Adobe's unexpected pricing strategy sparks debate, yet demonstrates a clever strategic approach
In a bold move, Adobe has upped the ante with its Creative Cloud subscription model, sparking backlash among its creators. Originally launched in 2013, the cloud-based platform marked the end of one-off payments for software ownership and the arrival of recurring subscriptions. While regular updates and cloud features were welcome additions, the ongoing costs have become a major pain point for many, especially freelancers and small studios.
However, controversy surrounding Adobe's practices reached new heights when the US Federal Trade Commission (FTC) took an interest, leading to the exposure of damaging internal communications, including an executive likening hidden cancellation fees to "heroin for Adobe."
Naturally, the company has announced yet another notable change to its pricing: one that could push more users to explore other options.
A New Reality: No More All-Apps Subscription
As of June 17, Adobe will discontinue its Creative Cloud All-Apps subscription in the USA, Canada, and Mexico, in favor of two new tiers: Creative Cloud Pro and Creative Cloud Standard. The smartest move here is in the default migration path.
Existing All-Apps subscribers will automatically be transferred to the more expensive Creative Cloud Pro plan, which comes with an extra costs of $10, $15, or $120 annually compared to their current subscription, depending on the billing period. This higher tier boasts expanded AI capabilities, including unlimited "standard" generative features and 4,000 monthly credits for "premium" generative options like text-to-video.
Meanwhile, for those who prefer the lower price, Adobe offers Creative Cloud Standard, available at a slight discount compared to the current All Apps subscription. However, this lower-cost plan comes with restrictions: 25 generative AI credits monthly versus the current 1,000, and access to mobile and web app functionality will be limited.
The Sharp Sting of Increased Costs
Adobe's software is undeniably top-notch, with its generative AI features reportedly drawing wide usage. And the company maintains that the more expensive Creative Cloud Pro subscription offers added value beyond the AI enhancements.
But with the higher price tag serving as the default option, many believe that Adobe is attempting to push users into a corner. The fact that they've made the higher-priced plan the default choice reeks of an lack of confidence in their ability to convince customers of its worth—and raises questions about their ultimate intentions.
Just to clarify, the kind folks at Adobe have always been gracious and genuinely passionate about helping creatives fulfill their dreams. But with pricing decisions like these, the company risks fostering a negative image instead.
Echoes of Streaming Giants
Does this scenario sound familiar? It should, as Adobe's approach mirrors the strategies employed by streaming juggernauts like Netflix and Amazon Prime. Their repeated hikes in costs and introduction of lower-cost, ad-supported tiers with reduced functionality bear striking resemblances to Adobe's move.
Like Adobe, these streaming services increase the standard subscription price while offering more streamlined, less expensive options, giving the illusion of choice while steering the majority of customers toward the more expensive tiers.
Netflix, for instance, has bumped up its standard subscription price several times, all while launching a cheaper ad-supported service—at least until the price subsequently rises. Similarly, Prime has continued to raise costs while maintaining a video-only option. Though these changes may seem like providing alternatives for consumers, they ultimately lead to across-the-board price hikes for everyone.
Adobe's approach could prove even more effective than that of the streaming titans. By making Creative Cloud Pro the default migration path, Adobe is leveraging inertia to sway most users into accepting the higher price—a tactic that may ultimately backfire.
The Rise of the Competition
As prices steadily escalate, professionals and organizations may begin reevaluating their software needs, leaving the door wide open for Adobe's competitors. There's a wealth of alternatives out there, including:
GIMP
- Use Case: As an open-source alternative to Photoshop, GIMP offers layering, brushes, masks, plugins, and PSD file support
Inkscape
- Use Case: Inkscape serves as a free, open-source alternative to Illustrator, focusing on vector graphics and calligraphy
Scribus
- Use Case: A viable choice for those seeking a desktop publishing platform (InDesign alternative), Scribus caters to professional layouts, CMYK colors, and PDF creation for magazines, brochures, and PDFs
Affinity Suite
- Use Case: Professional-grade photo editing, vector graphics, and layout design
- Tools: Affinity Photo (Photoshop alternative), Affinity Designer (Illustrator alternative), Affinity Publisher (InDesign alternative)
Canva
- Use Case: Graphic design and templates
- Features: Over 250,000 free customizable templates and a user-friendly interface
Nitro PDF Pro (and other PDF editors)
- Use Case: PDF management (Acrobat alternative)
- Features: Comprehensive toolset for small teams and businesses
It remains to be seen how far Adobe will push its loyal user base, but as costs continue to rise and viable alternatives exist, even the most dedicated customers may eventually hit their limits.
For more options, see our roundup of the best graphic design software.
- The Creative Cloud Pro plan, Adobe's new subscription tier, offers expanded AI capabilities, including unlimited standard generative features and 4,000 monthly credits for premium ones.
- Existing All-Apps subscribers will automatically be transferred to the Creative Cloud Pro plan, which comes with an extra cost compared to their current subscription.
- Adobe's generative AI features have drawn wide usage among designers, making its software top-notch.
- The new Creative Cloud Standard plan, available at a slight discount, comes with restrictions on generative AI credits and limited access to mobile and web app functionality.
- Content creators, especially freelancers and small studios, have expressed concerns about the higher costs of the Creative Cloud Pro subscription, questioning Adobe's intentions.
- Adobe's announcement to discontinue the Creative Cloud All-Apps subscription will impact users in the USA, Canada, and Mexico, starting from June 17.
- Streaming giants like Netflix and Amazon Prime have adopted similar strategies to Adobe, repeatedly raising costs and offering lower-cost, ad-supported tiers with reduced functionality.
- Some believe that Adobe is attempting to push users into a corner with the higher-priced Creative Cloud Pro subscription serving as the default option.
- As prices continue to rise, professionals and organizations may explore alternatives to Adobe's software, opening the door for competitors like GIMP, Inkscape, Scribus, Affinity Suite, Canva, and Nitro PDF Pro.
- The graphic design software landscape has become increasingly competitive, giving designers more options to meet their needs and budgets while reducing their dependence on Adobe's products.
