Adobe has been sending out notices of price increases for its Creative Cloud subscription plans the past week or so. I got mine earlier this week.
Starting April 16, 2018 prices go up for several Creative Cloud plan types.
Here’s the breakdown of the increases from Adobe:
“Pricing will vary by plan — for example, for the annual pay monthly plans:
- Creative Cloud for individuals Single App plans will increase to US$20.99 per month from US$19.99 per month, a $1 per month increase.
- Creative Cloud for individuals All Apps plans will increase to US$52.99 per month from US$49.99 per month, a $3 per month increase.
- Creative Cloud for teams All Apps plans will increase to US$79.99 per month from US$69.99 per month, a $10 per month increase.
Existing customers will receive specific information about their membership pricing directly from Adobe.”
Current STE Student/Education, Creative Cloud Photography and Acrobat CC plans will see no pricing adjustment.
This price increases were signalled last fall at Adobe MAX 2017, which took place is Adobe’s highest revenue quarter ever. Adobe gives no direct reason for its price increase (e.g., it’s having trouble paying the bills, shareholders are upset with revenue, etc.), and only points to the fact that the prices have stayed the same during the past five years.
This is in the FAQ section of its website about the price increase. I don’t understand why Adobe puts this question in the FAQ if it is going to evade its own FAQ. It’s almost like Canon answering questions about 4K cameras a couple years ago…
Adobe has become the giant that no one else can touch.
It offers a suite of products for the creative pro that is unrivaled in the market. Sure, there are programs that can compete with one or two of Adobe’s products at a time. However, no one makes a digital suite of products that covers the full gamut of Adobe’s solutions from photo to video to design to publishing. Adobe is supplying a product experience that has an unchecked demand right now. Adobe can easily push the price another 6% for individuals and 14% or whatever it decides to push to production houses that have massive teams tied to Creative Cloud.
Adobe achieved record annual revenue of $7.30 billion in fiscal year 2017, representing 25 percent year-over-year growth. Creative Cloud alone accounted for $4.17 billion of that revenue.
Adobe’s prices have stayed the same over the past five years; however, Adobe continues to add more subscribers as its revenue breaks its own records quarter after quarter and year after year.
Of course, I’m going to keep paying for the service for the reasons I mentioned above. The vast majority of other creative pros will do the same.
Where is the pain point that pushes the market too far though? What’s Adobe Creative Cloud worth to you and are you considering other options after the price increase?