There’s a possibility that Final Cut Pro and Logic Pro for iPad are not the last Pro Apps to be offered by a subscription-based model. There’s a solid chance that the desktop apps will be switched to this model as well. Would you pay a monthly fee for using FCP?
Subscription-based for the Pro App on iPad
As the dust of the bombshell Apple dropped a few hours ago starts to fade (and we’re talking about the announcement of Final Cut Pro and Logic Pro for iPad), many Apple loyal users are concerned that the company is switching to a subscription-based model instead of a one-time purchase. Although the monthly fee for FCP for iPad and Logic Pro for iPad is pretty attractive ($5 per month or $49 per year), in the long run, it would cost you more. Currently, the desktop version of FCP costs a one-time fee of $300, and $200 for Logic Pro. That’s not too much for what you are getting. However, if these desktop apps would be subscription based, we can expect a cost of $60-$80 per year (our assumption for FCP), and that would be definitely less economical than a one-time purchase.
Apple wants you to pay on monthly bases
A year ago, Bloomberg published an article stating that Apple has been working on a subscription service for the iPhone and other hardware products, a move that could make device ownership similar to paying a monthly app fee, according to people with knowledge of the matter. According to Bloomberg, the service would be Apple’s biggest push yet into automatically recurring sales, allowing users to subscribe to hardware for the first time — rather than just digital services. However, Bloomberg emphasized that the project was still in development. Nevertheless, yesterday we got proof that Apple s aiming in that direction, by allowing its top Pro App to be available only to paying subscribers.
Is it good or is it bad?
Well, it depends. Basically, a lot of users don’t like to pay each month. The main reason: it costs more. For instance, would you prefer to buy the FCP iPad app for $150, instead of paying each year $50? The answer is obvious. On the other hand, those who need the app per project could benefit from the monthly-based fee. Moreover, when a software company establishes a subscription-based model, in most cases, it feels more obligated to constantly push updates. And that’s what FCP needs the most. Anyway, let’s see how professional content creators will react to that. What would you prefer? FCP subscription-based, or one-time fee?
Subscription based models affect users according to the users’ revenue streams and their respective sustainability and financial strength in the industry. Those with high revenue streams won’t care; however, most of the users will probably object to this business model, which was introduced by Bill Gates when he created what has turned into lifetime annuities with Microsoft products requiring constant upgrades and, in some cases, more than one per year. I personally dumped Word and Excel as soon as Apple included similar applications with the purchase of an Apple computer. Granted, I am not in the accounting nor writing business and hence, did not feel those applications to be essential to my business since they are just communication tools to me. I am also involved in music and just recently, Waves after selling me some of their audio plugins based on a “lifetime ownership” contract, notified me that if I wanted to keep using my purchased Waves Plugins, I had to join their subscription model and hence, effectively cancelling their original business contract, which raises serious doubts about the company’s client strategy. I dumped my Waves Plugins and switched to others just as good and better in some cases based on what I felt was a breach of contract. A subscription model may scare those starting in the business and force them to patronize another company but at the end of the day, the key to Apple’s success with Final Cut will be Apple’s strategy, energy, and willingness to step up to the plate and raise it to the top of the competitive mountain if they decide on Bill Gates’ lifetime of updates. If Apple’s Final Cut can compete with industry leaders, then it’s worth it. Logic Pro X is the absolute best value in a DAW. No other company offers a fraction of what you get in Logic for $199 and again, just like Final Cut, Logic Pro was somewhat dormant until recently when Apple fully integrated Dolby Atmos/Binaural functionality into Logic and now I see well-established audio engineers using Logic. If Apple places Logic in a subscription model, they better plan to compete and perhaps attempt to unseat Pro Tools as the industry standard since they may dilute or eliminate the “value component” from Logic. Those who from the get-go bought Word, Excel, Office, etc., may be shocked if they do the math on what they have paid for throughout the years. Apple has been able to attract buyers by offering many great apps included with the purchase of their computers. Students in high school and college may buy the “Pro Apps Bundle for Education”, which includes Final Cut, Logic Pro, Compressor, MainStage and other good apps included with the computer for $199! Try to beat this if you are trying to establish yourself in film or audio.
My analysis is that like or not subscription based
Gives a steady revenue stream which funds active
And continuous development adding new features
And functionality like Adobe subscription model.
Creators benefit in the long run from the continuous
Development life cycle. With paying one price along with revenues lost to piracy the development life cycle might add new functionality semi annually or annually vs Adobe which updates every month or so with new features and functionality. This model and development life cycle is win win for both end users and the developers.
Only if existing purchasers get a credit if free months equivalent to the full price divided by the monthly rate.