Adobe changes to new product cycle and announces CS version 5.5

[mikkowilson]

SAN JOSE, Calif., — April 11, 2011 — Adobe Systems Incorporated (Nasdaq:ADBE) today announced the new Adobe® Creative Suite® 5.5 product line (see separate releases), enabling designers and developers to target popular and emerging smartphone and tablet platforms, as the revolution in mobile communications fundamentally changes the way content is distributed and consumed. Substantive advances to HTML5, Flash authoring, digital publishing and video tools as well as new capabilities that kick-start the integration of tablets into creative workflows, anchor the new Adobe Creative Suite 5.5 product family.http://www.adobe.com/aboutadobe/pressroom/pressreleases/201104/041111AdobeCreativeSuite5.5.html


Adobe News Room: http://www.adobe.com/aboutadobe/pressroom/


Key new features of CS 5.5 Production Premium listed here: http://www.adobe.com/products/creativesuite/production/features._sl_id-contentfilter_sl_features%2Bby%2Bversion_sl_new%2B since%2Bcs5.html

Looks like there's some improved workflow tools for dual-system audio, audio editing, and native support for RED.


And apparently you don't have to buy it!

Today also sees Adobe debut an affordable and flexible subscription-based pricing plan, attractive to customers that want to get current and stay current on Creative Suite products, have project-based needs, or try the software for the first time. New Subscription Editions ensure customers with active subscriptions are always working with the most up-to-date versions of the software, without the upfront cost of full pricing. Now customers can use Adobe Production Premium CS5.5 for as little as US$85 per month.http://www.adobe.com/aboutadobe/pressroom/pressreleases/201104/041111AdobeCS5.5ProductionPremium.html


Full text of the CS 5.5 Production Premium press release is in the article in the DVXuser News area here: http://www.dvxuser.com/V6/content.php?15-Adobe-changes-to-new-product-cycle-and-announces-CS-version-5.5

- Mikko

[keylight]

Ugh. Really? Adobe? Really?

No thanks.

[Fohdeesha]

Yeah....I have never ever seen them charge for a dot release, that is kind of ridiculous.......

[Lee Saxon]

pffffffffffft yeah right

[scapsinger]

They have charged for dot releases many times. The Design and Web suites have this pretty much every time a new version of Acrobat comes out.

Also, there was Premiere 6.5, After Effects 6.5, Premiere PRO 1.5 (when they added HD support, among other things). The Production CS suites, of course, have not had a dot release like the web/design suites have, so we've had CS2/CS3/CS4 without a paid upgrade.

That being said, I'm not sure there's enough in the new package for me personally to warrant a paid upgrade. The Audition swapout for Soundbooth and the new audio workflows there and with multiple audio sources will be nice, but I'm not sure I can't wait another 12 months when the release CS6.

If it was a $199 upgrade for CS5 owners, I'd do it. If it was a $299 upgrade, I'd really have to consider it heavily (mainly for Audition). But at $399, I'm not in a big hurry.

The subscription plan is a great idea. I can think of lots of times I'd want to bring on another/multiple editors who normally work in Final Cut or Avid, and this is perfect for that. If it was $49 a month with 1-year commitments, I'd really consider doing it myself. But with a predictably $400-$700 upgrade each year, it doesn't make sense mathematically.

At any rate, I think this all moves in the right direction, just not exactly the right pricing. If having prices go up a bit helps to ensure constant development and support of the Adobe apps, well...isn't that kind of what we all want? Ask a current Final Cut Studio if they'd be willing to pay for an upgrade opportunity once a year, and I bet right now it looks pretty appealing. :)

[dregenthal]

I only just did my CS4 to CS5 upgrade within the past 6 months, accordingly I won't consider another paid upgrade for (at least) another 6 months . . .
Probably a no brainer for some -- a few of 'em are nice features but I'm "out" for now, although I do agree with scapsinger . . . I'd do it for $199.

P.S I already have Audition . . . went through that exercise a few versions back.

Just goes to show though, for some . . . if they put $5 (or more) per gallon on the pump we'd pay it.

[keylight]

Actually, I've found that upgrading on an every other release seems to work best for me. I went from CS3 to CS5. And unless CS6 has something absolutely earth shattering in it (it won't) I'll wait to CS7 (at least) to do an upgrade. Adding .5 releases and a subscription model won't get me to buy anything.


Now customers can use Adobe Production Premium CS5.5 for as little as US$85 per month.Now compare the pricing schemes:
- CS3 releases on 4/20/2007 for $599 upgrade
- CS4 releases on 8/23/2008 for $599 upgrade (14 months later)
- CS5 releases on 4/10/2010 for $599 upgrade (18 months later)
- CS5.5 releases on ??/??/2011 for $1020/year (12-14/15/16? months later)

Wow. What a deal. Can I please have 2? Of course if you're like me and skip a version, then the upgrade from CS3 to CS5 cost you $599, instead of $2720 (which is what it would have cost under a subscription model).

So, how will the model actually work? Will they still offer full version number entry and upgrade points? Probably yes on entry points, no on upgrade points. I could picture them making people pay to upgrade based on the following rate:

Number of months since your version released X monthly subscription rate = your price to upgrade. And once the upgrade price is higher than the full price, you'll just pay the full price.

SO kiss those upgrade prices goodbye.....

Anyone know of a Gimp like alternative to After Effects? Don't need it today, but tomorrow?

[Mike Harvey]

The upgrade from CS5 to CS5.5 is $399. Not sure I'm down with spending 2/3's the price of a full release upgrade for a .5 upgrade a year later.

[Elvis Deane]

I've only got AE, so the thought of paying $179 to get the Warp Stabilizer when I've already got the capabilities in Syntheyes is a bit hard to swallow. The camera blur looks nice, but hard to justify that unless it's on par with some of those third party lens blur plugins.

[mcgeedigital]

The warp stabilizer has to be seen to believed.

I saw a prerelease running on a Mac Book Pro and it was ridiculous.

[Kindredmachine]

Awesome, got my pre-order in today at Adobe for 5.5 :-) Confirm email says shipping May 3rd.

[Jisgren]

Awesome, got my pre-order in today at Adobe for 5.5 :-) Confirm email says shipping May 3rd.
I have to say I am very impressed with Adobe customer service/marketing. I saw the announcement here on the forum and went "Oh Crap! I just bought CS5 PP a week ago" No sooner than I clicked into email I already had a message from Adobe waiting for me with instructions to get the free upgrade! I figured that they would do something for a recent purchase, but I expected to have to root around the website and be on hold for 2hrs to get it. Painless process!

[Razz16mm]

I like the new subscription model. For about the price of a grande latte a day, you have the use of the full CS5.5 deluxe package with only a 1 month cost up front.

[keylight]

I like the new subscription model. For about the price of a grande latte a day, you have the use of the full CS5.5 deluxe package with only a 1 month cost up front.

True, but that way you can't have your Adobe and drink your grande latte too. Stop paying Adobe and you the software stops working.

Worse still, you end up paying more than double the normal upgrade price. Their normal release schedule has a new version coming out every 16 months on average. So at $85/month x 16 months... you pay $1360 over the life of a full version instead of $599. You are much better off financing an upgrade purchase on a credit card. Here's the proof:

Assume your credit card carries a high 20% APR. With a $599 charge you'll pay $85 each month for SEVEN months and on the eight month you'll pay off the remaining balance of $47.67. Grand total over 8 months: $642.67. $599 principal, $43.67 in interest. The next 8 months are FREE. But buying on Adobe's subscription (loan shark) model, and you pay the $599 on the principal and then keep on paying another $761 in interest.

So which is better, $43.67 in interest or $761 in interest?

This kind of super high interest rate (that's what it is) used to be called usury. Apparently today it's called business.

[J Davis]

Great to see Adobe switching things up ... thanks for posting Mikko

[Mike Harvey]

True, but that way you can't have your Adobe and drink your grande latte too. Stop paying Adobe and you the software stops working.

Worse still, you end up paying more than double the normal upgrade price. Their normal release schedule has a new version coming out every 16 months on average. So at $85/month x 16 months... you pay $1360 over the life of a full version instead of $599. You are much better off financing an upgrade purchase on a credit card. Here's the proof:

Assume your credit card carries a high 20% APR. With a $599 charge you'll pay $85 each month for SEVEN months and on the eight month you'll pay off the remaining balance of $47.67. Grand total over 8 months: $642.67. $599 principal, $43.67 in interest. The next 8 months are FREE. But buying on Adobe's subscription (loan shark) model, and you pay the $599 on the principal and then keep on paying another $761 in interest.

So which is better, $43.67 in interest or $761 in interest?

This kind of super high interest rate (that's what it is) used to be called usury. Apparently today it's called business.

No one is forcing you to go the subscription route, and I could see a scenario where it would make more sense. Say you need to bring in a few freelancers for a short term project, but don't have enough licenses as it is. Right now, you can install CS5 on two computers, but can only use one computer at any given moment. If you need to run it on three or four machines for a couple of months, it makes WAY more sense to go the subscription route, then buy 3-4 more copies of CS5.5. 4 new full copies = ~$6k. 4 copies via subscription = $340/month x 3 month project = $1020.

[Andrew McCarrick]

The subscription rate makes perfect sense for somebody cutting their own indie films. You only have to keep the subscription active for 1 month every 6 months. So say you start in May, you cancel at the end of May... You'd need to renew by the beginning of November to keep the subscription active for another 180 days. Say you shoot a film in August, and edit in August, September, and October. You only paid for 5 months out of the year, because you only used it for 5 months out of the year. If you don't shoot anything the following year, you only need to pay for 2 months, that following year. 7 total monthly payments over 2 years.

If you're constantly editing and doing freelance work... sure it makes no sense to do it that way.


EDIT: Now that I think about, you can actually knock off the November payment, since you had paid for those three months that you actually edited the film (to keep the subscription active)... so 6 payments over two years.

[keylight]

The subscription rate makes perfect sense for somebody cutting their own indie films. You only have to keep the subscription active for 1 month every 6 months. So say you start in May, you cancel at the end of May... You'd need to renew by the beginning of November to keep the subscription active for another 180 days. Say you shoot a film in August, and edit in August, September, and October. You only paid for 5 months out of the year, because you only used it for 5 months out of the year. If you don't shoot anything the following year, you only need to pay for 2 months, that following year. 7 total monthly payments over 2 years.

If you're constantly editing and doing freelance work... sure it makes no sense to do it that way.


EDIT: Now that I think about, you can actually knock off the November payment, since you had paid for those three months that you actually edited the film (to keep the subscription active)... so 6 payments over two years.

Of course, that's not how it really works. Once subscribed and your account is set up to automatically debit your account, people don't bother canceling. In your scenario, why even start in May if you aren't going to shoot until August?

And is there a value to restarting a subscription at the 6 month point for 1 month, and then suspending it again? I know about their 6 month suspension rule, but what's the harm in just letting it expire and not re-subscribing until you need it again, say 10 months later for example? I know that this sounds like I'm actually making an argument against myself, but I'm not. Because again, most people will end up never canceling their subscription. There are times when I won't touch a program for weeks, but then need it for a couple of hours. Whoops - did I suspend my subscription? Darn.

Adding, that the month to month option on the production bundle actually starts at $129. So using your scenario, $129 x 6 = $774. Full version upgrade price is $599.

And again, reality is that you either won't cancel your subscription, or will end up needing to restart it much more often than you plan.

[Andrew McCarrick]

Well all your talking about is upgrade pricing... what about people that don't even own a copy of premiere pro yet... like me.

[Mike Harvey]

...Because again, most people will end up never canceling their subscription. There are times when I won't touch a program for weeks, but then need it for a couple of hours. Whoops - did I suspend my subscription? Darn.

Adding, that the month to month option on the production bundle actually starts at $129. So using your scenario, $129 x 6 = $774. Full version upgrade price is $599.

And again, reality is that you either won't cancel your subscription, or will end up needing to restart it much more often than you plan.

You sound like you assume that most operations are like yours. That simply isn't the case. Honestly, for a lot of folks it doesn't make sense to go the subscription route. But you assume it doesn't make sense for *anyone*. I'm pretty sure Adobe did some research into whenther this was a viable option or not before implementing this option. This subscription model seems to me a lot like renting any other piece of equipment. For some folks renting makes no sense. For some folks buying makes no sense. Just because one doesn't make sense to you and your business model doesn't mean it doesn't make sense for anyone else.

Look, if it doesn't work for you, don't do it. No one is forcing you to. But do don't assume it doesn't work for anyone else. All your numbers are based on upgrades... not everyone has that option of upgrading and need to buy full copies. I can see several scenarios, including the one I already described, where it makes more sense to subscribe the buy new full copies.

[keylight]

No one is forcing you to go the subscription route, and I could see a scenario where it would make more sense. Say you need to bring in a few freelancers for a short term project, but don't have enough licenses as it is. Right now, you can install CS5 on two computers, but can only use one computer at any given moment. If you need to run it on three or four machines for a couple of months, it makes WAY more sense to go the subscription route, then buy 3-4 more copies of CS5.5. 4 new full copies = ~$6k. 4 copies via subscription = $340/month x 3 month project = $1020.

I think your example is probably the closest one can get to arguing in favor of an end user going with a temporary subscription model. (Of course, those are 50% more expensive than the 1 year subscription. The $1020 price tag is actually $1560). But I think it breaks down a bit when you look at what actually happens when you bring in freelancers for a short term project.

It has been my experience (personally hiring freelancers and producing with companies that hire freelancers) that freelancers hired for a particular job are hired for a particular skill set. Got a big, multi episode show that needs editing? You hire in editors who will edit. They won't do compositing, encoding, illustrating.... They will need editing software (no Photoshop, Illustrator, Encore, After Effects). That stuff is going to be handled by other people. (For a show that needs multiple editors though, you rent turn key Avids and hire Avid editors.) Yes, you can get subscription of PS, IL, AE, PP all on their own. And maybe that's what you would do. In that case the model would work. But I think that's the rare exception really.

Quality, Speed, Price - pick two for a mid-level budget, pick one for a small budget. For a very small budget work, there's never money to hire multiple freelancers. And when you do get to hire a freelancer, you hire someone who brings their own tools (which of course they already own since that's how they learned them).

I think it is the rare instance where a subscription model will end up working.

Still, if it works for you and saves you some money - fantastic. Of course, Adobe is banking on the new model as a way to increase revenue.....

[keylight]

Well all your talking about is upgrade pricing... what about people that don't even own a copy of premiere pro yet... like me.

Yes, that is a good question, which I address below. It's still a lot cheaper to buy if you factor in upgrading just once later on.


You sound like you assume that most operations are like yours. That simply isn't the case. Honestly, for a lot of folks it doesn't make sense to go the subscription route. But you assume it doesn't make sense for *anyone*. I'm pretty sure Adobe did some research into whenther this was a viable option or not before implementing this option. This subscription model seems to me a lot like renting any other piece of equipment. For some folks renting makes no sense. For some folks buying makes no sense. Just because one doesn't make sense to you and your business model doesn't mean it doesn't make sense for anyone else.

Look, if it doesn't work for you, don't do it. No one is forcing you to. But do don't assume it doesn't work for anyone else. All your numbers are based on upgrades... not everyone has that option of upgrading and need to buy full copies. I can see several scenarios, including the one I already described, where it makes more sense to subscribe the buy new full copies.

I never get it when I see people commenting, "no one is forcing you" or "don't assume" to other people's posts. Of course no one is forcing or assuming.

I am simply pointing out that it probably doesn't make financial sense for MOST people in most situations. I believe there should always be a solid financial analysis behind every business decision. And the Credit Card example (although I loathe that kind of debt) makes it clear that under many circumstances, self-financing a purchase of the production suite is a better business decision.

Already Own + Every Upgrade VS Annual Subsctiption @ $85/month:

32884


Buy New + Every Upgrade VS Annual Subsctiption @ $85/month:

32885


Buy New + Skip every other Upgrade VS Annual Subsctiption @ $85/month:

32886


Already Own + Skip every other Upgrade VS Annual Subsctiption @ $85/month:

32887

These charts were based on Adobe's average of releasing a full upgrade every 16 months. The CS5.5 half release comes 13 months after CS5, so they may be switching to a 24 month cycle. The "Skip every other" charts take into account that it costs $200 (http://store.adobe.com/store/en_us/popup/software/creativesuite/production5/upgrade_eligibility.html) more to upgrade if you skip one version.

When all is said and done, if someone has deep pockets they can go with the annual subscription model without blinking an eye. They'll always get the latest and greatest. And for someone who really does only need it for only a few months - the month to month subscription does make sense.

But is that most people? Probably not.

For me, I'm running a business. Every penny spent is a penny not earned. At the end of the day it comes down to what I need to get my work done and earn a living. I don't always need the latest and greatest. Sure, who doesn't want the toy? But it isn't what I need and it isn't good for business.

That's it in a nutshell for me (and probably for a lot of others). Everyone is making good points. For some a subscription will make sense. For most, I suspect it won't.

I hope the point of view I have presented at least gets people to sit down and think over the options before making a decision.

EDIT: Another thought. You can sell and transfer (http://kb2.adobe.com/cps/152/tn_15281.html) your purchased license later. So that $1500 CS5 you bought and are no longer using, you can easily sell it for $800-900. After all, no one is forcing you to keep it. Don't assume you have to keep the software. :)

You can't do that with a subscription.

[Mike Harvey]

EDIT: ...Don't assume you have to keep the software. :)

You can't do that with a subscription.

Touche :)

[scapsinger]

Touche :)

Agreed...although now keylight has given Adobe their next great idea to increase revenue (require a fee to transfer/reactivate a license by another user). KIDDING!! (I hope).

The subscription idea is fine for short term guys who don't have the suite, and perhaps as a way to convert trial downloads to purchases by way of a subscription.

Here's the deal...the trial versions are now "fully functional" for 30 days, meaning you could download the CS5.5 Production Suite, and have all the features (or perhaps not the 3rd party plugins) for 30 days to cut an edit. Running a little long on the edit? Want to extend your trial by a month to wrap it up? Only $129 - or whatever the price is. Don't need to buy the software just yet if you aren't sure, but hey, you can still finish your project.

As an active participant on the Adobe forums, I can't count the number of people who either a) complained about the limited-functioning trial version or b) got stuck in the middle of a project after 30 days and had no choice but to either start over on the project or purchase the whole $1,600 suite. So this isn't the most bang-for-your-buck option over the long term, but I think it's a great way to get people on board without demanding that they cross the $1,600 threshold.

That being said, I think Adobe is squandering an opportunity. If they made the software subscription $49 a month, it would be more attractive to everyone, either new or existing user. They could also probably bypass a huge chunk of their retail package shipments through the subscription. I know that I personally would be willing to pay $49 per month with an annual commitment knowing that they will have a new version or half version every 12 months (which they are publicly committing to do). If each new version was less and less innovative, I'd rethink it, but having upgraded to every new version of the suite since Premiere Pro 1.0, I've been happy enough to keep it up.

And having monthly subscription revenue would certainly make the accountants happy, rather than having a huge bump every 18 months. Much better I think, and better for the end user.

[Jisgren]

I wonder how the the new FCP pricing will impact CSx.x pricing going forward. $299 is very low for a so called " professional" NLE. Although listening to the press conference last night there are some interesting new feature, but a lot seemed to be pitched to casual, prosumers with the mutliple automodes.

[scapsinger]

Hard to say. From Adobe's standpoint, they have the Production Suite, which includes Photoshop and After Effects. Buying those two programs is virtually required for many of us, and if you're going to buy both of those, it's cheaper to buy them as the Production Suite. Do that, and now you own Premiere Pro (and Audition, and Encore, etc). Of course, Adobe would look pretty stupid if they marketed it as "Buy Photoshop and After Effects and get Premiere Pro FREE! But WAIT...that's not all!!"

But there's little incentive to try and make Premiere Pro DIRECTLY compete with FCP on price while many people have to buy those other apps anyway. And why should they, when everyone pays the going rate with Photoshop as it is?

And of course, it's still unknown how the pricing will ACTUALLY work for FCP. Is $299 the upgrade cost? Is there another price for buying new? What is actually included? How much is the suite going to cost when it's released?

I'm not an FCP editor (haven't been for...6 years?) but I'll say I didn't see anything "game changing" about the announcement. There were plenty of things that will be ground-shaking for FCP editors, but in the world of NLEs today, Avid and Adobe already do most of what FCP is planning to do in FCP X. Stuff like the 64-bit support (which is insane how long that took, considering Apple OS practically led the charge on 64-bit and video apps are so RAM hungry). Adobe has now been fully 64-bit on NLE (and After Effects and Photoshop) for 12 months, and there was the "multiple instances" support in CS4 to make use of all your system's RAM if you were on 64-bit Windows for a full 18 months before that.

So yeah, the current info about FCP leads no one to believe there is anything legitimately "game changing" in the world of editing, but it WILL be a huge benefit to current FCP editors to finally be on 64-bit.

Someone said something about Apple using this release to play catch up to Adobe in terms of playback and 64-bit support and other things...I suppose that's possibly true, and seems that way right now, but somehow I just think Apple must have something else up their sleeve. It would be a strange world to see Apple actually failing to leapfrog the competition like they pretty much always do with a new hardware or software release.