Latest / Pricing Power Podcast with Fexingo: How Businesses Set Prices, Raise Margins, and Win Customers
How Adobe Priced the Subscription That Changed Software
In June 2026, Adobe's market cap sits above $250 billion, but a decade ago the company was fighting for its life. This episode dives into the 2013 pivot from selling Creative Suite as a $2,500 box to the Creative Cloud subscription model. Lucas and Luna walk through the math: how dropping upfront revenue for recurring $54 monthly payments initially cratered earnings, why Wall Street hated the move, and how Adobe's retention curve proved the subscription thesis. They also look at the backlash from professional photographers who felt trapped, and how Adobe adjusted pricing tiers to…
The skinny
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