Collage by Arvelisse Bonilla Ramos. Photo by Arvelisse Bonilla Ramos, with AI-generated images in Photoshop.
Adobe Inc. has made its signature Photoshop software available on the web, in an attempt to increase user base and revenue from one of its most popular software programs.
Photoshop, a software application for image editing and photo retouching, is part of the Adobe Creative Cloud roster that includes video editing, graphic design, and social media applications available through individual or bundle paid subscriptions. The release includes the ability to streamline work from the web to the desktop version, according to a statement on Adobe’s website.
In addition, Adobe is adding Firefly functions to the latest rendition of Photoshop. Firefly, Adobe’s newest creative generative artificial intelligence model, allows users to add, extend, or remove material from photographs using simple text prompts.
“We are unleashing a new era of AI-enhanced creativity around the world with innovations across our product portfolio,” said Shantanu Narayen, chair and chief executive officer of Adobe, during the company’s third-quarter earnings conference call.
The launch also means the cancellation of Photoshop’s free beta-version that’s been available since June 2022. This is in line with news that Adobe will be raising prices on subscriptions plans starting Nov. 1, with price increases starting from $2 to $60, based on monthly or annual billing.
But the upcoming price surges aren’t spooking away subscribers of Photoshop yet, as the newest versions of Photoshop excites them.
“I think it’s really useful in the photography industry, specifically in product photography,” said Michelle Noguera, founder of multidisciplinary creative studio Tableau Studios in Los Angeles. “Even if those prices go up, I’ll still depend on those programs unless some other product comes on the market but those have been reliable for years.”
Also, analysts aren’t worried about the upcoming price hikes. “They’ve demonstrated that they have the ability to raise prices and that ultimately is good for their margins,” said Chuck Carlson, chief executive officer of Horizon Investment. “They’ll manage the price increase properly so it’s not to overly impact demand for their products.”
Adobe’s Digital Media Business, which includes the Creative Cloud applications and the Document Cloud, brought in $3.59 billion in the third quarter that finished on September 1. This is 14% more than the same quarter in 2022. Since 2020, Creative Cloud subscription revenues have gone up by more than 41%.
Adobe shares are up more than 55% year-to-date, compared with the tech-heavy Nasdaq Composite index, which is up 26% in the same period. The recent launch of the latest iteration of Photoshop did not immediately translate into a significant market increase for Adobe.