Adobe lawsuit: The FTC sues Adobe for making it hard to cancel subscriptions.
What specific practices led the FTC to sue Adobe?
The FTC sued Adobe for deceiving consumers by hiding the early termination fee for its most popular subscription plan and making it difficult for consumers to cancel their subscriptions3. Adobe pushed consumers toward the "annual paid monthly" subscription without adequately disclosing that canceling the plan in the first year could cost hundreds of dollars.
How has Adobe incorporated AI into its business model?
Adobe has incorporated AI into its business model through the development of Adobe Firefly, a generative AI model integrated into its popular photo editing tool Photoshop26. Additionally, Adobe Sensei GenAI is used for personalization at scale, and Adobe GenStudio for Enterprise allows businesses to generate custom content at scale, eliminate repetitive manual tasks, and increase speed to market1.
How has Adobe's shift to a subscription model affected its revenue?
Adobe's shift to a subscription model has significantly impacted its revenue. Since the transition, Adobe has experienced a steady increase in subscribers, leading to consistent revenue growth3. The subscription model has also provided Adobe with a more predictable and stable revenue stream, as seen in its annual revenue of over $12.87 billion by the end of 2020.