By buying camera manufacturer RED, Nikon wants to catch up in video

A giant swallows a dwarf: Nikon has issued a press release announcing the acquisition of RED Digital Cinema. Known as RED, this Californian video expert company is renowned in the world of cinema. Founded in 2005, it became known for its extensive software and electronics know-how. Its cameras were among the first to film in 4K then 8K thanks to very large sensors, while its algorithms and compression standards are among the most effective in the segment.

Faced with the giants Canon, Nikon and Panasonic, Nikon has never managed to do well in the field of video production. First accused by RED of violating its patents, Nikon patched things up with the company before buying it back. An acquisition which could allow it to have influence (finally) in a very dynamic sector: video.

Goliath swallows David

We must first emphasize the difference in size between the two protagonists. Nikon is best known for its cameras. However, its 18,790 employees at the end of March 2023 generated most of the turnover in many other sectors (optics, measuring instruments, industrial robots, machine tools for the production of semiconductors… the list goes on )

Faced with this, RED Digital Cinema is an SME with just over two hundred employees which sells a small volume of cameras – admittedly very expensive – and occupies a niche market. Nevertheless, in its field, RED Digital Cinema is a reference and its aura is great – so much so that the company had started to develop smartphones dedicated to video.

Nikon and the video: it’s complicated

While all the leading video companies – Canon, Sony and Panasonic – have models dedicated to vlogging and have sold camera bodies for video in spades, Nikon is a bit of a lame duck in the segment. From the shift towards SLR video, Canon took the lead with its 5D Mark II, Mark III and finally its C cameras. At Panasonic, the GH then S guaranteed the company a place of choice in light video productions.

As for Sony, which was already a giant in broadcast video production and then camcorders, it took advantage of the slowness of Canon and Nikon in designing hybrids to carve out a place in the sun.

In this whole story, which saw photo hybrids transform into video war machines, Nikon managed to be the first to launch a SLR with video (D90, APS-C model)… before failing everywhere else. Particularly with its KeyMission action cameras, which left as quickly as they came.

The mass video market is occupied by smartphones, closely followed by hybrids from the three champion brands. In these areas, the mass seems to be said. However, on the professional video side, whether for cinema, documentary, broadcast, etc., many projects are underway. For example, the generalization of 8K or higher definitions, or optical developments.

It remains to be seen how the Japanese titan will take advantage of the American company’s technologies, notably Redcode (a proprietary video RAW format). Like any acquisition, it will take time to feel the fruits. In any case, this acquisition demonstrates a desire to accelerate a brand which, in the field of video, really needed it.