Is there a correlation between Netflix and Adobe Creative Cloud? We think so. Adobe recently shifted to a cloud-based subscription model. They realized that b2b software was changing and they needed to adapt. It's not all that different to Netflix, which turned the entertainment industry on its head and blew Blockbuster out of the water. The question is, will you adapt like Adobe and move to Creative Cloud, or refuse to change and face the same fate as Blockbuster?

1. FROM PROSPERITY TO EXTINCTION:
A TALE OF BLOCKBUSTER PROPORTIONS
WHY ADOBE CHOSE TO GO THE WAY OF NETFLIX

2. “It is not the strongest of the species
that survives, nor the most intelligent
that survives. It is the one that is the
most adaptable to change.”
LEO MEGGINSON, ON CHARLES DARWIN’S RESEARCH

3. “Whatever happenedto Blockbuster Video?”
“I don’t know. I think
there’s still one in Alaska...”

4. David Cook takes his experience
with big data and creates the first
ever Video store.
His business model is revolutionary:
customize a store to suit the demographic
profile of a neighborhood.
goes on to become an industry
leader in both video rentals and late fees,
simultaneously bringing joy and pain to millions.
OCTOBER 19, 1985
DALLAS, TEXAS

5. Reed Hastings is slapped with a
$40 fee for returning Apollo 13 late.
He uses this as motivation to create
a new kind of video rental model.
Hastings co-founds
You may have heard of it.
FAST FORWARD TO 1997

6. Hastings approaches
CEO John Antioco and offers to sell him
ownership of $50 million.
Antioco turns him down,
claiming is a
“very small niche business.”
Y2K - 2000

7. DICTIONARY DEFINITION
i·ro·ny (noun)
A state of affairs or an event
that seems deliberately contrary
to what one expects and is often
amusing as a result.

8. is at its peak,
with 60,000 employees
in 9,000 stores worldwide.
Its market value is $5 billion,
with revenues of $5.9 billion.
2004
LIFE IS GOOD...

9. By 2007, is starting
to lose its shine. In Q3 alone, it
loses 500,000 subscribers.
2007
Oops,spoketoosoon!
Over the next 4 years, it loses
millions more to and
both of which are offering
direct-to-customer services.

10. Dish Network purchases Blockbuster at auction for
$233 MILLION, with the name mostly relegated to
Dish’s on-demand streaming service.
2011

11. Dish Network’s “Blockbuster@Home” television
package is renamed the “Dish Movie Pack.”
That same year, Netflix’s market value stands at
$32.9 billion.
2015
“OUCH!”

12. WHAT IS THE LESSON HERE?
2015
THIS IS ABOUT
FAILURE TO CHANGE.

13. recognizes a shift taking place
in the software industry and releases
Creative Cloud 2015.
In many ways, this signifies their “Netflix Moment,” with the company
releasing a subscription-based version of its software, making it more
affordable, flexible and accessible to customers than ever before.
2015

14. But, like all big changes, there has been push back and
a reluctance from some users to adopt Creative Cloud
after years of standalone software versions.

15. By the end of 2015, Netflix had around
75 million subscribers worldwide.
Despite the continued existence of
pay-to-own options for movies and
shows, Netflix has seen an unbroken
upward trend of subscribers over the
last 5 years.

16. It’s not just about the selection of
titles, or the attractive price for Netflix.
The biggest advantage of
subscription model is the ability for
users to tailor their use of the
product to fit their lives.

17. Similarities can be drawn between
and
Creative Cloud allows for instant access to software updates,
compatibility across multiple devices, and collaboration capabilities
that only come with a cloud-based platform.

18. Organizations no longer have to worry about employees sharing
licenses and bringing that liability down on the business.
No more productivity-killing days when you’re forced
to upgrade all your software on an office-wide scale.
Just safe, universal,
up-to-date tools
across every device
you’re using.

19. Don’t ignore where
your team is heading...
Don’t become the person still renting DVDs while
everyone else binge-watches the entire season.
Don’t insist on repeating the same actions
you have in the past, simply because that’s
how it’s always been done.

20. Keep your organization
connected, flexible, and alive
(RIP Blockbuster).
Connect with our
Adobe Team at Softchoice
to learn more about Creative Cloud
and the many subscription options
available.

21. ABOUT SOFTCHOICE
As a leading North American provider of IT solutions and managed
services, Softchoice combines the efficiency and reliability of
a national IT supplier with the personal touch and technical
expertise of a local solutions provider.
We are 1 of 7 Platinum Partners of Adobe, SAM Certified
and authorized to sell the entire portfolio of Adobe products.
With a dedicated team of Adobe experts, we are ready to help
with your questions.