Subscriptions

[Steve Sherrick]

I've long supported software companies. I have always been against pirated software. I understand the challenges that software companies have in terms of cash flow. But I want to ask the community (and I know some of you are programmers) are we heading for a tipping point with the subscription model? It seems like every company is doing it now. Some are still offering perpetual licenses, which is great. Options are always welcome in my opinion.

The speed at which things move now, we are seeing constant updates, whether it be an OS update, an NLE update, etc. New codecs keep emerging and new cameras are released at an incredible pace these days. So, it's very easy to get out of sync with versions of software. Me personally, I have always tried to stay a version or two back as I like to let bugs settle out and try to find something that works and stick to it. But sometimes that doesn't work out if there are features that you need for a project.

In the subscription model, the idea is that you pay monthly or yearly fees on an ongoing basis and that keeps you up to date with the software. While in theory, that is great I think we have seen numerous occasions where there is a domino effect where an update breaks something either in its own software or another piece of software and then a vicious cycle begins of trying to get things back in sync.

I'd like to hear from the community what you think of this. Are we better off with an all subscription world where you have to pay to play (or at least play current) or is this model going to start getting unwieldy? As it is, I already have loads of subscriptions that have to be managed and it's only going to increase. Recently for example, Imagine Products took Shotput Pro to the subscription/Support Fees model. In their model, you buy it for $149 and pay $39 year to stay up to date. So, the $149 buys you a year of updates and then you are stuck at that version. Same model used by Avid and their perpetual licenses. The other extreme is Adobe where you are required to pay monthly or you can't use the software anymore unless you pay. That's the model I have the biggest problem with. Mainly out of principle, not the actual cost which at this moment is still reasonable for what you get. My other pet peeve with Adobe and why I don't have any of their software currently installed on my production machine, is because I feel they are invasive when it comes to privacy and they seem to have something always active regardless if you are using software or not. I don't like that.

To me, if I have to choose a model, it's the perpetual with yearly support. It means you can stop at any version you want to and continue to use that. So if you have no need for updates, you keep on working with the software without the need to pay for unnecessary updates. A rarity these days is the buy once, get all updates free model. Apple with FCPX and BMD with Resolve Studio are still using this model. Also, products like Affinity Photo and Affinity Design are buy once, get free updates. So, it's very tempting to go that route if those products do everything you need them to do. Of course, in the case of Apple and BMD, they have hardware sales to support their software end of things, so a bit apples to oranges comparison.

As an enduser, what's your take on this? I've also created a poll.

 

[Les Hillis]

I prefer to buy software outright, but expect minor improvements and fixes for free if the software needs them, until the next major version of the software, which I would then buy as an upgrade (preferably with some kind of discount for being a prior customer). That's what I did with Adobe Premiere for years before they tried to force the subscription model. When Adobe did that I just stuck to the latest version I had, then left them altogether and bought a full version of Resolve when that got an editing feature. Haven't regretted that at all, and still resent Adobes treatment of their customers in that matter.

Not against the subscription model altogether and understand it could be a good option for some, but it's not for me and I'll avoid it wherever I can.

 

[Michael Wahba]

I'm done with Adobe's BS. Davinci is great enough now that I unsubscribed from my Adobe suite and I haven't looked back.

 

[Phil Holland]

Adobe used to have something called the Production Suite, which was updated about once a year to 1.5 years for a cost of $500-$799 if I recall correctly. If you wanted to support the newer codecs and all that, you had to move forward. Many professionals got used to the nut once a year as new features and things were added, even new software packages.

The advantage there was people could decide when to spend that money and upgrade, but of course if you locked into a workflow there might not be a potential future dollar there for Adobe.

Resolve has their Studio license for $300, but is otherwise free if you don't need "all the goodies". Their software is primarily financed by profits of other products and isn't exactly a money maker for them. Your studio license gets you free updates, similarly to something like FL Studio for the most part.

Adobe has no other products other than being a software company, which has led to where they are now.

At the moment Adobe has a promotional $29.99/mo, $360 a year for new customers. Existing customers are $52.99/mo, $636 a year. There are various other plans that might make more sense for individuals as well. On a deeply personal level I think that's about the worst thing to do with a subscription based service to long time loyal customers, especially such a notable price difference. This concept deeply needs to be looked at in the face of competitors evolving and providing a better value in some directions.

There's probably a number that Adobe can land on that would make more people happy and that is likely what needs to be explored at this point. For many professionals it's just a monthly expense not thought about, but again as others rise up to the occasion, there will be a tipping point where a mass audience will likely catch on to other ecosystems and they'll lose a notable customer base. This will mostly happen in the next 2-3 years.

This is coming from somebody on beta teams for various software packages and a long, long time user.

That said I'm happy with the innovation and progression for the most part for both parties. Adobe has some really nice tech that is pretty different than the BMD world, but at the same time BMD seems to have the gas pedal pushed down right now and they are catching up slowly but surly. The second they bolt down some of the other needed aspects of a motion picture workflow and perhaps general graphics based stuff, well that's where the battle is.

 

[Steve Sherrick]

Stocks as of today (minus BMD, although I put a little blip about their earnings from wikipedia)

 

[Marc Wielage]

Correction for the Blackmagic chart above: Grant Petty was interviewed earlier this year by an Australian news company and mentioned that Blackmagic Design had 3000 employees worldwide, and the reporter said their 2018 sales were $300,000,000 (and that may be Australian dollars).

My preference in software would be modified: I'd have a purchase price, then a reasonable fee (say $50-$100) for a yearly update, and an additional fee if you wanted 24/7 service. If your business depends on zero downtime, I think being able to pay for extra support is vital.

 

[Karim D. Ghantous]

My choices are simple: free, or paid and owned. Simple as that. I use both free software and paid commercial software. I do not do renting when it comes to software.

Even with my phone, I own the phone and I have a prepaid plan. In this case, there is not much difference, and it's a different model anyway. But at least I know that I own my handset, and that I can tweak my prepaid plan by the month if I need to.

BTW, I predict that Blackmagic is going to include 2D painting tools in Resolve (if they haven't already, I only play with an old version at this point).

 

[William Long]

Same as Karim, buy outright, sometimes pay for an update. Dropped Adobe years ago for the reasons listed above. That model is like an ‘off’ switch for me.

 

[Hugh Scully]

I prefer the perpetual model with yearly updates. This is the arrangement I had with Adobe up to CS6. I am editing on a project now (not my machine) using Adobe PP again. I like it. I always have but the subscription model doesn’t work for me. So I’m working on Davinci Resolve Studio on my workstation. I think it’s great.

I am a lapsed software engineer having worked in application development for 25 years. I don’t think that the subscription model was devised to bring more resources to development, but rather to provide shareholder profit. Having to update software, and charging a fair price for it, is the best way to incentivize good software engineering and align profit with putting out sturdy stuff which is why I prefer it.

Free everything is anathema to me. I wrote software for a living. Even though I benefit from BMD’s loss leader model, I think it is brittle and unsustainable long term.

 

[Hrvoje Simic]

Calculating chances of perpetual dependency on subscription and third party and constant feeding of the Corporatosaurus for access to working tools:

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Result : 0

 

[Jaime Vallés]

For many professionals it's just a monthly expense not thought about...

That's where I am right now. If I'm not able to cover the $53/month with paid jobs, then I'm not really working. The subscription model is what made it possible for me to get into the Adobe suite in the first place. I regularly use Premiere, Lightroom, Photoshop, InDesign and Illustrator, and I'm dabbling in After Effects. The cost of the Adobe Master Suite was something like $2400, and there was no way I would have been able to pay for that all at once. But $50 per month? No sweat. And this way, I never have to worry about "Should I upgrade to the latest version? What am I giving up if I don't?"

That said, if you're only interested in Premiere, then I understand if the subscription model doesn't make sense for you. But for me, using all those programs for paid gigs daily, it's a bargain.

 

[David Collard]

The subscription model is certainly working for companies like Adobe, so it's highly unlikely they're going to move away from that.

Most software is so bloated now it's almost as if you are forced to continually update to adapt to updated operating systems etc.

Pay to Play and yearly licences seem here to stay.

 

[Steve Sherrick]

That's where I am right now. If I'm not able to cover the $53/month with paid jobs, then I'm not really working. The subscription model is what made it possible for me to get into the Adobe suite in the first place. I regularly use Premiere, Lightroom, Photoshop, InDesign and Illustrator, and I'm dabbling in After Effects. The cost of the Adobe Master Suite was something like $2400, and there was no way I would have been able to pay for that all at once. But $50 per month? No sweat. And this way, I never have to worry about "Should I upgrade to the latest version? What am I giving up if I don't?"

That said, if you're only interested in Premiere, then I understand if the subscription model doesn't make sense for you. But for me, using all those programs for paid gigs daily, it's a bargain.

I agree, at the current rate it's not really the money that's the problem. It's the principle. There's no option to own. Even if you never wanted an update or upgrade again in the future (not realistic, but just illustrative) you do not have the option to do that. You have to pay to play. Now, at that amount, no worries. What happens if it suddenly goes up to $125/Month next year. Then $250/month the year after. And then $400/month the year after. I'm not saying Adobe will do that, but is there anything stopping them? Perhaps there is. Aside from the rage it would cause from their user base, there's also the competition. So, I don't see Adobe doing that. But, again, is there anything that says they can't? What seems like a deal now, could in theory get expensive quickly. That's the main problem I have with it. Hopefully they won't pull the tactic used by some of these web hosting companies that get you in at a low rate and then double or triple that rate upon renewal.

Also, I would like to see Adobe and others address the concerns about invasive tools/apps that bog down your machine and who knows what else.

So, again, the $56/month is reasonable for what you get from Adobe. But imagine a world where every piece of software you have is on subscription and there's no limit to how much they can raise it. Suddenly you could be over your head in subscription fees and held hostage if the software stops working once you stop paying. Let's hope it doesn't come down to that.

 

[Phil Holland]

Adobe lacks a front man these days to do it, a couple key people who used to be a bit of that voice have since moved on.

But a sincere and honest face who can come out and explain that $$ a month and $$$ a year allows them to continue developing and adding state of the art features to all of their software packages is the core effort behind the subscription model which leads to features like Motion Content Aware Fill (which is really a wonderful tool) is what's going on.

The other real big issue Adobe has faced over the years is Piracy, still to this day. Subscription allows for a moderate fight against that potential lost revenue, but it's still a problem for anybody making software.

And back to my sort of sudo-starting point here, for many professionals we are passively paying because we like, need, or want to work within this ecosystem. Giving people a handsome discount for the first year percentage-wise for new costumers is an obvious way to drum up business, but for long time customers it's pretty easy to look at that and say "wow, those people get 56% off" and we're sort of left in a corner where they value potential new costumers over an established loyal user base.

This is something RED does well with the upgrade program/mentality and for those who have been on that ride it typically results in notable savings over purchasing a brand new system. I've now spoken to a handful of people who are currently "on fire" about not having something similar for those chosen brand/camera at the moment. In that way it's not a buy once, cry once situation. But rather a cry once, buy once, cry again, sell, and likely enjoy a third cry to move on.

 

[Michael Hastings]

But a sincere and honest face who can come out and explain that $$ a month and $$$ a year allows them to continue developing and adding state of the art features to all of their software packages is the core effort behind the subscription model which leads to features like Motion Content Aware Fill (which is really a wonderful tool) is what's going on.

I voted for the Apple/BMD model because there wasn't an option for Buy it-own it without free updates. Free updates are great but probably not sustainable in the long run - mainly works while you are rapidly developing the software and generating new sales - but once things settle there will be a need for additional revenue to support development.

The subscription model is fine when you are regularly using the programs but it is very frustrating when you aren't but may have old documents that you still want to open.

Back in the day, when print was king and we had to create numerous new brochures and ads every few months, I was quite proficient in QuarkXpress and was so used to using it that I even wrote letters and such in it (where WORD would have been fine) as well as articles and guides that are still relevant today. When the internet came along and apple went intel I kind of abandoned it as I wasn't using it as often (and for a while the free/cheap version of Indesign opened the Quark files.) Eventually that broke down and a few years ago I paid a few hundred to upgrade just to get some old documents - and I actually really enjoyed it - it was like playing your favorite guitar - all of the keystrokes and shortcuts for kerning, leading, alignment, picture sizing etc. were automatic for me. But another version or two and it was broken again with new apple OS versions, so another $300 to get it working again, but I just can't justify that kind of money in the future for the amount of use.

I also have hundreds of design drawings that I would do in Illustrator since most of our manufacturing items are 2d-ish, but even there I don't need it that often. I'm using an old CS6 version but I figure that will get busted by the OS sometime in the not too distant future.

To make a long story shorter, I kind of prefer the old model - buy it, own it with reasonable priced upgrades that you can put off either until it breaks due to OS or new features are worth it. I suspect that will be where we are with Resolve in a couple years and that's fine as long as it's in line with the purchase price - ie something like $50-$100 per upgrade. I would guess the upgrades would still happen every year but probably the previous version would still work so a not-so-hardcore user could skip a year or two.

 

[Jaime Vallés]

So, again, the $56/month is reasonable for what you get from Adobe. But imagine a world where every piece of software you have is on subscription and there's no limit to how much they can raise it. Suddenly you could be over your head in subscription fees and held hostage if the software stops working once you stop paying. Let's hope it doesn't come down to that.

That's definitely a concern, but then again I live in a rented apartment in New York City (which is in essence a kind of subscription) and I don't own a car, relying instead on public transportation / taxis / Uber (which is another type of subscription) so I'm used to everything costing more over time.

Currently, my answer to Adobe raising their rates is that I charge more for gigs.

 

[Steve Sherrick]

I voted for the Apple/BMD model because there wasn't an option for Buy it-own it without free updates. Free updates are great but probably not sustainable in the long run - mainly works while you are rapidly developing the software and generating new sales - but once things settle there will be a need for additional revenue to support development.

There is a poll option for that- Perpetual with yearly support fees. Avid for example. I pay $285 year for support plan. If I stop paying that I still own it but I have to stay at the last ersion that fell under that support plan. Avid also offers Subscription for those that want to go that route.

 

[mikeburton]

I think the Adobe subscription model is a relative bargain for the amount of tools that I use daily. I guess I don’t worry about the prices going drastically up because if it did there would be other options I could easily migrate to ie Resolve, Avid and FCPx. I’d export XML’s for my old projects and be done. That said, it may not be for everyone. I’m happy with it and know that I always have a choice. Their tools help me produce 3-5 videos a week and it’s such a small cost of doing business it doesn’t make sense to not have it. Oh, and it’s a tax write off so...

 

[PatrickFaith]

I prefer blackmagic's approach, Adobe is ok but way to expensive for most uses. Autdesk and nuke pricing has just gone insane, I have worked with autodesk to get some good deals but all the "kids" I know are going blender and unity. I am going 80% open source in general, but keeping up with versions and stuff is death. So far I like at least the direction avid is going, but the jury is not out on that. Apple is btw driving me crazy, I like apples pricing generally, but basically having no high end machines and completely ditching the server market is forcing me to drop everything apple (I guess that's the buy initial free updates, which I like, but their hw strategy is so horrible I am dropping apple).

 

[Hrvoje Simic]

But imagine a world where every piece of software you have is on subscription and there's no limit to how much they can raise it. Suddenly you could be over your head in subscription fees and held hostage if the software stops working once you stop paying. Let's hope it doesn't come down to that.

It's not about sucking the host dry, it's about assuring dependency, control and perpetual leaching.

I also have hundreds of design drawings that I would do in Illustrator since most of our manufacturing items are 2d-ish, but even there I don't need it that often. I'm using an old CS6 version but I figure that will get busted by the OS sometime in the not too distant future.

https://affinity.serif.com/en-gb/designer/