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This approach is suitable in the same scenarios as bouncing or consolidating, and the pros and cons are largely the same, although not all DAWs will be able to read the time‑stamp (most can, but check the target DAW's manual to be sure).
There's another benefit, though: you don't end up creating huge, continuous audio files that take up storage space.
This is perfect if you've tracked and comped some parts in a studio using Pro Tools, but want to export the session for mixing in another DAW at home.
In some DAWs, the process is a little more fiddly than in Pro Tools.
OK, hard drive real‑estate isn't that costly now, but if you're planning to transfer projects via a web‑based delivery system (an FTP site, Dropbox or Yousendit, for example), file storage and upload/download speeds are a real issue.
Newer versions of a DAW may include additional functionality, and different plug‑ins from previous versions, as plug‑ins have been updated, or licensing deals with third‑party suppliers of older plug‑ins expire.
Previous versions of Cubase, for example, required you to bounce each track separately, which could take an eternity with a large project; and if you're working with analogue gear, or on Pro Tools, you'll be limited to bouncing tracks in real time — which can be frustrating with long projects (a 20‑minute radio drama, for example).
Many DAWs also offer some form of 'consolidate' function (as it's called in Pro Tools).
It's for this reason that I tend to bounce virtual instruments as audio, which can be edited and processed in the usual way, and only use MIDI as a backup.
There are a few quirks to watch out for, such as identical instruments having different presets on each machine, or how multitrack MIDI files are exploded on to different tracks, but exporting and importing MIDI files is generally a pretty painless process.That said, there are several areas of commonality, so it's always possible to transfer at least some data: all use a timeline, and offer multiple mono or stereo audio tracks; they support plug‑in effects, processors and instruments; they generate automation data, probably using MIDI, to control effects and virtual instruments; the job of summing signals together on a bus is a simple mathematical process... Before exporting a project, consider what media you plan to use for the transfer.