Adobe’s subscription model

Before May 2013 there was always question about whether you actually owned software after you paid for it. But before May 6, 2013, you certainly had more control. That was the day Adobe switched to a subscription-only model for its creative software. Other companies followed suit, notably Microsoft with its office suite.

Adobe’s switch to software-as-a-service

Adobe Photoshop on a 3.5-inch floppy disk
For about three decades, Adobe sold software on physical media. In 2013, it switched to software as a service for its major products.

Adobe’s professional products were always expensive, and that frequently led to piracy. Requiring activation similarly to how Microsoft does reduced it. But switching to a subscription-based software as a service model would theoretically reduce piracy even more. It would make the software harder to pirate, but also reduce the up-front cost. You no longer had to pay four figures up front for Adobe software, just the cost of the first month’s subscription. And then each subsequent month of course.

In the long run, it would be cheaper to pay the four figures. Eliminating the option was good for Adobe’s profits. Apparently really good. Adjusted for splits and dividends, Adobe’s stock was trading at around $44 per share in May 2013. In March 2025, it was trading at 10 times that. A 4x increase in that timeframe would have been better than average. So increasing tenfold is really significant. While not unprecedented, it puts Adobe in elite company.

Loking at it another way, Adobe’s revenue for 2013 was just barely over a billion dollars. In 2024, it was $21.5 billion.

That said, I’m not a big fan of subscription models. I don’t want to pay for things in perpetuity. It’s cheaper in the long run to buy things outright, when you have the option.

There are alternatives to most of Adobe’s tools, but none of them have the acceptance that Photoshop and Illustrator have. That’s the reason Adobe has been able to get away with forcing everyone into a subscription model. And I don’t see it going away any time soon. Adobe is far too profitable to want to change back at this point.

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4 thoughts on “Adobe’s subscription model

  • May 7, 2025 at 2:28 am
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    do you know if dos and old dos games like kings quest are now free essentially if the company went out of business

    • May 9, 2025 at 1:55 pm
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      No, someone still owns the copyright. They may or may not know it. I’ve long argued that copyrights should require periodic renewal but Congress doesn’t care about my opinion when the likes of Disney are throwing their money around.

      • May 9, 2025 at 8:13 pm
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        i’f like to play kings quest and thexder

  • May 9, 2025 at 7:54 am
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    In 2025, practically everything will be subscriptions, paying full price for a unit has become expensive for the masses, I would say it was one of the smartest things (for the company) they created to have a practically infinite income.

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