Adobe Plans to Abandon Packaged Software Biz

by Christopher Freeburn | May 7, 2013 9:33 am

Adobe Adobe Plans to Abandon Packaged Software Biz[1]The company behind some of the most popular digital image editing and creation software announced on Monday that it would no longer sell new versions of its applications to customers outright[2].

Instead, Adobe (NASDAQ:ADBE[3]) will charge a $50 monthly subscription to users of its Creative Suite. The Suite contains a number of programs, including Photoshop, Acrobat and Illustrator. Users who pay the fee can access the applications online through Adobe’s Creative Cloud service, the Associated Press notes.

Since its launch last year, Creative Cloud has added 500,000 paid subscribers. This isn’t the first time Adobe has changed the way it sells its products. A decade ago, the company stopped selling its applications separately, bundling them into its Creative Suite package. Existing packaged versions of Creative Suite can still be purchased from some retailers for about $2,380.

Earlier this year. Microsoft (NASDAQ:MSFT[4]) adopted a similar model with its popular Office Suite[5], which includes Word and Excel, charging users a $99 annual subscription to use the software. However, Microsoft still release packaged versions of Office that do not require an on-going subscription.

Shares of Adobe slipped fractionally in Tuesday morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/09/Adobe.jpg
  2. ould no longer sell new versions of its applications to customers outright: http://www.dailyherald.com/article/20130507/business/705079938/
  3. ADBE: http://studio-5.financialcontent.com/investplace/quote?Symbol=ADBE
  4. MSFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MSFT
  5. adopted a similar model with its popular Office Suite: http://investorplace.com/2013/01/microsoft-launches-new-subscription-based-office/

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