As Canadian broadcasters limit post-production spending and observers predict software developers will siphon dollars from hardware manufacturers, Ampex Systems Corporation of Redwood, Calif. has closed its direct sales offices in Canada, parts of Europe and Asia.

But Ampex products and services are still available in Canada out of a base in Mississauga, Ont. since Ampex Systems made it possible for some of Ampex Canada’s employees to form Major Technologies. Ampex Media International will continue to distribute Ampex tapes in Canada.

The restructured Ampex Canada, Major Technologies, was incorporated Jan. 31 and will run under president and general manager Jean-Louis Major, formerly president of Ampex Canada. His partners are vice-president of finance and operations Gary Brocklesby and Ken Stelmakowich, vice-president of marketing. Major says five of the employees left as a result of the restructuring, including Wally Bebenek, former vice-president and sales manager at Ampex Canada. Major adds, however, that sales representatives will operate out of Vancouver and Montreal and the new company will continue service and support to Ampex’s Canadian customers.

Along with having exclusive rights to sell Ampex hardware, Major Technologies will serve as a distributor of equipment made by other, as yet unspecified, suppliers.

A press release from Ampex Systems says the sales offices were targeted for closure as part of the company’s ‘ongoing cost reduction program.’

‘Because (Ampex’s) product line is narrower than it used to be,’ says Major, ‘it became harder and harder for us to meet our expense-to-sales target. So it made sense to expand our product lines versus only what’s offered by Ampex.’

Without access to the sizable consumer products base established by such rivals as Sony Corporation, Ampex, like many other companies, was hit hard by broadcasters’ reluctance to make major equipment investments.

According to Bob Campbell, a former Ampex employee and one of the founders of Vancouver’s Gastown Post and Transfer, broadcasters are biding their time: ‘They’re waiting to see what’s going to happen (with hdtv) or whatever system comes down the line.’

Meantime, he says, Ampex must redirect its primary sales focus from broadcasters back to the post-production industry where such ‘spectacular’ products as the dct system have been very well-received, including at Gastown. Campbell also says Ampex does very well with sales of its data recorder technology, which he expects will be a continuing profit center for the company.

Richard Cormier, president of Postproductions Buzz in Montreal, says delegates to nab in March will hear much more talk about post-production software applications as opposed to straight-up talk of equipment. ‘You’ll see, big suppliers like Abekas will be selling software, and all the traditional manufacturers will be talking programming. Even with Silicon Graphics – you cannot have a more proprietary form of equipment than the sgi workstation.’ (The sgi platform is used to run many of the new software post-production programs.)

An informal Playback survey of post-production houses which own Ampex equipment (especially the new-ish release, dct), reveals that, for the most part, Ampex customers are content with the shift to Major Technologies. While one Toronto post executive suggested it is ‘significant’ that Ampex no longer runs a direct sales office in Canada, another regretted the departure of the well-respected Bebenek. A third said so far, Major Technologies is providing adequate service and support. Others in the post business were indifferent.

‘It’s a free country, people can do business as they wish,’ says Cormier. ‘Who cares? It’s yet another distributor or supplier, and if it’s better for the buyer, then that’s great.’

With files from Leo Rice-Barker in Montreal.