<PAGE>   1




                                                  ------------------------------
                                                             OMB APPROVAL
                                                  ------------------------------
                                                  OMB NUMBER:          3235-0145
                                                  Expires:     December 31, 1997
                                                  Estimated average burden
                                                  hours per response . . . 14.90
                                                  ------------------------------

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C.  20549

                                  SCHEDULE 13G
                                 (RULE 13d-102)

            INFORMATION STATEMENT PURSUANT TO RULES 13d-1 AND 13d-2
                   UNDER THE SECURITIES EXCHANGE ACT OF 1934
                         (AMENDMENT NO.   2   )*
                                       -------



                              AVID TECHNOLOGY INC.
- --------------------------------------------------------------------------------
                                (Name of Issuer)

                    Common Stock, par value $0.01 per share
- --------------------------------------------------------------------------------
                        (Title of Class of Securities)

                                   05367P100         
                               ------------------                               
                                 (CUSIP Number)



Check the following box if a fee is being paid with this statement [X].  (A fee
is not required only if the filing person: (1) has a previous statement on file
reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.) 
(See Rule 13d-7).

*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities,
and for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).



                              Page 1 of 24 pages

<PAGE>   2

CUSIP No.    05367P100          13G         Page   2   of   24   Pages
             ---------                            ---      ----


<TABLE>
<S>                                                                                                                  <C>
- --------------------------------------------------------------------------------------------------------------------------------
 1     NAME OF REPORTING PERSON
       S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

               B.A.T Industries p.l.c.

- --------------------------------------------------------------------------------------------------------------------------------
 2     CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*                                                             (a) [ ]

                                                                                                                     (b) [ ]

- --------------------------------------------------------------------------------------------------------------------------------
 3     SEC USE ONLY


- --------------------------------------------------------------------------------------------------------------------------------
 4     CITIZENSHIP OR PLACE OF ORGANIZATION

               England

- --------------------------------------------------------------------------------------------------------------------------------
                    5     SOLE VOTING POWER
               
                              -0-

   NUMBER OF      --------------------------------------------------------------------------------------------------------------
    SHARES          6     SHARED VOTING POWER     
 BENEFICIALLY                                     
   OWNED BY                   1,300,233       
     EACH      
   REPORTING      --------------------------------------------------------------------------------------------------------------
    PERSON          7     SOLE DISPOSITIVE POWER   
     WITH      
                              -0-             
                 ---------------------------------------------------------------------------------------------------------------
                    8     SHARED DISPOSITIVE POWER 
                                                  
                              1,300,233       

- --------------------------------------------------------------------------------------------------------------------------------
 9   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
             1,300,233
   
- --------------------------------------------------------------------------------------------------------------------------------
10   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*                                               [ ]
   
             N.A.
   
   
- --------------------------------------------------------------------------------------------------------------------------------
11   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
   
             6.11%
   
- --------------------------------------------------------------------------------------------------------------------------------
12   TYPE OF REPORTING PERSON*
   
             HC

- --------------------------------------------------------------------------------------------------------------------------------

</TABLE>

                     *SEE INSTRUCTIONS BEFORE FILLING OUT!



                              Page 2 of 24 pages


<PAGE>   3
CUSIP No.    05367P100               13G           Page   3   of   24   Pages
             ---------                                   ---      ----


<TABLE>                                                              
<S>                                                                                                            <C>
- ------------------------------------------------------------------------------------------------------------------------------
 1    NAME OF REPORTING PERSON
      S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

               Farmers Group, Inc.

- ------------------------------------------------------------------------------------------------------------------------------
 2    CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*                                                         (a)  [ ]

                                                                                                                (b)  [ ]

- ------------------------------------------------------------------------------------------------------------------------------
 3    SEC USE ONLY


- ------------------------------------------------------------------------------------------------------------------------------
 4    CITIZENSHIP OR PLACE OF ORGANIZATION


               Nevada
- -----------------------------------------------------------------------------------------------------------------------------
                   5     SOLE VOTING POWER
                
                               -0-

                  -----------------------------------------------------------------------------------------------------------
                   6     SHARED VOTING POWER       
  NUMBER OF                                        
    SHARES                     1,300,233         
 BENEFICIALLY  
  OWNED BY        -----------------------------------------------------------------------------------------------------------      
    EACH           7     SOLE DISPOSITIVE POWER    
  REPORTING    
   PERSON                      -0-               
    WITH       
                  -----------------------------------------------------------------------------------------------------------
                   8     SHARED DISPOSITIVE POWER  

                               1,300,233         

- -----------------------------------------------------------------------------------------------------------------------------
 9    AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

               1,300,233

- -----------------------------------------------------------------------------------------------------------------------------
10    CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*                                          [ ]

               N.A.

- -----------------------------------------------------------------------------------------------------------------------------
11    PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

               6.11%

- -----------------------------------------------------------------------------------------------------------------------------
12    TYPE OF REPORTING PERSON*

               IC

- -----------------------------------------------------------------------------------------------------------------------------

</TABLE>

                     *SEE INSTRUCTIONS BEFORE FILLING OUT!




                              Page 3 of 24 pages

<PAGE>   4



<TABLE>
<S>             <C>
Item 1 (a).     Name of Issuer:
- ----------                     
                
                AVID TECHNOLOGY INC.
                
Item 1 (b).     Address of Issuer's Principal Executive Office:
- ----------                                                     
                
                Metropolitan Technology Park
                One Park West
                Tewksbury, MA 01876
                
Item 2(a).      Name of Person Filing:
- ---------                             
                
                B.A.T Industries p.l.c., an English corporation ("B.A.T"),
                and Farmers Group, Inc. ("Farmers"), a Nevada corporation;
                Farmers is the beneficial owner of the Issuer's securities
                identified in Item 2(d) below through various subsidiaries
                of Farmers, by insurance exchanges for which Farmers acts
                as attorney-in-fact or by benefit plans for employees of
                Farmers and its subsidiaries for which Farmers has
                investment discretion.  No such entity beneficially owns
                in excess of 5% of the class of shares in respect of which
                this report is being made; and B.A.T may be deemed to be
                the indirect beneficial owner of such securities by
                indirectly owning 100% of the issued and outstanding
                shares of Farmers through B.A.T's wholly-owned subsidiary,
                South Western Nominees Limited.  The filing of this
                statement by B.A.T shall not be construed as an admission
                that B.A.T is, for the purposes of Section 13(d) or 13(g)
                of the Act or under the laws or regulations of the United
                Kingdom, the beneficial owner of any securities covered by
                this statement.
                
Item 2(b).      Address of Principal Business Office or, if none, Residence:
- ---------                                                                   
                
                B.A.T Industries p.l.c.
                Windsor House
                50 Victoria Street
                London SW1H ONL
                England
                
                Farmers Group, Inc.
                4680 Wilshire Boulevard
                Los Angeles, California 90010
                USA
                
Item 2(c).      Citizenship:
- ---------                   
                
                B.A.T Industries p.l.c.   - England
                Farmers Group, Inc.       - Nevada
                



</TABLE>


                              Page 4 of 24 pages

<PAGE>   5

<TABLE>
<S>             <C>
Item 2(d).       Title of Class of Securities:
- ---------                                     
                 
                 Common stock, par value $0.01 per share
                 
Item 2(e).       CUSIP Number:
- ---------                     
                 
                 05367P100
                 
Item 3.          This statement is filed pursuant to Rule13d-1(b) by B.A.T, 
- ------           a Parent Holding Company, in accordance with Rule 13d-1(b)(ii)
                 (G), and by Farmers Group, Inc., an Insurance Company (as 
                 defined in Section 3(a)(19) of the Act) incorporated under the
                 laws of Nevada.       
                 
Item 4.          Ownership:
- ------                     
                 
                 (a)  Amount Beneficially Owned:
                      
                              1,300,233
                      
                      The shares being reported were acquired by various
                      subsidiaries of Farmers Group, Inc. by insurance exchanges
                      for which Farmers Group, Inc., acts as attorney-in-fact or
                      by benefit plans for employees of Farmers Group, Inc. and
                      its subsidiaries for which Farmers Group, Inc. has
                      investment discretion.  No such entity beneficially owns
                      in excess of 5% of the class of shares in respect of which
                      this report is being made.
                      
                 (b)  Percent of Class:
                      
                              6.11%
                      
                 (c)  Number of shares as to which person has:
                      
                      (i)     Sole voting power:                -0-
                      (ii)    Shared voting power:              1,300,233
                      (iii)   Sole disposition power:           -0-
                      (iv)    Shared disposition power:         1,300,233
                      
Item 5.         Ownership of Five Percent or Less of a Class:
- ------                                                       
                
                      Not Applicable.
                




</TABLE>

                              Page 5 of 24 pages

<PAGE>   6



<TABLE>
<S>             <C>
Item 6.         Ownership of More than Five Percent on Behalf of Another Person:
- ------                                                                          
                
                        Not Applicable.
                
Item 7.         Identification and Classification of the Subsidiary Which 
- ------          Acquired the Security Being Reported on by the Parent Holding 
                Company:
                
                        See Exhibit I.
                
Item 8.         Identification and Classification of Members of the Group:
- ------                                                                    
                
                        Not Applicable.
                
Item 9.         Notice of Dissolution of the Group:
- ------                                             
                
                        Not Applicable.
                
Item 10.        Certification:
- -------                       
                
                        By signing below I certify that, to the best of my
                        knowledge and belief, the securities referred to above
                        were acquired in the ordinary course of business and
                        were not acquired for the purpose of and do not have the
                        effect of changing or influencing the control of the
                        issuer of such securities and were not acquired in
                        connection with or as a participant in any transaction
                        having such purpose or effect.
                        
                



</TABLE>

                              Page 6 of 24 pages

<PAGE>   7


                                  SIGNATURES


         After reasonable inquiry and to the best of my knowledge and belief, 
I certify that the information set forth in this statement is true, complete 
and correct.


                                     B.A.T INDUSTRIES p.l.c.


Dated February 5, 1997               By:  /s/ Anthony Robert Holliman 
                                         ------------------------------------
                                         Name:  Anthony Robert Holliman 
                                         Title: Assistant Corporate Secretary





                              Page 7 of 24 pages

<PAGE>   8


                                  SIGNATURES


        After reasonable inquiry and to the best of my knowledge and belief, 
I certify that the information set forth in this statement is true, complete 
and correct.


                                        FARMERS GROUP, INC.


Dated February 5, 1997                  By:  /s/ Alan Porter 
                                           ----------------------------
                                            Name: Alan Porter
                                            Title:  Corporate Secretary





                              Page 8 of 24 pages

<PAGE>   9


                                Exhibit Index



<TABLE>
<CAPTION>
Exhibit     Description                                             Page Number
- -------     -----------                                             -----------
   <S>      <C>                                                         <C>
   I        Identification and Classification of Subsidiaries           10 
                                                                           
   II       Amendment, dated February 6, 1996, to Schedule              11 
            13G, dated February 9, 1994                                    
                                                                           
   III      Schedule 13G, dated February 9, 1994                        17 
            
            
            

</TABLE>


                              Page 9 of 24 pages





<PAGE>   1


                         Exhibit I to Amendment No. 2


This statement is filed pursuant to Rule 13d-1(b) by B.A.T Industries p.l.c., a
Parent Holding Company, in accordance with Rule 13d-1(b)(1)(ii)(G), with
respect to securities held by Farmers Group, Inc., an Insurance Company (as
defined in Section 3(a)(19) of the Act) incorporated under the laws of Nevada.





                              Page 10 of 24 pages





<PAGE>   1


                                                  ------------------------------
                                                            OMB APPROVAL
                                                  ------------------------------
                                                  OMB NUMBER:          3235-0145
                                                  Expires:     December 31, 1997
                                                  Estimated average burden
                                                  hours per response . . . 14.90
                                                  ------------------------------

                         Exhibit II to Amendment No. 2

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C.  20549

                                  SCHEDULE 13G
                                 (RULE 13d-102)

            INFORMATION STATEMENT PURSUANT TO RULES 13d-1 AND 13d-2
                   UNDER THE SECURITIES EXCHANGE ACT OF 1934
                         (AMENDMENT NO.    1     )*
                                        -------



                              AVID TECHNOLOGY INC.
- --------------------------------------------------------------------------------
                               (Name of Issuer)

                   Common Stock, par value $0.01 per share
- --------------------------------------------------------------------------------
                         (Title of Class of Securities)

                                  05367P100
                             ---------------------
                                (CUSIP Number)



Check the following box if a fee is being paid with this statement [ ].  (A fee
is not required only if the filing person: (1) has a previous statement on file
reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.) 
(See Rule 13d-7).

*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities,
and for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not
 be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).





                              Page 11 of 24 pages

<PAGE>   2


CUSIP No.    05367P100               13G              Page   2   of   6   Pages
             ---------                                      ---      ----

<TABLE>
<S>                                                                                                          <C>
- ------------------------------------------------------------------------------------------------------------------------
 1      NAME OF REPORTING PERSON
        S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

                B.A.T Industries p.l.c.

- ------------------------------------------------------------------------------------------------------------------------
 2      CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*                                                    (a) [ ]

                                                                                                             (b) [ ]

- ------------------------------------------------------------------------------------------------------------------------
 3      SEC USE ONLY




- ------------------------------------------------------------------------------------------------------------------------
 4      CITIZENSHIP OR PLACE OF ORGANIZATION


                England

- ------------------------------------------------------------------------------------------------------------------------
                 5     SOLE VOTING POWER
                 
                              -0-

                 -------------------------------------------------------------------------------------------------------
   NUMBER OF     6     SHARED VOTING POWER     
    SHARES                                           
 BENEFICIALLY                800,500           
   OWNED BY    
    EACH         -------------------------------------------------------------------------------------------------------
  REPORTING      7     SOLE DISPOSITIVE POWER  
   PERSON                                      
    WITH                      -0-              
               
                 -------------------------------------------------------------------------------------------------------
                 8     SHARED DISPOSITIVE POWER
                                               
                             800,500           
                                               
- ------------------------------------------------------------------------------------------------------------------------
 9     AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

               800,500

- ------------------------------------------------------------------------------------------------------------------------
10     CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*                                     [ ]

               N.A.

- ------------------------------------------------------------------------------------------------------------------------
11     PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

               4.33%

- ------------------------------------------------------------------------------------------------------------------------
12     TYPE OF REPORTING PERSON*

               HC

- ------------------------------------------------------------------------------------------------------------------------
</TABLE>


                     *SEE INSTRUCTIONS BEFORE FILLING OUT!





                              Page 12 of 24 pages

<PAGE>   3


CUSIP No.    05367P100             13G                Page   3   of   6   Pages
             ---------                                      ---      ----

<TABLE>
  <S>                                                                                                        <C>
- ------------------------------------------------------------------------------------------------------------------------
 1    NAME OF REPORTING PERSON
      S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

               Farmers Group, Inc.

- ------------------------------------------------------------------------------------------------------------------------
 2    CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*                                                      (a) [ ]

                                                                                                             (b) [ ]

- ------------------------------------------------------------------------------------------------------------------------
 3    SEC USE ONLY


- ------------------------------------------------------------------------------------------------------------------------
 4    CITIZENSHIP OR PLACE OF ORGANIZATION


               Nevada

- ------------------------------------------------------------------------------------------------------------------------
                 5     SOLE VOTING POWER
                 
                             -0-

                 -------------------------------------------------------------------------------------------------------
   NUMBER OF     6     SHARED VOTING POWER    
    SHARES                                        
 BENEFICIALLY                800,500         
  OWNED BY                                                                      
    EACH         -------------------------------------------------------------------------------------------------------
  REPORTING      7     SOLE DISPOSITIVE POWER                                  
   PERSON                                                                      
    WITH                     -0-                                              
                                                                                
                 -------------------------------------------------------------------------------------------------------
                 8     SHARED DISPOSITIVE POWER                                
                                                                               
                             800,500                                           

- ------------------------------------------------------------------------------------------------------------------------
 9    AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

               800,500


- ------------------------------------------------------------------------------------------------------------------------
10    CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*                                      [ ]

               N.A.

- ------------------------------------------------------------------------------------------------------------------------
11    PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

               4.33%

- ------------------------------------------------------------------------------------------------------------------------
12    TYPE OF REPORTING PERSON*

               IC

- ------------------------------------------------------------------------------------------------------------------------
</TABLE>


                     *SEE INSTRUCTIONS BEFORE FILLING OUT!





                              Page 13 of 24 pages

<PAGE>   4


         The Statement on Schedule 13G, dated February 9, 1994, filed by B.A.T
Industries p.l.c. and Farmers Group, Inc., is hereby amended and restated to 
read in its entirety as follows:



<TABLE>
<S>              <C>
Item 4           Ownership
- ------           ---------

                      (a)     Amount Beneficially Owned:
                      
                                       800,500
                      
                      (b)     Percent of Class:
                      
                                       4.33%
                      
                      (c)     Number of shares as to which person has:
                      
                              (i)      sole voting power:                -0-
                              (ii)     shared voting power:              800,500
                              (iii)    sole disposition power:           -0-
                              (iv)     shared disposition power:         800,500
                      

Item 5           Ownership of Five Percent or Less of a Class
- ------           --------------------------------------------

                      If this statement is being filed to report the fact that 
                      as of the date hereof the reporting person has ceased to 
                      be the beneficial owner of more than five percent of the 
                      class of securities, check the following box. [X]




</TABLE>


                              Page 14 of 24 pages

<PAGE>   5


                                  SIGNATURES


       After reasonable inquiry and to the best of my knowledge and belief, I 
certify that the information set forth in this statement is true, complete 
and correct.


                                      B.A.T INDUSTRIES p.l.c.


Dated February 6, 1996                By:  /s/ A R Holliman 
                                         -------------------------
                                         Name:  A R HOLLIMAN
                                         Title:  ASSISTANT CORPORATE SECRETARY





                              Page 15 of 24 pages

<PAGE>   6


                                  SIGNATURES


        After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete 
and correct.


                                           FARMERS GROUP, INC.


Dated  February 6, 1996                    By:  /s/ Maryann Seltzer
                                              ------------------------
                                              Name: Maryann Seltzer 
                                              Title: Corporate Secretary





                              Page 16 of 24 pages



<PAGE>   1

                                                  ------------------------------
                                                            OMB APPROVAL
                                                  ------------------------------
                                                  OMB NUMBER:          3235-0145
                                                  Expires:      October 31, 1994
                                                  Estimated average burden
                                                  hours per response . . . 14.90
                                                  ------------------------------

                        Exhibit III to Amendment No. 2

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C.  20549

                                  SCHEDULE 13G
                                 (RULE 13d-102)

            INFORMATION STATEMENT PURSUANT TO RULES 13d-1 AND 13d-2
                   UNDER THE SECURITIES EXCHANGE ACT OF 1934
                         (AMENDMENT NO.              )*
                                        -------------



                            AVID TECHNOLOGY INC.
- --------------------------------------------------------------------------------
                              (Name of Issuer)

                    Common Stock, par value $0.01 per share
- --------------------------------------------------------------------------------
                         (Title of Class of Securities)

                                  05367P100
                             ------------------
                               (CUSIP Number)



Check the following box if a fee is being paid with this statement [X].  (A fee
is not required only if the filing person: (1) has a previous statement on file
reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.) 
(See Rule 13d-7).

*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities,
and for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not
 be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).





                              Page 17 of 24 pages

<PAGE>   2


CUSIP No.    05367P100               13G              Page   2   of   8   Pages
             ---------                                      ---      ----

<TABLE>
 <S>                                                                                                                  <C>
- ---------------------------------------------------------------------------------------------------------------------------------
 1      NAME OF REPORTING PERSON
        S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

                B.A.T Industries p.l.c.

- ----------------------------------------------------------------------------------------------------------------------------------
 2      CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*                                                              (a) [ ]

                                                                                                                       (b) [ ]

- ----------------------------------------------------------------------------------------------------------------------------------
 3      SEC USE ONLY


- ----------------------------------------------------------------------------------------------------------------------------------
 4      CITIZENSHIP OR PLACE OF ORGANIZATION


                England

- ----------------------------------------------------------------------------------------------------------------------------------
                   5     SOLE VOTING POWER
                                          
                            -0-        

                   ---------------------------------------------------------------------------------------------------------------
  NUMBER OF        6     SHARED VOTING POWER                                   
   SHARES                                                                      
 BENEFICIALLY               646,900                                            
  OWNED BY    
    EACH           ---------------------------------------------------------------------------------------------------------------
  REPORTING        7     SOLE DISPOSITIVE POWER                                
   PERSON                                                                      
    WITH                    -0-                                          

                   ---------------------------------------------------------------------------------------------------------------
                   8     SHARED DISPOSITIVE POWER                              
                                                                               
                            646,900                                      

- ----------------------------------------------------------------------------------------------------------------------------------
 9     AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

               646,900

- ----------------------------------------------------------------------------------------------------------------------------------
10     CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*                                                [ ]

               N.A.

- ----------------------------------------------------------------------------------------------------------------------------------
11     PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

               6.41%

- ----------------------------------------------------------------------------------------------------------------------------------
12     TYPE OF REPORTING PERSON*

               HC (See Item 3)

- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>


                    *SEE INSTRUCTIONS BEFORE FILLING OUT!





                              Page 18 of 24 pages

<PAGE>   3


CUSIP No.    05367P100               13G               Page   3   of   8   Pages
             ---------                                       ---      ----

<TABLE>
<S>                                                                                                                   <C>
- ---------------------------------------------------------------------------------------------------------------------------------
 1    NAME OF REPORTING PERSON
      S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

               FARMERS GROUP, INC.

- ----------------------------------------------------------------------------------------------------------------------------------
 2    CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*                                                                (a) [ ]

                                                                                                                       (b) [ ]

- ----------------------------------------------------------------------------------------------------------------------------------
 3    SEC USE ONLY




- ----------------------------------------------------------------------------------------------------------------------------------
 4    CITIZENSHIP OR PLACE OF ORGANIZATION


               Nevada

- ----------------------------------------------------------------------------------------------------------------------------------
                       5     SOLE VOTING POWER
               
                                   -0-
               
                       -----------------------------------------------------------------------------------------------------------
   NUMBER OF           6     SHARED VOTING POWER      
    SHARES           
 BENEFICIALLY                      646,900      
   OWNED BY          
     EACH              -----------------------------------------------------------------------------------------------------------
  REPORTING            7     SOLE DISPOSITIVE POWER
    PERSON           
     WITH                          -0-
                     
                       -----------------------------------------------------------------------------------------------------------
                       8     SHARED DISPOSITIVE POWER
                     
                                   646,900
                     
- ----------------------------------------------------------------------------------------------------------------------------------
 9    AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

               646,900


- ----------------------------------------------------------------------------------------------------------------------------------
10    CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*                                                [ ]

               N.A.


- ----------------------------------------------------------------------------------------------------------------------------------
11    PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

               6.41%


- ----------------------------------------------------------------------------------------------------------------------------------
12    TYPE OF REPORTING PERSON*

               IC (See Item 3)

- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                     *SEE INSTRUCTIONS BEFORE FILLING OUT!





                              Page 19 of 24 pages

<PAGE>   4



<TABLE>
<S>             <C>
Item 1 (a).     Name of Issuer:
- ----------                     
                
                AVID TECHNOLOGY INC.
                
Item 1 (b).     Address of Issuer's Principal Executive Office:
- ----------                                                     
                
                Metropolitan Technology Park
                One Park West
                Tewksbury, MA 01876
                
Item 2(a).      Name of Person Filing:
- ---------                             
                
                B.A.T Industries p.l.c., an English corporation ("B.A.T"), and
                Farmers Group, Inc. ("Farmers"), a US corporation; Farmers is
                the beneficial owner of the Issuer's securities identified in
                Item 2(d) below through various subsidiaries of Farmers, by
                insurance exchanges for which Farmers acts as attorney-in-fact
                or by benefit plans for employees of Farmers and its
                subsidiaries for which Farmers has investment discretion.  No
                such entity beneficially owns in excess of 5% of the class of
                shares in respect of which this report is being made; and B.A.T
                may be deemed to be the indirect beneficial owner of such
                securities by indirectly owning 100% of the issued and
                outstanding shares of Farmers through B.A.T's wholly-owned
                subsidiary, South Western Nominees Limited.  The filing of this
                statement by B.A.T shall not be construed as an admission that
                B.A.T is, for the purposes of Section 13(d) or 13(g) of the Act
                or under the laws or regulations of the United Kingdom, the
                beneficial owner of any securities covered by this statement.
                
Item 2(b).      Address of Principal Business Office or, if none, Residence:
- ---------                                                                   
                
                B.A.T Industries p.l.c.
                Windsor House
                50 Victoria Street
                London SW1H ONL
                England
                
                Farmers Group, Inc.
                4680 Wilshire Boulevard
                Los Angeles, California 90010
                USA
                
Item 2(c).      Citizenship:
- ---------                   
                
                B.A.T Industries p.l.c.   - England
                Farmers Group, Inc.       - Nevada
                
                
                

</TABLE>


                              Page 20 of 24 pages

<PAGE>   5



<TABLE>
<S>             <C>
Item 2(d).           Title of Class of Securities:
- ---------                                         
                     
                     Common stock, par value $0.01 per share
                     
Item 2(e).           CUSIP Number:  05367P100
- ---------                                    
                     
Item 3.              This statement is filed pursuant to Rule 13d-1(b) by
- ------               B.A.T, a Parent Holding Company, in accordance with 
                     Section 240.13d-1(b)(ii)(G), and by Farmers Group, Inc., 
                     an Insurance Company incorporated under the laws of Nevada.
                     
Item 4.              Ownership:
- ------                         
                     
                     (a)      Amount Beneficially Owned:
                     
                                      646,900
                     
                              The shares being reported were acquired by
                              various subsidiaries of Farmers Group, Inc. by
                              insurance exchanges for which Farmers Group,
                              Inc., acts as attorney-in-fact or by benefit
                              plans for employees of Farmers Group, Inc. and
                              its subsidiaries for which Farmers Group, Inc.
                              has investment discretion.  No such entity
                              beneficially owns in excess of 5% of the class of
                              shares in respect of which this report is being
                              made.
                              
                     (b)      Percent of Class:
                     
                                      6.41%
                     
                     (c)      Number of shares as to which person has:
                     
                              (i)     Sole voting power:                -0-
                              (ii)    Shared voting power:              646,900
                              (iii)   Sole disposition power:           -0-
                              (iv)    Shared disposition power:         646,900
                     
Item 5.         Ownership of Five Percent or Less of a Class:
- ------                                                       
                
                        Not Applicable.
                



</TABLE>


                              Page 21 of 24 pages

<PAGE>   6



<TABLE>
<S>             <C>
Item 6.         Ownership of More than Five Percent on Behalf of Another Person:
- ------                                                                          
                
                        Not Applicable.
                
Item 7.         Identification and Classification of the Subsidiary Which 
- ------          Acquired the Security Being Reported on by the Parent Holding 
                Company:                                        
                
                        Not Applicable.
                
Item 8.         Identification and Classification of Members of the Group:
- ------                                                                    
                
                        Not Applicable.
                
Item 9.         Notice of Dissolution of the Group:
- ------                                             
                
                        Not Applicable.
                
Item 10.        Certification:
- -------                       
                
                        By signing below I certify that, to the best of my
                        knowledge and belief, the securities referred to above
                        were acquired in the ordinary course of business and
                        were not acquired for the purpose of and do not have
                        the effect of changing or influencing the control of
                        the issuer of such securities and were not acquired in
                        connection with or as a participant in any transaction
                        having such purposes or effect.
                        



</TABLE>


                             Page 22 of 24 pages

<PAGE>   7


                                 SIGNATURES


        After reasonable inquiry and to the best of my knowledge and belief, I 
certify that the information set forth in this statement is true, complete 
and correct.


                                        B.A.T INDUSTRIES p.l.c.


                                        By:  /s/ A R Holliman 
                                           --------------------
                                           Name:    A R HOLLIMAN 
                                           Title:  ASSISTANT CORPORATE SECRETARY

                                        Date:  February 9, 1994





                              Page 23 of 24 pages

<PAGE>   8


                                 SIGNATURES


        After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete 
and correct.


                                      FARMERS GROUP, INC.


                                      By:  /s/ Maryann Seltzer 
                                         ---------------------------
                                         Name:  Maryann Seltzer 
                                         Title:  Corporate Secretary

                                      Date:  February 9, 1994





                              Page 24 of 24 pages