Nikon buys Red

Davide DB · March 10

I see a lot of conspiracy on the net and read a lot of speculation about this news that has indeed left everyone stunned.

I add my own...

I see nothing mysterious in this. Nikon just before the move to mirroless was almost given up for dead (it had just lost a very important piece of its business in lithography of electronic components). Now it's out of the picture, but I don't think its Z line has changed things all that much.

So in a very high-tech market with a very small (declining) number of units sold, it is increasingly difficult to find the funds for the necessary technological investments. Sony has a diversified business and can rely on revenues and technologies from so many other markets.

Red in my opinion did not fare any better. It remained a mystery to me how such a small company could make a living in this industry. Where was it getting the money for technology investments. By the way, in Europe Red was getting progressively gnawed off the market by Arri and Sony competition is hard.

So big fish eat little fish. It's a win-win deal for both of them even while keeping their respective brands separate.

The exchange of technologies will be there. Even without fantasy Red by Nikon stickers or the like.

Nikon acquires several patents and technology (raw and global shutter) and enters the cinema market.

Red accesses Nikon's technology and more of its production capacity.

If in a few years we essentially have a Nikon camera inside a Red cube marked Red no one will ever know. Then of course there are a whole series of probable ripple effects in the patent war and on trade agreements with other brands.