My thoughts on the Artlist acquisition and subscription model

laconstantedeplanck
laconstantedeplanck Posts: 111 Enthusiast

I've been reading comments of some Hitfilm users worrying too much about the possible pricing change towards a subscription model or even about Hitfilm Express saying goodbye. So let's add my point:

Even if Hitfilm goes towards a subscription model, which I agree usually means more money, you can always stick to the latest pre-subscription-model version of Hitfilm Pro or Hitfilm Express and use it forever. I mean, major versions of Hitfilm usually come with some cool new features, but game changer new features (ie The Foundry Camera Tracker or the 3D import maps addition) don't happen that often so you could use Hitfilm 16/2021 for a few years without any considerable lack of features.

Furthermore, those acquisitions don't change the whole company in a month. I mean, from this time on there'll be a plan to add new resources to FXhome, hiring new people, giving that new people the needed knowledge about the product, etc. Don't expect Hitfilm/Imerge or any other FXhome product to drastically change because of Artlist this year or even in 2022.

Let's don't forget that Artlist is not a software company, and it seems to me that people are comparing this acquisition with others on which the larger company buys a smaller company of the same niche to basically kill one of its competitors. And even on those cases, we've seen in the past companies respecting the product they owned ie Oracle buying Sun Microsystems and not killing MySQL as MANY people though it'd happen, myself included.

Just think that FXHome has a LOT of competitors out there. If Artlist is going to invest a decent amount of resources on FXHome is because they thing they'll get it in return. If they overprice Hitfilm without a dominant position in the market, then it's over. I mean, there's no way Hitfilm is going to be more expensive than the Adobe counterpart just because that makes no sense from a business point of view. Artlist wants Hitfilm to succeed even more, not to kill it by overpricing it.

I think if Artlist pushes Hitfilm into a subscription model I'm pretty damn sure they'll include the Artlist and/or Artgrid subscription. It might be interesting and even cheaper than today's combined price. That would make every artist using Artlist products to consider using Hitfilm over Adobe's After Effects or Blackmagic's Da Vinci.

A different story would be if Blackmagic (Da Vinci's software company) or Adobe itselft had bought FXHome, in which I think the destiny would be already settled.

Subscription model is not that bad. It just depends on the price. Think about Mocha Pro, for example. Hitfilm has been mostly used by enthusiasts and amateurs so that means its pricing must be attractive to those groups of people. Just consider that Adobe products are vastly used on professional works, so it makes sense Adobe's pricing is well above Hitfilm's as the target audiences are different. A professional movie studio can afford Adobe's pricing without issues.

The only sceneario I can imagine where Hitfilm gets a signifficant price bump is Artlist considering to address Hitfilm towards a more professional audience, but honestly I don't think this is ever happening. FXhome's niche is what it is and it performs outstandingly well, so I don't see the need to compete with Adobe.

Comments

  • Coldshadow25
    Coldshadow25 Posts: 16 Just Starting Out*

    I definitely agree that there is no certainty of what will happen. Plus, as you've said, there will be no significant amount of changes right away. I possibly see some prices changing in the future but I doubt Artlist's first order of business will be to alienate it's consumer base in hopes that it will get more money. Again, as you've stated, they need to compete with Adobe, Black Magic Design, and so on. Keeping Hitfilm as accessible as possible is the smartest move they could make moving forward. And there's a possibility with a bigger backer that Hitfilm could see substantial changes in the future for the better. It'll also probably be a good year or more before we see any real alterations either. It's definitely good to get in there and calm people's nerves.

  • triforcefx
    triforcefx United StatesPosts: 1,643 Moderator

    Here’s a little gem from Artlist’s press release:

    “FXhome’s addition helps position Artlist alongside companies like Adobe by providing a 360 video creation solution that includes both editing tools and assets,” said Artlist co-founder and co-CEO, Ira Belsky. “From now on, creators of all levels will find at Artlist everything they need to create amazing content, from innovative editing tools to the best digital assets”.

    “We have always considered ourselves industry disruptors,” said Artlist co-founder and co-CEO Itzik Elbaz. “We started by revolutionizing the licensing industry with our subscription-based model, and we made the FXhome acquisition in the same spirit. Always focusing on answering creators’ needs and giving value to our users, our mission is to provide cutting-edge creative tools and assets that empower and inspire people to express their ideas through video, no matter their level of expertise.”

    -

    Artlist is gonna do everything they can to make sure HitFilm and other FXhome products succeed. They also care about creators “of all levels”. This suggests to me that offerings like the free HitFilm Express won’t be going away any time soon… I’m sure if they looked at the numbers they would see that HitFilm and FXhome’s success has been driven by offering Express for free- both in user base, but also in sales of Pro software. Offering a free version of the product gives HitFilm a huge edge over Adobe (who doesn’t really have any free video products- these days they rely on being the “industry standard”) and allows them to compete directly with the free version of DaVinci Resolve.

    They’re also gonna do everything they can to get HitFilm into the hands of as many users as possible through marketing and other means. More users means more sales. The more they sell, the more great features they can develop, which makes them sell even more, which makes it so that they can actually REDUCE the cost of the software due to the economies of scale. If you made HitFilm for just a single user, it would still cost millions of dollars to develop, so that single user would be paying millions… every time you double your (paying) user base, you can either take a higher profit margin, use the extra money to improve the product, or pass those savings onto consumers… many companies try to maintain a balance of all 3, and since FXhome/Artlist care about us creators, they will almost certainly try to maintain the best balance possible.

  • GlotzTube
    GlotzTube Posts: 27 Enthusiast

    I am Worry about my HFP 2021.2 License beacuse Hitfilm is my Favourite and i am depend on it

    What if Artlist Shutdown the Activation Servers from Pre-Subscription-Versions of Hitfilm Pro/Imerge Pro/Ignite Pro?

    What if i cannot use my Hitfilm Pro License anymore?

    Then i going to the "Secret Weapon" against Artlist "Vegas Post" from the german Company "Magix"

    Why "Vegas Post"? Because "Vegas Post" includes "Vegas Effects" and "Vegas Image" and this is why i switch to "Vegas Post" if my Hitfilm Pro License is gone without leaving the Hitfilm Software because "Vegas Effects" uses the Source Code of Hitfilm Pro and "Vegas Image" uses the Source code of "Imerge Pro"... And Vegas Pro? This is the Only Software which is entirely by Magix but is a very Powerful NLE especially in Audio Editing Vegas Pro is the NLE with the Best Audio Editing capabilities like Integration with Soundforge Pro for Spectral Editing with Spectralayers Pro for High-End Audio Restoration

    "Vegas Effects" and "Vegas Image" is the Only Software from a Company which you can select between One-Time-Purchase and Subscription but the "Classic One-Time-Purchase"-Model is still the "main marketing strategy" from Magix and will still always available because Magix dont care about Subsciption-Only-Models which was only like a "little update" for everyone which will use Magix-Product for a Limited Time for a small amount of Projects like few months or for a "Testflight the Full-Version for a single month" without the need to Buy the entire software - But the "One-Time-Purchase" will be still the main source of income - Magix can not risk a Subscription-Only-Model otherwise Magix went dow the bankruptcy

    If Hitfilm goes to an Subscription-Model i am going to "Vegas Effects" - Its the Only Software which you can buy outright without Subsciption - And with the release of Vegas Pro 19 Magix has "Optimized" and "Lowered" the Pricing from the "Vegas"-Products - "Vegas Post" costs now 600$/600€ instead of the "old" 1000 bucks - Magix will Compete against Subscription-Based Software with their "classic Outright Mode"l because is Cheaper - You pay only once and then you can use your software for a lot of years - In a subscription the more you use the software the more you pay, as example you pay 25$ for Premiere Pro but use for 10 Years then you wasted 3000$ but if you buy a Software outright for 600$ every 5th Year you only pay 1200$ in 10 Years - you can also LET ROT your Software for over 10 Years and pay only 600$ for 10 Years like old Adobe CS6 Users doing

    "Vegas Post" has only one but very critical Downside: "Stability"

    "Vegas Post" is a real "Crasher"! if you dont set the Autosave Intervall lower than standard in the "Hidden internal Tab" it "blows up" your projects "like a Bomb"!

    If Artlist shuts down the Activation Servers from Pre-Subscription Hitfilm Pro/Imerge Pro your money is gone but there is a chance to get hope: "Vegas Post"

    If Hitfilm Pro is dead, its not over - look forward to "Vegas Post"

    If Hitfilm Pro is dead, its not over - "Vegas Post" is our last hope

    If Hitfilm Pro is dead, its not over - It will continue to live in "Vegas Post"

  • spyresca
    spyresca Posts: 284 Enthusiast
    edited December 2021

    My bet is that artgrid will offer (or force) integrations of their services into Hitfilm. And they'll use that as a selling point, to justify the subscription model and/or higher prices (or limits on sales/perpetual licensing).

    Which is all fine and good except for those of us who have no desire for any "synergies" with Artlist subscriptions or content (i.e. if we wanted that, we could have previously obtained that separately).

    Did Artgrid buy FXhome to sell Hitfilm and other products? Or primarily as another avenue (gateway) to force feed HF users their Artlist product services?

    Time will tell, but I wouldn't be surprised to see that happen.

  • triforcefx
    triforcefx United StatesPosts: 1,643 Moderator

    @GlotzTube When you purchase HitFilm there is this at the top of the page:

    ”Our products give you 12 months of updates included in the price! After 12 months, the updates stop (unless you choose to renew) but you can keep using the software forever. That's the FXhome difference.”

    I’m not a lawyer, but I don’t think they could get out of that very easily, if at all.

  • Triem23
    Triem23 Posts: 20,303 Power User

    @GlotzTube Vegas Post and Vegas Image are produced by FXhome under license to Magix and the Vegas teams.

  • GlotzTube
    GlotzTube Posts: 27 Enthusiast

    And this is why i am going to Vegas Post

    Its uses exactly the same tools as Hitfilm Pro

    This means i dont need to switch to a entire new software espexially compositing software

    I am can not switch to other compositing software becuase most of them are extremelly expensige like 8000$ for the software and 4000$ per upgrade which are uses Node-Based compositing which you can spend a lot of years to master the "nodes"

    Hitfilm Pro and Vegas Post are Intuitive to use - Its easy to learn and easy to master no matter whether you come from another editing program - Hitfilm is the term for affordable and professional software for eveyone... Yet...

    Only the NLE is a bit different but no problem for me because i am also have professional experience with Vegas Pro

    Vegas Pro is not so difficult to learn but the Workflow and shortcuts are a bit different as ususal

    If Hitfilm goes subscription - you can find me on the Vegas Community

  • nalmcruto
    nalmcruto Posts: 61 Just Starting Out*

    @GlotzTube You also can try Filmora Pro, It is rather like Hitfilm Pro.

  • W Guest
    W Guest Posts: 2 Enthusiast

    @GlotzTube

    Unfortunately, it appears that Vegas has gone subscription, as well.

  • Triem23
    Triem23 Posts: 20,303 Power User

    @W Guest somewhat incorrect. Vegas Pro does have a subscription version, but still maintains a perpetual license option.

    I even literally just triple-checked this.

  • W Guest
    W Guest Posts: 2 Enthusiast

    That is good to know, thanks!

  • KirstieT
    KirstieT Posts: 1,272 Staff

    @laconstantedeplanck I really appreciate this well thought out and polite opinion piece - it is always great to hear what people think, and how they're interpreting the changes. Thanks so much!