Exactly, Mr. Harley. My boss's father, the former CEO of his family of companies, often says that he would rather have $1 from 1 million people, than he would $1 million dollars from one person. It doesn't take a lot of deep reflection to figure out which is the better business model. Add to that concept "$1 per MONTH" from a million people and you have now effectively made your business a utility, like the electric bill. One that your subscribers would presumably have a hard time living without.
There are exercise/workout businesses now whose entire business model is making their monthly fees so low that people won't quit - even though 80% of their members NEVER come in to workout. What does the business care? They'd rather get their money for nothing (and their chicks for free). Imagine being a software developer and selling a high ticket piece of software. Maybe 3 out of 10 people who want your product will justify the high cost and purchase it. As soon as one version is released you need to start working on the next, with only the revenue of the previous version (and upgrades to it) to support your efforts. How much better would it be to make a subscription model, where 10 out of 10 people who want it could afford your product and you will have a known amount of money coming in next month... and the month after that... that you can use to accurately project costs and profits. The thing I think we all worry about is how high the monthly subscription rate will go, particularly with a product that has virtually no competition like Photoshop. On Sun, Apr 26, 2015 at 10:50 AM, steve harley <[email protected]> wrote: > On 2015-04-24 23:45 , Bob W-PDML wrote: >> >> A better analogy is photocopying a book rather than buying it, and >> photocopying it is a lesser crime than stealing it. But still a crime. > > > right, it's a license violation, not a theft > > i proposed a theory many years ago that Adobe purposely tolerated the > widespread "pirating" of their large collection of fonts because it made > their fonts ubiquitous, and it supported their other offerings > > the subscription model is not so much about license violations, though, it's > because it is harder and harder to excite people about buying the next > version when their apps are more or less feature-complete; "death of print" > has something to do with it as well; revenue from the apps in Creative Cloud > apps was on a long-term revenue slide when the subscription strategy was > launched > > > -- > PDML Pentax-Discuss Mail List > [email protected] > http://pdml.net/mailman/listinfo/pdml_pdml.net > to UNSUBSCRIBE from the PDML, please visit the link directly above and > follow the directions. -- Life is too short to put up with bad bokeh. -- PDML Pentax-Discuss Mail List [email protected] http://pdml.net/mailman/listinfo/pdml_pdml.net to UNSUBSCRIBE from the PDML, please visit the link directly above and follow the directions.
