NAB 2011 Part 2: Blackmagic Design and the Video Value Proposition

In the interest of transparency, I want to start this post by saying that I've been a fan of Blackmagic Design for years, ever since the company launched its Decklink card in the U.S. market. Blackmagic Design reminds me a lot of what Hyundai has become in the automobile business--not only do you get an excellent product, but you get it at an excellent (and sometimes amazing) price. They carry on in the tradition of fellow Australian company Røde Microphones, which pioneered making high-quality microphones at very reasonable prices, and Atomos, which is selling amazing on-camera video recorders at a fraction of the price of most competitors.

At IBC 2009, Blackmagic announced that it had acquired DaVinci Systems, the maker of some of the most powerful and widely-used professional color correction and restoration systems for film and television. DaVinci Resolve was priced for high-end post-production facilities; an entry-level system was over $100,000 (U.S.) and could easily scale to several hundred thousand dollars as more processing nodes were added. Many industry observers wondered about how DaVinci's high-priced products would fit with Blackmagic's product line, most of which was priced at $1,000 or below. It didn't take long to find out the answer.

At NAB 2010, Blackmagic announced a $995 software-only version of DaVinci Resolve that's compatible with Apple's OSX and runs on most MacBook Pros, iMacs and Mac Pros. The software-only version is only a single processing node and doesn't include a control surface, but it's functionally identical to the product that had sold for $100,000 less than a year earlier. If you want a multi-node system, you can go with a $19,995 Linux version of the software and use it with a variety of third-party control surfaces, but if you want DaVinci's own control surface (which comes with a license for the Mac version), that's priced at $29,995. So, you could now pay less than $50,000 to get exactly the same functionality that you originally paid more than $100,000 for. And, since the Linux license supports multiple CPUs and GPUs, less than $50,000 also gets you the same functionality as those Resolve systems that cost hundreds of thousands of dollars.

Last August, Blackmagic acquired Echolab, the manufacturer of a highly-regarded line of production switchers that had fallen on hard times and declared bankruptcy. Blackmagic continued production of Echolab's two most recent designs, the ATEM 1 M/E with 10 inputs for $19,995, and the ATEM 2 M/E with 18 inputs for $51,995. At the time, I wondered if Blackmagic was going to apply the same cost-reducing philosophy to the ATEM switchers that it did to DaVinci Resolve. Again, I didn't have long to wait.

At this week's NAB, Blackmagic announced the next generation of ATEM:

• ATEM Television Studio, a six-input HDMI/HD-SDI 1 M/E switcher with two built-in media player framestores, two downstream keyers, software control panel, built-in H.264 real-time encoder,  built-in 10-channel multiviewer with HDMI and HD-SDI outputs, separate program HDMI and HD-SDI outputs, and an Ethernet interface, for...$995. That's not a misprint. $995.
  
  Roll a few of these concepts around in your head: A "personal switcher" that's small enough to hold in your hand but has four HDMI and four HD-SDI inputs, any six of which can be active at one time. A built-in hardware H.264 encoder. A built-in multiviewer that can use any off-the-shelf HDMI display. No need whatsoever for any PC slots. A software control panel that runs on Mac or PC. The ability to connect to hardware control surfaces and the Internet via Ethernet. $995. This is an order of magnitude better price/performance than anything comparable that I saw on the show floor.
  
• ATEM 1 M/E: Based on the specifications of the original ATEM 1 M/E, with 4 HDMI and 4 HD-SDI inputs, all of which are active, a separate analog input, frame resynchronizers on every input, HDMI, HD-SDI and analog program outputs, down-converted SDI output, a multiviewer, USB 3.0 and Ethernet interfaces, RS-422 control, and a PC and Mac-compatible software control panel. Plus, it includes stinger and DVE transitions, 6 keyers, built-in media players, etc. Blackmagic completely redesigned the electronics and firmware so that the switcher is small enough that you can hold it in your hand. And the price? $2,495. If you want the ATEM 1 M/E's original control surface, that sells for $4,995. The total is $7,490.
  
  The only feature that Blackmagic deleted from the new version of the ATEM 1 M/E is the second multiviewer, which most customers found redundant, and they added additional features, such as USB 3.0. Then, they cut the price by $12,505. If you can live with a software control panel, they cut the price by $17,500.
  
• ATEM 2 M/E: Take the ATEM 1 M/E and expand it to 16 simultaneous inputs, add a super source multi layering compositing engine, an additional multiviewer and an expanded software control panel. The resulting switcher is 3 RU high instead of 2 RU high for the ATEM 1 M/E, but you can still hold it in your hand. And, it's priced at $4,995. If you want the original ATEM 2 M/E control surface, it's priced at $14,995. The combination is $19,990, for an equivalent to the same switcher that sold for $51,995 at NAB last year.

These are, in many ways, revolutionary products, and the ATEM Television Studio will likely have the most impact of any of them. Consumers who had never even considered the possibility of doing live multicamera production and streaming it on the Internet will have an affordable way to do so. It has the potential of opening up entirely new applications, as do the other two models. All three models are going to put dramatic price pressure on Blackmagic's competitors, who are going to have to either drop their prices to remain competitive or add features to justify the big difference between their prices and Blackmagic's. Finally, we may see third-party control surfaces support the ATEM switchers at prices even lower than Blackmagic's, just as lower-cost color correction control surfaces are now available from a variety of vendors.

There's one final piece necessary if you want to do multicamera live production, especially in large churches, arenas and stadiums, and that's a way to extend the connections between the cameras and the switcher. To handle that, Blackmagic announced the ATEM Camera Converter, which accepts either HDMI or HD-SDI as input along with two microphone inputs. It's also got inputs for a talkback microphone and an output for talkback headphones. It then converts the signals to ride bidirectionally on an optical fiber pair, up to 147,000 ft. (27.8 miles or 44.8 kilometers). At the switcher end, another ATEM Camera Converter provides HDMI and HD-SDI outputs from the optical fiber signal, as well as talkback audio input and output for the director.

And the cost? $595. A pair is needed for each camera, for a total of $1,190. Consider that before now, you would have had to use professional cameras with multicore and optical fiber interfaces that cost tens of thousands of dollars. The ATEM Camera Converter enables you to use any good consumer or prosumer camcorder with an HDMI interface. The combination of the ATEM switchers and Camera Converters will make professional live field production affordable for schools, churches, community cable stations, small-market TV stations and Internet video producers of all kinds.

Just to touch on a few of Blackmagic's other NAB 2011 announcements:

• UltraStudio SDI, a cost-reduced version of the UltraStudio Pro with HD-SDI in, a HDMI 1.4 display output for monitoring, and a USB 3.0 interface, for $395.
• UltraStudio 3D, Blackmagic Design's first device with a Thunderbolt interface, with dual HD-SDI inputs, HDMI input, analog inputs on a breakout cable and HDMI monitor output for 2D ot 3D video capture and display, for $995.
• HyperDeck Studio, a dual-drive uncompressed HD recorder that uses the same 2.5" SSD drives as the new HyperDeck Shuttle I wrote about yesterday. It has HDMI and HD-SDI inputs and outputs, VTR-style deck controls, a jog shuttle dial, a small LCD monitor for time code, audio and video monitoring, and an Ethernet interface. SSD drives can be swapped while the device is running for effectively infinite recording time. The price is $995.
• H.264 Pro Recorder, a real-time H.264 encoder with component, HDMI and HD-SDI inputs, USB output and RS-422 control, for $495.
• And, as for DaVinci Resolve, Blackmagic introduced a new feature-reduced version called DaVinci Resolve 8 Lite, intended for users from whom even $995 is too much money right now. The price? Free.

My point in going into this detail isn't to provide an ad for Blackmagic (although I'm sure that the blog post reads like one), but to make it clear that video technologies that cost tens of thousands of dollars just a year ago, and hundreds of thousands of dollars a few years ago, are now available at a price so low that hobbyists can afford them. Just as making computer power available to consumers at a reasonable price sparked a revolution in the early 1980s, so making video and audio power available at a low price will spark an explosion in how media is produced and who produces it.

In the final part of this series, I'm going to take a look at some of NAB 2011's other interesting new products and trends, including the first Thunderbolt-compatible peripherals, POV cameras, the rise of ENG trucks in a backpack (or a cigarette case), and a brief comment on Apple's forthcoming Final Cut Pro X.

Blackmagic Design acquires Echolab

Last May 27th, I wrote a blog entry about the demise of Echolab, a well-respected manufacturer of video production switchers that had just run out of money and gone into liquidation. At that time, I wrote that Blackmagic Design might be a good buyer of Echolab's assets. For years, Blackmagic has driven down the prices of professional video capture cards, converters and routers. Last year, they acquired DaVinci, and this year, they flipped the professional color correction market on its head by offering a software-only DaVinci implementation for OS X for under $1,000 (US), and a full-bore, Linux-based implementation with dedicated control surface for literally hundreds of thousands of dollars less than the previous comparable DaVinci Resolve implementation.

By merging Blackmagic's and Echolab's know-how, the company could introduce powerful production switchers at lower prices than the competition. Today, Blackmagic announced that it acquired Echolab, and said that it will be displaying an updated version of Echolab's Atem switcher at IBC in Amsterdam next month. The entry-level Atem with one mix/effects bus and 10 inputs (8 SD/HD/3Gbs SDI and 2 HDMI) will be priced at $19,995 (US), and the two mix/effects bus model with 18 inputs (15 SD/HD/3Gbps SDI and 3 HDMI) will be priced at $51,995.

In the future, it's easy to imagine Echolab's technology brought down to the desktop level--perhaps a reengineered UltraStudio Pro or Multibridge with 1 M/E bus and 4 inputs for under $10,000. An iPad-based user interface wouldn't be out of the question, either.

In any event, this is great news for both Blackmagic Design and the engineers who worked on the Echolab platform, many of whom have been rehired by Blackmagic. Here's the official press release:

Blackmagic Design Acquires EchoLab

Boston, MA, USA - August 12, 2010 - Blackmagic Design today announced the acquisition of all assets of EchoLab Inc., one of the world’s leading designers and manufacturers of production switchers. EchoLab has over 35 years of experience in designing and building production switchers since 1974. This experience has culminated in the latest ATEM range of production switchers that include cutting edge technology for world leading features such as up conversion on inputs, multilayer SuperSource™ input, Stinger™ transitions, and built in multi-view monitoring, all in a familiar and affordable, fully digital M/E style design.

The ATEM production switchers will be demonstrated at the Blackmagic Design IBC 2010 booth #7.B25.

For the thousands of people who use production switchers, ATEM will be instantly familiar. It uses the conventional M/E style of design that’s easy, safe and fast to use on even the most critical live production. ATEM also combines powerful features such as SuperSource™, which is a separate multi layer engine with 4 x 2D picture in picture DVE’s and 4 x keyers that provide the same power as adding a whole extra multiple M/E switcher to the ATEM input!

SuperSource can be called at any time, and connects into the switcher as an input. Only SuperSource gives you the power of 4 built in layers of keying, plus 4 picture in picture DVE’s, while keeping ATEM an easy and fast to use conventional M/E style switcher.

For connecting to the widest range of cameras, decks and computers, the ATEM 1 M/E model includes 8 SDI inputs that operate at SD, HD and 3 Gb/s SDI, plus 2 switchable HDMI/Analog video inputs. ATEM includes multiple SDI outputs for program, preview, and aux. outputs, plus an HDMI output for the multi-view monitoring output. The ATEM 2 M/E model includes 15 x SD, HD and 3 Gb/s SDI inputs, as well as 3 x switchable HDMI/analog inputs for a total of 18 video inputs. ATEM 2 M/E also includes two multi-viewer outputs, clean feed, aux., program and preview SDI outputs. All ATEM switchers include serial ports for camera and VDCP servers as well as genlock.

ATEM switchers allow previewing of transitions before putting them on air. Users simply select “Preview Transition”, and the preview output of the switcher will show all the elements of the transition, so users can have the confidence to make fast multi layering decisions during live production.

When working with multiple cameras and sources, ATEM saves thousands of dollars on expensive monitoring because it includes a built in multi-viewer that lets you see multiple sources on a standard HDMI television or monitor as well as program and preview outputs. When sources are on-air, ATEM multi-viewer displays highlighted borders, and multi-viewer windows can be custom labeled.

ATEM also includes Stinger transitions for exciting and creative transitions. Stingers can be loaded into the switcher, and are then available on the 2 built in media players. ATEM can hold 32 stills and hundreds of frames of real time clips with alpha channels, so users have a wide range of graphics and clips to play back as animations, supers and stingers. Media players can be selected into any of the 4 built in upstream keyers or the transition block for ultimate flexibility and creativity.

For enhanced effects and transitions, ATEM includes a 2D DVE with borders and drop shadows that can be used with any upstream keyer or in the transition block. This means the built in DVE can be used for transitions, or it can be used for keying operations. Because the 4 built in upstream keyers are stacked, users have a wide range of layering options available, and completely independent of the SuperSource input.

When the 4 upstream keyers are combined with 5 SuperSource layers, the transition block keyer, the 2 down stream keyers and the stinger, even a 1 M/E ATEM switcher can have up to 13 keyers on screen simultaneously. This is the heart of the power of ATEM, and would require 3 M/E’s on other brand switchers.
This makes ATEM a tremendous value for money, while providing a compact and portable solution.

ATEM can be fully automated with macros, and also includes support for VDCP controlled servers and robotic cameras, all from the ATEM control panel. Customers can use the built in joy stick for controlling cameras, and then recall macros for incredibly powerful operation with very few people. No other switcher allows customers to produce powerful live productions with so few people!

“I have been using live production switchers since I was in school where we covered local theater, sports, racing and bands. I think it’s the most exciting way to do production because it’s all live and thousands of people are watching what you are doing! Production switchers need to be powerful while also being familiar and easy to operate. I think the ATEM switchers from EchoLab are the most exciting switchers I have ever seen, and it’s incredibly exciting to add these products and intellectual property to the Blackmagic Design family”, said Grant Petty, CEO of Blackmagic Design. “The ATEM switcher is a fantastic creative tool, and it includes powerful features not found in any other product. Since the acquisition, we have already dramatically expanded the engineering team working on ATEM. This fresh engineering team, which is a combination of new as well as experienced EchoLab staff, will allow us to move faster in adding new features to the ATEM product. It’s so exciting, I cannot sleep!”

ATEM Key Features
•    1 M/E model supports 10 video inputs, 2 M/E model supports 18 video inputs.
•    SD, HD and 3 Gb/s SDI, HDM and analog video inputs.
•    Full 10 bit HD operation for broadcast quality.
•    Built in multi-viewer for monitoring switcher sources, includes custom labeling and tally borders.
•    Built in SuperSource allows 4 picture in picture DVE’s and 4 keyers independent of the M/E.
•    2 Media Players are built in for animated graphics and stingers.
•    Stinger effects are independent of keyers.
•    Includes 4 upstream keyers with each including chroma, luma, linear and pattern keying built in.
•    Includes 2 downstream keyers, and independent fade to black.
•    Supports macros, and graphic and clip downloads via PC software.
•   Up to 13 keyers active at one time.

Availability and Price
ATEM is currently being retooled for production and will be available late 2010 for US$19,995 for the 10 input 1 M/E model, and US$51,995 for the 18 input 2 M/E model from Blackmagic Design resellers worldwide.

Press Photography
Product photos of the ATEM production switchers can be obtained by emailing Terry Frechette at terryf@blackmagic-design.com. Press images will also be posted to www.blackmagic-design.com/press/images/ <http://www.blackmagic-design.com/press/images/> early next week.

About Blackmagic Design
Blackmagic Design creates the world’s highest quality video editing products, color correctors, video converters, routers, waveform monitors, live production switchers and film restoration software for the feature film, post-production and television broadcast industries. Blackmagic Design’s DeckLink capture cards launched a revolution in the television industry, while the company’s DaVinci Emmy™ award winning color correction products have dominated the television and film industry since 1984 and continue ground breaking innovations including stereoscopic 3D and 4K workflows. Founded by world leading post production editors and engineers, Blackmagic Design has offices in the USA, UK, Japan, Singapore, and Australia. For more information, please check www.blackmagic-design.com <http://www.blackmagic-design.com> .

Echolab shuts down, will liquidate; is there an opportunity for Blackmagic Design?

Last week, Echolab, a well-regarded manufacturer of video production switchers, closed its doors and gave notice that the company will be liquidated. All the company's employees have been laid off. Echolab focused on the midrange switcher market--higher-end than the industrial-style switchers from Panasonic and Broadcast Pix, but below the high-end from companies like Ross and Grass Valley.

Echolab's investors are looking for companies to buy its technology and inventory; in a liquidation, all, part or none of the company's assets may be sold. Blackmagic Design comes to mind as a potential buyer of Echolab's technology. Blackmagic has been a leader at driving down the cost of video production technology, and they're revitalizing DaVinci's color correction business. Production switchers are generally far too expensive relative to the price drops for most other video production and post-production equipment, and Blackmagic already makes an inexpensive, well-regarded line of routing switchers. Echolab might have technology and software that they could use to bring the same kind of cost-effective products to the production switcher market.

And yes, I can hear some of you saying that NewTek's Tricaster already fills the low-cost space, but there's plenty of room for competition. NewTek's control surfaces leave a lot to be desired, and by the time you get to their entry-level HD-compatible model, the TCXD300, you're talking almost $15,000, plus another almost $2,000 for a physical control surface. That's pretty close to the price of Grass Valley's Indigo AV switcher/audio mixer.

In any event, Blackmagic may already have all the technology it needs to produce a production switcher, or it may have evaluated the market and decided that it's not big enough to warrant the effort. However, an under-$10,000 HD production switcher from Blackmagic would get a lot of people very excited. Whether or not they pursue Echolab, it could be in the cards.