Latest / Pricing Power Podcast with Fexingo: How Businesses Set Prices, Raise Margins, and Win Customers
How Adobe Priced Its Way Into a Subscription Empire
In this episode, Lucas and Luna examine Adobe's 2013 decision to abandon perpetual software licenses for a subscription model. They explore how the company navigated customer backlash, transformed its revenue structure, and turned a risky bet into a multi-billion-dollar annuity. Key numbers include Adobe's shift from 80 percent perpetual revenue to over 90 percent subscription, a 400 percent increase in market cap over five years, and the strategic pricing of Creative Cloud tiers. The hosts also discuss the psychology of recurring revenue, the role of free trials, and how…
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