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Adobe's gouging of consumers « Previous | |Next »
February 12, 2013

Adobe has long marked up its products for the Australian market--its pricing discrimination between regions. For example, in April 2012, it was revealed that locals would pay up to $1,400 more for the exact same software when they buy the new version 6 of its Creative Suite platform compared to residents of the United States. This meant that some Australian residents can afford to fly to the US to buy a US version of the software and fly back, for the same price they would pay in Australia for the software.

Adobe charges what it thinks the Australian market will bear. Adobe, along with Apple and Microsoft, have been summonsed by the House Committee on Infrastructure and Communications to face questioning at the IT pricing inquiry.

At a brief press conference in Sydney the chief executive of global software vendor Adobe, Shantanu Narayen, refused to directly address questions regarding price markups in which Australians pay far more than US residents for the company’s software:

Instead of directly addressing the question Narayen repeatedly emphasized that the company saw the future of its products as being its leased version of Creative Suite, termed Creative Cloud--the shift to online distribution and the cloud was the new strategy.

Even though Adobe has dropped the Australian prices of its cloud-based design products these are another form of gouging. If you buy Creative Suite, you pay Adobe once and can use the same software for years — products like Photoshop don’t go out of date that quickly and remain functional years after you bought them.

However, if you sign up for Creative Cloud, you’ll be paying Adobe, month in, month out, year in, year out, to use the same software forever, on a subscription basis. And you won’t own the software at the end of that point. You just lease it.

| Posted by Gary Sauer-Thompson at 2:02 PM | | Comments (1)


Adobe is going to continue to gouge its customers as much as it can get away with.