Media industry
from24/7 Wall St.
1 day agoSemianalysis CEO: Adobe faces existential threat from AI commoditization
Loyalty to Adobe is waning as users question the necessity of subscriptions amid rising competition and lower editing costs.
It includes competition from traditional rivals, emerging AI players, large language model developers, and a prevailing market narrative that will be difficult to overcome, adds the analyst. The analyst says that their second-half fiscal 2025 CIO survey signals headwinds for Adobe, with front-office segments, including digital marketing, losing priority over the next 12 months. Notably, sales and marketing budgets show a 16-point net decrease, and 13% of respondents expect reduced focus on front-office applications.