Adobe announced second quarter financial results and provided some details on the success of creative Cloud.
Among the comments:
45% growth in subscription for the quarter - ahead of plan
On track for 1.2 million subscribers by year end
80% buying the whole suite vs. 20% a single product
Strategy is intended to increase revenue per customer/subscriber
12 million users of Adobe products - many are single product older versions
The stock is up reflecting positive feedback from the financial community. Everything I read in the transcript looks pretty positive.
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#1. "RE: Adobe Creative Cloud results are positive so far" | In response to Reply # 0nwcs Registered since 15th Jan 2006Wed 19-Jun-13 11:19 AM
I am not surprised, though. They're seeing the surge created by people upgrading from the perpetual licenses. I expect they'll hit a stable point before too long. The question is whether they would have more if they handled the perpetual license issue differently. For my part, as one having had every single version of Photoshop, I'm moving on. CS6 is my last and I may say goodbye to Lightroom. Been using it less and experimenting with other solutions.
#2. "RE: Adobe Creative Cloud results are positive so far" | In response to Reply # 0JonK Nikonian since 03rd Jul 2004Wed 19-Jun-13 04:33 PM
They may also be seeing a bump due to people like me and offset (and large format) prep departments:
To remind you, I work in the graphics field and so use several Adobe apps, and of necessity (being able to open client files) tend to update each CS cycle. But I don't necessarily update the first day. At home I've been running Photoshop 6 but CS5 for InDesign and Illustrator. The discounted price of $19 get me updated for al the apps I want — and a whole lot more apps to play with! The driving force was Lightroom 5 — pay the $79 upgrade or start the Cloud at $19. For me, a no brainer.
Prep department work similarly. While we have CS6 on one or two machines — we need it to be able to open InDesign 6 and Illustrator 6 files — we haven't put it on every machine, though we will eventually. That day may be here, as there's a 40% discount for workgroups.
But bump or not, I still think this is a good model for Adobe — and probably for most users. And it's inevitable. We used to occasionally get a disk and a manual. Then we lost the manual. Then we lost the disk. Now we have lost the occasionally.
I understand that for most photographers the Adobe Cloud does not work at the current pricing. I think Adobe will figure it out and make photographers an attractive offer, probably pretty soon.
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#3. "RE: Adobe Creative Cloud results are positive so far" | In response to Reply # 2quenton8 Nikonian since 11th Apr 2010Thu 20-Jun-13 04:24 PM
My only complaint is the inability to use it after I stop paying.
I understand it from Adobe's point of view, they cannot have me pay for 1 year (or less) and then own that forever or until I want an update and then pay for one more year.
They would have to have something based on say "4 years of CC" and you own THAT version. I am sure there are other concepts that could be used.
For me I am paying the $120 for the first year of Photoshop, and I will see then what the options are.
I have no problem with the current LR pricing, $79 every year or two is OK by me, I have 2 major catalogs and need something like LR to manage them. I also use LR for 90% of my editing -- why would I go elsewhere?
#4. "RE: Adobe Creative Cloud results are positive so far" | In response to Reply # 3Luke_Miller Nikonian since 19th Apr 2006Fri 21-Jun-13 12:53 PM
Recently subscribed to the Creative Cloud and so far, so good. My wife and I use a lot of Adobe apps and the Cloud makes economic sense for us. Particularly so after receiving the Adobe email offering current Adobe Creative Suite users a subscription to the Cloud at $19.95 for the first year.
Not too worried about access to my files should I cancel in the future. Currently using Lightroom 5 (the non-Cloud version) but may go to the Cloud edition if Cloud-only updates to Version 5 are announced. If Lightroom continues to exist outside of the Cloud I will probably keep a current version. Most of our work in the other Cloud apps (Photoshop, InDesign, Dreamweaver, etc.) goes into products and I rarely have to revisit them.
I also use Capture One 7 for some image processing. Phase One is developing a Lightroom catalog import feature in Capture One that allows import of the basic Lightroom adjustment set. So that is a potential fall back for Lightroom users.
#5. "RE: Adobe Creative Cloud results are positive so far" | In response to Reply # 0
I can see where having Lightroom in the CC would be dressing on the CC suite rental, but not a driving force considering a perpetual use $79 upgrade price vs 240/yr . Agreed that using several Adobe applications and moving to the CC is currently economically smart. But is locking your work into propriety formats wise? Or for individuals, will the $600/yr in the near future seem as good as a deal?
I don't think already calling the CC a success is really worthy of that? They now have 700,00 paid subscriptions after a year of availability - compared with over 12 million licensed users of their apps (Adobe stats). They may be on track with what they expected, but only after their expectations and feedback required licensing and user rights changes revisions over the last three years in.
If Adobe becomes successful in their CC endeavor most companies will follow, which could lead to a lack of competition and choices. Adobe has started many to consider alternatives which in a few years may not prove out to their benefit. Hopefully it will bring some strong competition since Adobe has already purchased and integrated their strongest former competitors.
Last year I started archiving all of my kept photos to DNG and TIFF formats with the best being preserved in archival prints as well. I also started using Extensis Portfolio again and now have viable alternatives if I quit using Adobe products.
I have done well in the past not using Photoshop, Illustrator and Dreamweaver. The idea has carried over to three companies I work with, it will probably be a year or two of testing in these companies to see if alternatives are financially feasible.
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#6. "RE: Adobe Creative Cloud results are positive so far" | In response to Reply # 5prreid Nikonian since 10th Oct 2012Sun 23-Jun-13 08:12 PM
I think the Adobe CC is a strategically good business decision for Adobe in marketing to the prophotographer and/or -designer. In fact, for these folks it makes a lot of customer sense, too
HOWEVER!! for the (poor/left behind) amateur (like me), the availability of future updates/new releases will likely, increasingly, related to the cloud business. That's too bad because I suspect that we (amateurs) constitute a significant portion of the Adobe sales (especially when considering the other Adobe products we might buy, e.g. books, etc.).
I am primairly a LR and PS user. I do not sell my photos and I do not design webpages, etc. I just enjoy photography and the ability to use sophisticated programs to post-process.
I realize that a likely counterposition (to mine) would be to note that Adobe still offers the software for individual programs. BUT, have you ever tried to find how to (e.g.) update CS? Yes, one can to it, but its far from a user-friendly path. I fear (even paranoids have enemies) that this move by Adobe portends a dark future for the amateur.
#7. "RE: Adobe Creative Cloud results are positive so far" | In response to Reply # 6MarkM10431 Nikonian since 15th Apr 2013Wed 10-Jul-13 01:59 PM
well, adobe does have a pretty solid lock on the PC industry, I mean realistically, who is thier cometition? Corel? they made paint shop pro a joke with the last couple iterations.
can't think of another player who rivals adobe in any grand fasion. if there were, who still offered stand alone or suite discounts for the traditional license method, adobe would be rethinking thier scheme.
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