Subject: November Newsletter - Why you'll be subscribing to music software soon

Hi Friend,

Welcome to my November 2015 Newsletter.

Most Pro Tools users hated the fact that Avid introduced a subscription tier for the latest version, but this looks like a growing trend in audio software of all kinds.

Here a quick look into the future and how this may effect your software decisions. 

What Audio Software Developers Face
1. It's a saturated market. Many software developers are either struggling or on the verge of struggling because the market has become saturated with basically the same products. There's plenty of DAWs to choose from, and just about every plugin developer has a version of pretty much the same plugs. After all, how many 1176 and LA2A plugs do you really need?

2. It's a limited market. Music, and specifically audio, is a fairly small niche market. There's a limited number of customers for software and and an even smaller number of pros to sell to. At this point, most developers are selling to the same customers or their competitor's customers, and there's not a lot of room for growth.

3. Except for DAWs. The one area that might see a spurt of growth is DAWs, as many Pro Tools users are weary of Avid's pricing techniques and slow feature introduction. This could set up another DAW for a mass migration at some point in the future.

4. Tablets have leveled off. A few years ago the great hope was that audio production would migrate to the tablet, which would bring a new round of audio software sales. That hasn't happened as most producer/engineer/musicians learned that a tablet is a better output device than input device.

Why A Subscription Is In Your Future
5. It's an economic lifeline. For most developers, once they make a sale they never see another dollar from the customer again. A subscription-based business model would mean that they'd see a steadier monthly income, and if the monthly fee was reasonable, even some growth as more people would sample the goods.

6. It will be gradual though. You'll start to see "buy or subscribe" tiers (like Exponential Audio has) that will ease the developer and the customer into the subscription model, rather than making it a take-it-or-leave-it decision.

7. It's a trend that will eventually reverse. It's going to take a while before subscription audio software becomes ubiquitous, but then you'll see a some renegade developer with a "buy it and own it" deal that will turn the industry back the other way again.

The Bottom Line
Audio software subscription is a trend that will you'll see more and more, starting at Winter NAMM in January. Avid, Slate Digital, McDSP and Exponential Audio (among others) are already there with more to follow.

As with everything, there will be winners and losers, both on the developer and the consumer side.

Choose your software vendors wisely, and if you love a product, get in on the ground floor while subscriptions are reasonable, then make sure you monitor the costs every month! You may find you're paying a lot less in the end, at least for now.

If you've read through to the end, you now know a little more about our Music 4.0 world than the majority of people in the music business today. Aren't you glad you subscribed to my list?
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Have a great Thanksgiving,

Bobby
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