My thoughts on the Artlist acquisition and subscription model

laconstantedeplanck
laconstantedeplanck Website User Posts: 61 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 Website User Posts: 13 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 StatesModerator, Website User Posts: 1,225 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.

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