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There are reports that iconic cinema camera manufacturer ARRI may be for sale. Changes in the industry post-pandemic have hit the company hard. Hollywood for theatre productions have slowed down over the last few years. Streaming services are working hard to reduce production costs, which have lead to a significant drop in sales and cashflow for the privately owned company.
ARRI has begun selling off non-core business divisions including their lighting division Claypaky. They are looking to sell more of their divisions. Could they sell their ARRI Media division?
When I saw the news about the potential sale, I immediately thought of Canon acquiring the company to finally become an “A-Camera” manufacturer. They have tried in the past with cameras like the Cinema EOS C700, but those plans haven't gone well. Canon does very well in the documentary and lower budget productions with cameras like the Cinema EOS C500 Mark II, C300 Mark II, C80 and C400.
Canon has also been very successful with the EOS 5 series for video production. This segment is extremely competative with Sony being a massive player in cinema.
Canon Buying ARRI Would Be Fun
Full Disclosure: I am not a cinema person, and I don't know the technology behind big production cameras from ARRI, Sony or Canon. However, I think there's a business case for Canon to at least consider and look at ARRI financials and how the brand could fit into Canon's ecosystem.
Canon has been unable to get their cameras into big budget productions; this has been dominated by ARRI with systems like the Alexa series. To get production comapnies to change ecosystems is probably a big ask. A lot of us want to use what we know, at every level. ARRI's support is geared towards this segment of the industry. Building out service and support is a big undertaking.
During the pandemic Canon scaled back their service centers, including their professional center in Burbank, California.
ARRI Has No Comment
It shouldn't come as a surprise that ARRI isn't to comment on speculation.
As a matter of long-standing policy, ARRI does not comment on market speculation or rumors. Like others in the industry, ARRI is currently undergoing a transformation process in which we are structurally adapting to the lasting changes in the demands of our market. In doing so, we are building on our technological expertise, our strong brand, and our long-standing commitment to our customers and partners. As we are in the midst of this transformational phase, please understand that we do not wish to comment further on this matter publicly.
YM Cinema
Nikon Bought RED
Last year, Nikon purchased RED for $85 million, which definitely seemed low for the brand. However, Nikon has no legacy in video production and I'm not sure how Nikon could possibly make inroads in the professional cinema production industry.
Last year Nikon sold 5.1% of their business to the god awful EssilorLuxottica. The sale was more related to Nikon's eyeglass lens business. It is still quite telling that Nikon would sell a stake in their entire business.
Canon Would Immediately Become a Huge Player
I love watching companies go at each other, and this would make the Canon vs Sony fun times even better. Sony is crushing Canon in cinema with lines like the Venice series. Though, Canon maintains their 50% (give or take) marketshare in the ILC market.
Not only would Canon be buying an iconic market leader, they'd also get some amazing sensor technology. Canon is more than capable of making high-end image sensors, and probably for a lot less money than ARRI spends.
Canon has massive R&D capabilities which could push ARRI's sensor and camera tech forward at a quicker pace. As I've said before, Canon is a manufacturing company and would have no problem taking over ARRI's manufacturing.
Canon is always to find ways to increase margins across their camera and lens systems, and professional cinema cameras would be a great way to increase margins, especially with Canon's manufacturing technology and expertise.
Canon would also acquire some of the best cinema lenses on the market. Canon's Cine lenses are fantastic by most accounts, but ARRI lenses are regarded as the best on the market for certain types of productions, especially if sharpness is the goal.
As pointed out by YM Cinema, it would also give Canon immediate access to industry partnerships and brand loyalty. ARRI also has a global presence, and Canon is looking to expand exponentially in markets other than the United States. China and India will become Canon's biggest markets in the coming years.
Keep the ARRI Brand
If Canon did acquire ARRI, I would think keeping the “ARRI” brand would be the best way to go. It could easily be brought under the Cinema EOS umbrella as far as the business structure.
Sure, they can stick a Cinema EOS logo somewhere, but nothing more than that in my opinion.
Conclusion
I'd be surprised if Canon hasn't at least knocked on the door to look at ARRI's business and financials. Canon is a conservative company when it comes to acquisitions, but they seem to make a lot of good decisions in that regard.
It sure would be a lot of fun to see what Canon could do with an ARRI acquisition. It'd also be a lot better than another private equity company getting involved in the industry.
The speculation is fun.
Zeiss and Leica don't have the funds to acquire ARRI.
Of course, Canon could buy Zeiss and Leica as well...