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1. Re: Subscription based CC means Adobe decides what updates are enough
99jon May 30, 2013 3:00 AM (in response to anssikumpula)It’s a big change for customers and a huge gamble for a corporation that believes it has complete pricing power. But having to grow revenue from a new business model, rather than new products, is also a sign of weakness. No wonder, we are told, they are listening to the backlash; notably from semi-pro photographers/hobbyists.
“The majority of our revenue comes from perpetual licenses. However, our subscription revenue, as a percentage of total revenue, has increased to 15% in fiscal 2012 from approximately 11% and 10% in fiscal 2011 and fiscal 2010, respectively.”
[Quote: Adobe's CFO Mark Garrett]
The big test is twelve months hence. Garrett doesn’t mention the churn rate, but how many will cancel after the first year discounts come to an end?
Adobe will need plenty of new innovations to keep us subscribing!
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2. Re: Subscription based CC means Adobe decides what updates are enough
anssikumpula May 30, 2013 9:24 AM (in response to 99jon)Thoughtful, thanks. First year discounts are one challenge. Not supporting old hardware and operating systems is another. Lots of uncertainty for Adobe in following years to come.
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3. Re: Subscription based CC means Adobe decides what updates are enough
W_J_T May 30, 2013 9:42 AM (in response to 99jon)99jon wrote:
“The majority of our revenue comes from perpetual licenses. However, our subscription revenue, as a percentage of total revenue, has increased to 15% in fiscal 2012 from approximately 11% and 10% in fiscal 2011 and fiscal 2010, respectively.”
[Quote: Adobe's CFO Mark Garrett]
Not very compelling numbers to bet the future of Adobe on all while alienating your current perpetual users in the process.
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4. Re: Subscription based CC means Adobe decides what updates are enough
anssikumpula May 30, 2013 11:08 PM (in response to W_J_T)Would be sad to see Adobe actually losing revenues for this change, effectively losing resources to update InDesign and Illustrator further. I have CS5 of those and CS6 didn't bring much anything to the table - for me - worth purchasing. Now with CC subscription model I wouldn't have the power of not paying for unuseful new features.
Not paying for an upgrade is a powerful way to send a message to Adobe "this is not enough". With new CC model they get their money anyway, year after year. So I'm worried will they really improve in innovating or get lazy.
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5. Re: Subscription based CC means Adobe decides what updates are enough
Nancy O. May 31, 2013 8:40 AM (in response to anssikumpula)To clarify, you are not required to accept Creative Cloud updates unless you choose to. I rarely update my software right away. I usually wait until my plate is clear of projects. So if your Mountain Lion Mac doesn't meet min requirements to support a CC 3.0 product upgrade, you are under no obligation to download it. Upgrade when you're ready.
Nancy O.



