new structure, and if Jannard’s powerplay will force them all to follow suit.
REBLOGGED FROM DODDLENEWS