Just wondering if there is somebody here with an economics background that could play devil's advocate and go bat for Adobe?
Just how is their profit margin affected by the Cloud subscription? What kind of money is saved by not producing packaging and use of a disc?
How is this different from the way publishers charge a dollar for iPhone games or content for Facebook games?
Will the review point be all about the number of subscribers?
What most of us photographers, one man bands, and casual amateur users fail to grasp is that the vast majority of Adobe users are businesses, I have seen figures of over 90% of revenue actually comes from businesses, we are just a very small but vocal minority of Adobe users. It is a pro piece of software that is marketed at imaging and graphics professionals, along with video, websites and publishing to greater and lesser extents, the fact that it is such a flexible photographic editing tool is almost incidental.
Businesses get a 100% tax deduction on leases, purchases have to get depreciated over several years, from a business perspective leasing is a vastly better cash flow option. The core purchasers of Adobe products are happy with the leasing model, it is a good thing for them. A $50 cheque each month with a full deduction, or find $2,000 ish lump sum every two or so years and then have to hold that expense on your books for years.
Also us small but vocal users were not really very good revenue providers. We tended to buy one version of PS and then run it until our cameras weren't supported or there was a must have feature several versions later. How many times did you skip versions of PS? Most of us just got every other one, if that, think about the cash flow implications for Adobe with that model.
Now there are several really good articles out there about Adobes revenue stream plans, basically they expect to lose money, or rather not take in as much money, for over three years, they don't expect to be creating more revenue under the subscription model for five years. They have run the numbers, the numbers, despite our (small users) opinions is good, subscription levels are good enough to encourage investors and the share price is up. Adobe, despite the PR issues to "us", is doing well because for their core market and main revenue providers, the subscription model is much more efficient.http://finance.yahoo.com/echarts?s=ADBE+Interactive#symbol=ADBE;range=2y