The Consumer Unfriendly Business Model

Adobe-LogoAdobe has announced a new business model for Photoshop, Illustrator, Premiere and their other products. No more sales. Adobe’s creative products will now be leased! Your financial obligation will continue each and every month as long as you use the product.

There’s more and more of this happening all the time. It’s not a good trend for consumers.

Here’s Adobe’s problem. These are mature programs. There are some, but not many, improvements with each update. Businesses balk at spending big bucks for little return.

Microsoft faces the same scenario with Office. They’re adding a cloud based licensing product while maintaining the purchase option.

This doesn’t happen solely in software. I remember speaking with the father of a child with diabetes at a JDRF function. His worry: the majority of research was going toward treatment, not cure!

A cure leads to one sale. Treatment produces a continuing revenue stream. That’s great for the producer. It sucks for those who are diabetic.

Producing mature products that work well and last forever is not always in the best interest of business. I’m not sure how to fix it or if it can even be fixed!