Subscription pricing models will decrease software prices in the short term due to the lower associated upfront costs
Los Angeles, CA (PRWEB) October 30, 2013
Graphics and photo imaging software has a buyer power score of 3.8 out of 5. The score reflects slight declines in software prices, a wide range of prices for different software options and a low total cost of ownership. Although these factors are favorable for buyers, negotiation power is somewhat limited by high market share concentration, which prevents significant price-based competition. High profit margins among major suppliers indicate strong brand power and limited competition. “The highly specialized nature of graphics and photo imaging software and a low availability of substitutes also limits buyer power,” says IBISWorld procurement analyst Erich Abellera. “Despite a wide range of prices, lower-priced software products are more geared toward consumer markets and are less common in professional settings.”
Buyers can receive discounts with volume licensing. Generally, the level of discounting increases with the number of licenses being purchased. Certain markets also receive additional discounts. “For example, graphics and photo imaging software publishers typically offer lower prices to government, education and nonprofit organizations,” says Abellera.
Software publishers are transitioning toward a subscription pricing model that may benefit some buyers, while increasing the total cost of ownership for others. Purchases of perpetual licenses have high upfront costs and are best for users who do not plan on upgrading the software often. The subscription model benefits users who do upgrade with each new software release, use multiple related products or prefer lower upfront costs. Because subscription pricing requires continuous payments, the long-term total cost of ownership can be higher. However, the shift toward subscription pricing is expected to reduce costs in the short term because of its lower initial cost. Major vendors include Adobe Systems Inc., Apple Inc. abd Corel Corporation. For more information, visit IBISWorld’s Graphics & Photo Imaging Software procurement research report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of graphics and photo imaging software, with a focus on desktop applications. This software is used for image editing, photo retouching, graphic design, illustrations and other visual media. However, this report does not include video editing, web design, desktop publishing or computer-aided design software. Suppliers include retailers and value-added resellers, and buyers can also purchase licenses directly from software publishers.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Vendor Financial Benchmarks
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.