I don't know how this isn't getting more attention. These numbers are huge! Not only has Adobe proven their subscription model to be finacially viable, the've clearly starting winning over those creative content producers who were steadfast against "renting" software. This can only be possibe because of one reason and one reason alone - the software is fantastic and their customers are loving it! The numbers speak for themselves, 5.3 million people can't be wrong! Adobe has been listening to their users, adding features, tweaking the GUI, and providing a level of interoperability and workflow between their various content creation titles that puts them lightyears ahead of the industry.
As an Adobe Pro Video reseller, this is a bittersweet pill to swallow. Adobe has abandoned us in order to market and sell the Creative Cloud subscriptions directly to their customers, often at promotional prices below what we pay for the Creative Cloud for Teams product we offer. I guess our loss is your gain.
It's frustrating because we feel we played a big part in helping them get the Creative Cloud launched, but from a financial point of view, I get it. Even if they sell all 5 million seats at $29.95 per month, that comes to almost $1.8 BILLION dollars in annual, recurring revenue. If they can get the full $49.95 per month for renewals that comes to almost $3 BILLION DOLLARS in revenue.
With that kind of revenue stream, we can only imagine what kind of new features, performance and technologies will be coming down the road. I am hopeful that the Creative Cloud for Teams will become more featured and powerful vs. the standard CC subscription, creating an opportunity for Pro Video VARs and resellers to once again become a big part of Adobe's sales. Perhaps it will be tapping into their Anywhare technology for small workgroups, or virtual reality content creation, or accelerated 4K workflows.
Even if we never get back to selling Adobe at the levels we used to, we know that Adobe Premiere users still look to Videoguys for information about video editing. workflows and the latest post production technologies. We've got storage, plug-ins, HP workstations and other products that Adobe editors still need!
Studio Daily by Bryant Frazier
Adobe Creative Cloud Subscriptions Cross 5 Million Mark
Adobe said yesterday that Creative Cloud subscriptions had grown to 5.3 million subscribers in its third fiscal quarter ending August 28, a 90 percent increase from this time last year.
Adobe CEO Shantanu Narayen said perpetual licensees of Photoshop Elements and Lightroom have begun to move to Creative Cloud Photography at an accelerated rate, and that subscriptions are taking off in international markets that had previously lagged behind the U.S. "In the quarter just finished, we saw some great progress in terms of migrating the CS6 base in Japan," he said. "The perpetual [license] business was healthier there later in the cycle, relative to the U.S." He said Adobe is continuing to "migrate" users from CS6 licenses to Creative Cloud subscriptions. read more...