Reason sound doesn't sell is not true

[festeringheap]

So you cite financials from 5-6 years ago?? Lol

Those financials were current when I posted that in September 2013.

Venture capital funds generally don't buy into non-profitable businesses. Also, Reason (and its related pay-for ecosystem) is Propellerhead's cash cow. Their focus is not going to suddenly turn away from that. Relax.

Propellerheads wouldn't sell out unless they had money issues. Their focus has changed to an iPad app.

For my next NostraDAWmus prediction, I expect the founders to leave the company in 2 years. They will get sick of having their arms twisted by the fund managers.

From your financials, looks like they took a hit for future expansion (Rack Extensions). Since then, they have made a modest profit. All the bills have been paid. They are not bleeding money. And they haven't yet started on a mobile Reason app, which should do quite well.

Propellerheads wouldn't sell out unless they had money issues? Baloney. Lots of people sell companies - profitable or unprofiltable. Likely the founders are getting on in age, and the founders want to cash in after almost 20 years. Obviously no one knows the details, but generally when a VC (Verdane) gets control of a company, they will put in their people to run the show, so yeah, your NostraDAWmus prediction will likely be right.

[Frantz]

Propellerheads wouldn't sell out unless they had money issues? Baloney. Lots of people sell companies - profitable or unprofiltable. Likely the founders are getting on in age, and the founders want to cash in after almost 20 years.

The Props founders strike me as the ultimate control freaks insisting on doing everything differently despite what their users may want. In the Reason 4 days, refusing to support MIDI out. More recently, inventing their own plugin format instead of supporting the existing ones. The last thing they would want is a bunch of bean counters in control of their products. I think they would do this only if they were financial pressures.

[chk071]

Oh, so you're one of the hopeless folks, who constantly asked for VST support, thus completely missing the whole concept of Reason, and how bad a business decision it would be to start supporting VST now, too?

[Frantz]

Oh, so you're one of the hopeless folks, who constantly asked for VST support, thus completely missing the whole concept of Reason, and how bad a business decision it would be to start supporting VST now, too?

No, I was one of the hopeless folks who bought it around version 4 (I think) without realizing it didn't support MIDI Out. I quickly get fed up with its bizarre limitations and moved on.

[chk071]

Good. But why bother that it doesn't support the existing plugin formats then?

[Frantz]

Good. But why bother that it doesn't support the existing plugin formats then?

I am not bothered by their wacky decisions. I am tooting my own horn that my early prediction came true and I am making a new prediction about the founders leaving.

Being NostraDAWmus is not glamorous work but someone's got to do it.

[liquidsound]

I am not bothered by their wacky decisions. I am tooting my own horn that my early prediction came true and I am making a new prediction about the founders leaving.

That could be a good thing actually. We may than see a possibility for VST support or NEVER.

[ghettosynth]

Venture capital funds generally don't buy into non-profitable businesses.

LOL! Who told you that?

Venture capital often buys into non-profitable businesses where they see potential for huge growth. Almost all medical startups run at a loss on investment capital for years before exit.

I'm no expert on this, but, what you're describing is more traditional forms of business finance, not venture capital.

[LawrenceF]

That was my understanding as well, that venture capitalism is often more risky which may in turn allow some favorable terms for the people financing because of the risk. Otherwise people that need money for a business would just go to a bank and get a conventional business loan.

But I'm no expert either.

[ghettosynth]

Propellerheads wouldn't sell out unless they had money issues. Their focus has changed to an iPad app.

Indeed. I was surprised to read that this was happening TBH. Props always seemed like the kind of company that wants to do things their own way.

For my next NostraDAWmus prediction, I expect the founders to leave the company in 2 years. They will get sick of having their arms twisted by the fund managers.

Especially when it is explicitly stated that the investors intend to be active partners.

[Jace-BeOS]

That was my understanding as well, that venture capitalism is often more risky which may in turn allow some favorable terms for the people financing because of the risk. Otherwise people that need money for a business would just go to a bank and get a conventional business loan.

But I'm no expert either.

Especially when there's a chance they can feast on the corpse if the business fails...

But I'm no expert either.

[EnochLight]

So you cite financials from 5-6 years ago?? Lol

Those financials were current when I posted that in September 2013.

Again, not sure how financials from several years ago are even relevant... today.

Venture capital funds generally don't buy into non-profitable businesses. Also, Reason (and its related pay-for ecosystem) is Propellerhead's cash cow. Their focus is not going to suddenly turn away from that. Relax.

Propellerheads wouldn't sell out unless they had money issues. Their focus has changed to an iPad app.

For my next NostraDAWmus prediction, I expect the founders to leave the company in 2 years. They will get sick of having their arms twisted by the fund managers.

The founders are approaching retirement age. They most certainly would sell their life's work if it meant they could cash-in for a half-way decent amount. One of the founders technically did leave the company years ago (though he remains on the board). I do look forward to more of your NostraDAWmus predictions, though.

[keyman_sam]

I hope the props NEVER implement VST in Reason. Yeah, i'm in that category. Bite me.

Reason is rock-solid-stable for one reason (ahem) - NO FRIGGIN VSTs. If you take away stabilty from Reason you have one less incentive to use it. REs solve the problem elegantly. Buy them or go elsewhere.

What I'd LOVE to see is bi-directional midi AND audio so you CAN patch up your vsts from your DAW and use Reason like an external hardware rack. The props won't lose anything by doing this (as they would if they implemented VST). They already have ReWire so why they haven't made it bi-directional yet is completely beyond me.

[ghettosynth]

I hope the props NEVER implement VST in Reason. Yeah, i'm in that category. Bite me.

Reason is rock-solid-stable for one reason (ahem) - NO FRIGGIN VSTs. If you take away stabilty from Reason you have one less incentive to use it. REs solve the problem elegantly. Buy them or go elsewhere.

What I'd LOVE to see is bi-directional midi AND audio so you CAN patch up your vsts from your DAW and use Reason like an external hardware rack. The props won't lose anything by doing this (as they would if they implemented VST). They already have ReWire so why they haven't made it bi-directional yet is completely beyond me.

It's a pain to setup, but, the best way to do this is to use Reaper as your I/O and then tell props to use the Rearoute driver. Combine this with a virtual midi port and you have your own sloppy version of bi-directional rewire.

[pdxindy]

I hope the props NEVER implement VST in Reason. Yeah, i'm in that category. Bite me.

Reason is rock-solid-stable for one reason (ahem) - NO FRIGGIN VSTs. If you take away stabilty from Reason you have one less incentive to use it. REs solve the problem elegantly. Buy them or go elsewhere.

What I'd LOVE to see is bi-directional midi AND audio so you CAN patch up your vsts from your DAW and use Reason like an external hardware rack. The props won't lose anything by doing this (as they would if they implemented VST). They already have ReWire so why they haven't made it bi-directional yet is completely beyond me.

When they add VST support you are welcome to not use them