Nikon Snaps Up Niche Cinema Camera Maker RED

In a bold move to expand its reach in the professional digital cinema camera market, Japanese imaging giant Nikon has announced its acquisition of RED Digital Camera, the company founded by Jim Jannard, creator of Oakley. The deal will see RED become a wholly owned subsidiary of Nikon, bringing together Nikon's rich heritage in professional and consumer imaging with RED's innovative prowess in the cinema camera category.

RED, known for its legendary products like the One 4K and V-Raptor X, has garnered a reputation for excellence that transcends the cinema space. Even big-time YouTubers like MKBHD are known to use RED's cameras, which have been used to shoot many movies in the Marvel Cinematic Universe, including the recent Guardians Of Galaxy Vol. 3 and Captain Marvel. RED's cameras have also been the choice for acclaimed shows like Squid Games, The Queen's Gambit, and Peaky Blinders.

For Nikon, this acquisition is a critical move as its core market of consumer cameras faces increasing competition from smartphones. Meanwhile, its traditional pro cameras have fallen behind offerings from Sony, which has become the market leader thanks to its unique silicon and image sensor technology. Nikon's semiconductor business has also been struggling due to the rise of ASML and its EUV technology, which is used by every major fab, including TSMC, Intel, and Samsung.

Jarred Land, the president of RED, expressed his enthusiasm for the acquisition, stating, "This acquisition marks a significant milestone for Nikon, melding its rich heritage in professional and consumer imaging with RED's innovative prowess. Together, Nikon and RED are poised to redefine the professional digital cinema camera market, promising an exciting future of product development that will continue to push the boundaries of what is possible in film and video production."

Interestingly, this deal comes on the heels of a dismissed lawsuit filed by RED against Nikon in 2022 for allegedly infringing on its video compression patents in a firmware update for Nikon's Z9 camera. Nikon responded by questioning the legitimacy of RED's patents, and the case was ultimately dismissed in 2023.

RED, founded in 2005 with 220 employees based in its Foothill Ranch, California headquarters, has had its share of struggles in the past. The company's ill-fated move into the smartphone space in 2018 with the RED Hydrogen One was met with disappointment, as its unique holographic display and support for modular add-ons failed to capture the imagination of the market, leading to its discontinuation.