] HipMojo.com » Adobe Adapting to the Times

Adobe Adapting to the Times

Some time ago I wrote a post explaining why I sold Adobe.  The company is great and I love their acquisition of Macromedia and all, but I just saw piracy and mainly free services as a major threat to their business.

Today their CEO Bruce Chizen came out and said that the company will launch a free, ad-supported Photoshop.  This is wise and dangerous: it’s wise because the company realizes that nowadays no one is on a computer but not connected, and once you are connected, everything is a click away, including pirated versions or free versions of a company’s software.  And since people nowadays spend 25% of their time online but marketers still only spend 10% of their ad budgets online, there is a large opportunity right there.  But, for a company that is worth $20B to come out and offer free services for a one-time core, money-making application, it sends a message that it sees a major loss of pricing power and needs to react.

We’re probably reading a bit too much into this, but you can make sure that MSFT and Google are keeping a close eye on this.

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Posted By: Ashkan Karbasfrooshan | Mar 2nd

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