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Adobe’s Q1 Numbers Show Creative Cloud Is a Success, Whether We Like it or Not

Adobe CC Splash logo

While the photography world continues to have mixed feelings on Adobe Creative Cloud and its accompanying subscription model, Adobe execs aren’t regretting the move one bit. That’s because, according to Adobe’s first quarter financial report, Creative Cloud has been a hit.

How big of a hit? Well, in terms of numbers, Creative Cloud has 1,844,000 subscribers, up almost half a million from the end of last year. And with over half of Adobe’s revenue coming from their subscription-based services, Creative Cloud played a big part in helping Adobe reach the higher end of their projected revenue range of $950 million to $1.0 billion.

Also notable: numbers show consumers are more apt to purchase the entire suite rather than subscribing to only one or two apps, and the average subscription length is a respectable 18 months.

So while the opinions from the photography world may be far from positive at times, there’s no denying the model is working for Adobe… at least for the time being. Read the full earnings call for yourself on Business Wire and then let us know what you think in the comments.


 
  • IamStarGoat

    Nobody is forcing anyone to use Photoshop to begin with though. People sound as if using this software is a human right and not a service you pay for. If you’re worried that you will never be able to access your images again after you stop paying for a subscription, then I would suggest saving them to a non destructive format other than .psd for archiving. That being said you still have the choice of buying CS6.

  • Tim

    > there is a reason this free software has no real userbase….

    Almost 70% of world’s websites run on free software…

  • Tim

    For those in the US, ask your accountant about the Section 179 Deduction as that might let you deduct everything that year.

  • Tim

    Except they just abandoned Fireworks.

  • Nonna

    switch to Pixelmator and live happy

  • bbear

    BWA HA HA!!! I’m glad my post inspired you to create a temp account to simply insult me. In fact: there is one side of the here that seems to be pretty free with the insults and pretty poor at debate.

  • bbear

    After ten minutes of scrolling through comments on the official Creative Cloud Facebook page I was unable to find the multitude of customers that have had their software deactivated when their credit card couldn’t be charged.

    Me and Mike have posted our experiences. A quick search through google finds responses that echo our experiences. If you have evidence to show otherwise please feel free to share it.

  • lmederos

    My main issue with subscription software is that I give up control. Let me explain.

    The best offer I have seen from Adobe for steady-state is $30/month. That means $360/year.

    1. I took advantage of an offer and purchased the Adobe Master Collection several years ago. After 2 years I upgraded to a more recent version, for $599, less than the $720 equivalent for 2 years of CC, so I would have paid less in the future under the older model.
    2. I have not found any Adobe s/w that dramatically different (I admit for my needs) over a 2 year period. Arguably I could have stayed with same version for a little longer.
    3. The upgrade was something I owned, not rented monthly.
    4. I did subscribe to the Adobe CC for Photographers because it does give me for $9/mo both PS and LR, which is roughly the amount I would have spent upgrading LR. However, read #5.
    5. I have learned not to update the CC programs whenever they come out. I now wait as I was burned with a PS update that messed me up until Adobe issued an update to an update. I had to go back to my packaged copy of CS6 until that was resolved, and was glad to have that option.

    Your needs may be different. Personally, I would prefer having the choice of having to pay a monthly subscription or not.

  • Bob

    Because all the people kicking off are the ones who download it for free illeagally off torrent sites! Now the realization of having to actually pay for the latest version is just all to much for them! If you can’t affford $10 per month in the photography industry then I’d try something else.

  • Chris Prakoso

    Thanks very much for this nice insight. I’ve been reading up about what people had been complaining about and I’m starting to understand what the issues are.

  • Chris Prakoso

    Thanks for a nice explanation. I understand the grief that the long-time customers had experienced with this new subscription, without having an option to buy a standalone. I can certainly sympathize with that. Unfortunately, there isn’t much I can say about that. Adobe doesn’t seem to have any plan in the near future to offer an alternative.

    On the other hand, your analogy on owning a house and renting were not exactly fit this situation, IMHO. If you had owned a house, just like you currently have your copy of Creative Suite, than that’s it, you have it, you don’t need to rent anything else, you live it already. Now, if you want a ‘new’ house however, then the current renting situation will come into play, because suddenly you can’t buy house anymore, and you are forced to rent it.

    You don’t have to get a new house in anyway, because you have one already. And btwy, if you DO want another house by renting, this house will ‘renew itself’ every year.

    If you can’t afford the rent (because maybe your company just decided that they didn’t need you anymore), well … then you still have your old house. I doubt it that your freelance work and your creativity will affect much by having the newest and latest Creative Suite, would it? And also, even if Adobe decides to offer a stand-alone CS, you would’ve not been able to afford it anyway, right? So, you were still going to use your old CS to do your Freelance work, until the time you can have enough to buy the upgrade.

    Sorry, I am not trying to discourage you, I’m just stating the fact. This is what I would do anyway.

    Btwy, I don’t know what kind of design work you are doing, but if you just need Photoshop and nothing else, I think $10 a month is pretty affordable, IMHO. Yes, the price will be up next year, but hopefully by then your business will pick up and you will be able to afford the increase.

    In anyway, I wish you good luck.

  • Chris Prakoso

    $10 a month? C’mon man, you can’t afford this? It’s less then 2 packs of cigarettes. If you can’t afford this, for something that essentially your tool or trade, then there must be something wrong with your accounting. Even when there is a downturn, it’s not that it happens overnight. It usually goes gradually, during which time you will have to weigh your options, not just on this but everything in your life.

  • Chris Prakoso

    I’m also an amateur, but for me the deal is better than buying a standalone PS, which in the UK cost about £600. Btwy, you also get Lightroom (£78) as a bonus as well.

  • Prashant

    I really do not understand why all Americans feel they are the only world, just compare the salary structure of the third world and ultimately there could only be a good riddence to Adobe.

  • Chris Prakoso

    Just FYI, I’m not an American, I’m an Indonesian, but I’m lucky enough to live and work in the UK.
    So you are telling me that in the Third World countries, people prefer to pay more than $1000, than $10 a month?
    I don’t know which Third World country you are coming from, but in Indonesia nobody was actually ‘buying’ Adobe products, why, because nobody can afford $1000, and second you can buy the pirated version as easy as you buy fruit and vegetable in local market.
    At least with this $10 scheme, people can be persuaded to be more ‘honest’ and start paying for the software they are using.

  • Prashant

    First of all all the countries have different pricing, Here in India students version cost around 20$ a month for first year thereafter 30$ a month for complete students version, for individual version it costs 10$ for Photographers including photoshop and lightroom but i don’t see any benefits from purchasing because these are available as standalone versions from previous releases and they will support photographers for n years because any big innovation in photoshop is hardly to be forseen from future CC versions therefore it becomes cheaper to buy full suite of CS 6 at 99$.
    The Innovation most likely would come in products like Ai, Pr, Ae, Dw so, summation is they cost around 30$ in current scenario when Adobe have recently converted there apps to CC version in future when something more productive feature or a new tech. support such as HEVC, HTML5 would mature into Adobe they would charge more with subsequent versions, therefore its a boo! deal.

  • Chris Prakoso

    $350 for a CS6? That’s an equivalent of having CC for 3,5 years ($10 a month)! With free upgrade when it’s available, immediately. And btwy you also get Lightroom too.
    This $10 is locked forever, it’s not an introductory price, there is no limit when it will go up.
    Who said that your data is locked with password? You have your photos/images locally, they are yours, you can back all them up anywhere you like or share them to whom ever you want. There is no restriction there.
    From my point of view, the new deal for Photography has democratised Adobe software for many many people, not just a few who can afford them. Now with little money anybody can enjoy it too. For me it’s a very big deal. And it will also ‘help’ to stop piracy.