Report on Consolidated Financial Statement Schedule
                      and Consent of Independent Auditors


The Board of Directors
Pinnacle Systems, Inc.:

The audits  referred to in our report dated July 21, 1998,  included the related
consolidated  financial  statement schedule as of June 30, 1998, and for each of
the three years in the  three-year  period ended June 30, 1998,  included in the
registration  statement  on Form 10-K.  This  consolidated  financial  statement
schedule is the responsibility of the Company's  management.  Our responsibility
is to express an opinion on this consolidated financial statement schedule based
on our audits. In our opinion,  such consolidated  financial statement schedule,
when considered in relation to the basic consolidated financial statements taken
as a whole,  presents fairly in all material  respects the information set forth
therein.

We consent to incorporation  by reference in the  registration  statements (Nos.
33-89706, 333-25697,  333-16999, and 333-34759) on Form S-8 of Pinnacle Systems,
Inc. of our reports dated July 21, 1998,  relating to the  consolidated  balance
sheets of Pinnacle Systems,  Inc. and subsidiaries as of June 30, 1998 and 1997,
and the related  consolidated  statements of operations,  comprehensive  income,
shareholders'  equity,  and cash  flows for each of the years in the  three-year
period ended June 30, 1998,  and the related  schedule,  which reports appear in
this June 30, 1998, annual report on Form 10-K of Pinnacle Systems, Inc.

KPMG Peat Marwick LLP 

Mountain View, California
September 11, 1998