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Australia dodges Adobe price increase

Australian photographers have been spared an Adobe Creative Cloud price increase, with the software giant upping prices by just under 10 percent despite recording record revenues and profit.

Generative AI cost Adobe, with customers picking up the bill.

The price increases demonstrates how Adobe’s monopoly on creative software solutions provides the corporation the ability to up the revenue without losing market share. And thanks to the Creative Cloud Subscription business model, Adobe can roll out a price increase with little notice, with it to apply from November 1.

The price increase is attributed to Adobe spending money on developing new features, a function that one would imagine is already factored into the business model. The extra spending covers the development of Firefly, an AI image generator now publicly available and comes with its own set of costs. Just don’t expect Adobe to lower costs of the Creative Cloud once the costs of developing Firefly is clawed back.

The Adobe Creative Cloud subscription price increase impacts the Europe, and North, Central, and South America markets, and is only applied to Single App Plans and the Adobe Creative Cloud All Apps Plan. It isn’t being rolled out in Australia, or for any user with a Photography Plan.

As is the case with subscription price increases, the cost is moving only by a few dollars yet it represents a 9.5 percent increase. The Single App Plans annual billed option is increasing in the US by US$2, from $20.99 to $22.99 per month; while the month-to-month option is increasing by US$3, from $31.49 to $34.49 per month.

The Creative Cloud Individual All Apps Plan is going up about 9 percent, a US$5 monthly increase for the annually billed option, from $54.99 to $59.99 . And US$7.50 increase for the month-to-month option, from $82.49 to$89.99 per month.

As previously stated, Adobe justifies the price increase by highlighting the ‘unprecedented number’ of new ‘creative capabilities’ that have been ‘unlocked’.

‘Over the last 18 months, we’ve unlocked an unprecedented number of creative capabilities including Denoise in Lightroom, for Creative Cloud in Premiere Pro and After Effects, and Share for Review in Photoshop and Illustrator, workflow enhancements and new products to expand the value of your subscription. To reflect the increased value that we have already delivered to our members and given new costs associated with generative AI content creation, today we’re announcing price updates for our individual and business offerings.’

Despite spending some extra cash on R&D to deliver customers new services, Adobe is crushing it financially. The corporation recorded a mouth-watering quarterly revenue of $4.89 billion (AU$7.60 billion) for the 2023 Third Quarter – 13 percent year-on-year growth.

‘Adobe delivered world-class margins and earnings in Q3, while making significant investments in our technology platforms,’ said Dan Durn, Adobe executive vice president and CFO. ‘Our innovation engine, global reach and strong operational rigor position us to capture the massive opportunities ahead.’

Adobe is also attempting to monetise Firefly through a ‘Generative Credit’ system, with tokens allocated to customers each month, and additionals available for purchase. Firefly, a standalone app that’s also included in Photoshop, includes Generative Fill, Generative Expand, Text to Image, and Generative Recolor. Each usage of these tools costs one credit.

For example, a customer with Creative Cloud Single App for Photoshop has 500 credits to use each month. They don’t roll over. Adobe Stock paid subscriptions – folks buying stock images – are also allocated 500 monthly credits. Free users receive 25 credits per month. Customers needing more credits are charged US4.99 per month for 100 credits.

It’s slightly confusing – Adobe is clearly experimenting with how to establish a business model for generative AI, with it geared particularly toward Adobe Stock customers.

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