Click on any phrase to play the video from that point.
[♪ Music ♪]
[Adobe's Vision for Professional Video]
Hi, I'm Jim Guerard, I'm the Vice President General Manager of dynamic media for Adobe,
and I want to spend a few minutes with you today
talking about our professional video business.
[Media Consumption and Creation]
We are at a very important time in the media industry today.
We're at a time where there is unprecedented change.
We've got this explosion happening of content in media coming across multiple screens
being distributed in many, many, different ways, and the change we're going through
is different from what we've seen in the industry before.
We've been through changes such as analog to digital
and tape to disc and SD to HD.
When you think about those changes, each one of them, the media industry
and the technology industry have largely been able to manage that change
at a rate of pace that was comfortable for them.
The difference with what's happening today is this is all being driven by a
massive change in consumer behavior and in the way media is being consumed.
And that means we're not in control.
The consumers are in control, and the technology industry and the media industry
are moving quickly in trying to adapt and adjust and keep up with these changes.
So, when we talk about this massive change in consumption and what that means
to the media and broadcast industry and what that means to filmmakers
and post-production houses, the change is rippling back
through their business as well.
This is a tremendous change, tremendous change in workflows,
tremendous change in cost and also, quite frankly,
it's a tremendous change in the business model for these companies
as people struggle to figure out how to have a viable, profitable business
in this online multiscreen universe.
[Adobe's Pro Video Momentum is Strong]
The Adobe professional video business has been on a great run,
and we're expecting that to continue for the next several years.
You may have heard other people recently talk about the industry growth
being around 7% last year, and how others grew their business 15% year over year.
Adobe's professional video business last year grew by more than 22%
year over year in terms of revenues and by 30% in terms of actual units.
When we talk specifically about our business growth on the Mac platform,
we grew our revenues last year by more than 44% on the Mac,
and we grew our unit volume by more than 45% on the Mac.
That's more than 6 times the industry average.
How do you like them apples?
One of the real highlights within our professional video business
has been the explosive growth of Adobe Premiere Pro.
We now have reached over 2 million installed seats of Premiere Pro around the world.
That's not counting legacy seats of Premiere.
That's not counting upgrades.
That's brand new seats of Premiere Pro.
We've grown that by more than a million and a half units over the last 5 years,
and we now have a worldwide installed base of Premiere Pro in the professional market
of more than 2 million seats.
[Adobe's Planning-to-Playback Pro Video Workflow]
I started running the Adobe professional video business about 5 years ago,
and when we first put the business together, we developed a strategy and a plan
that we're still executing against today.
That strategy can best be encapsulated by the simple phrase plan to playback.
What we are on a mission to do is to create a comprehensive, open, extensible,
cross-platform set of professional tools that are deeply integrated with each other
and that also integrate with many other providers out there in the industry
such that professionals can create content once at the highest levels of quality,
seamlessly take that content to both traditional mediums and forms of distribution
such as film, broadcast, Blu-ray and DVD,
and also seamlessly take that content to these new mediums and forms of distribution.
So, as you think about that plan to playback vision and you think about
what we've done in our releases over the last 3 or 4 years,
we started with the core products and our core tenets around After Effects
and Photoshop and Premiere Pro, and we've expanded
that workflow in both directions.
After we acquired Macromedia, we really started to focus in on multiscreen distribution,
first and foremost with Flash video, and today with HTML5,
and then we further expanded that with the acquisition of Omniture,
so that you now can take content not only all the way through distribution,
but you have analytics that you can use to optimize that content
and optimize your business models in that online multiscreen world.
If you go back the other way from post-production and production
back into planning and pre-production, we've added in great new capabilities
such as Adobe Story, a hosted online scriptwriting tool.
Scriptwriting is not only important because it's the first place where you really start
to plan out what you're going to do in terms of telling your story,
but it's also very, very important to that multi-screen world when you think about metadata
because when you have the script and you can bring that metadata seamlessly through
the workflow, all the way down to distribution and playback,
you have a virtual gold mine of information for monetization
and distribution in that online world.
[5 Areas of Innovation Leadership]
It's very important to understand that we're very focused in on continuing to innovate
very aggressively with all of our products, and in particular, our core tenets
and our core products such as Photoshop, After Effects, Premiere Pro and Audition.
We're also very focused in on delivering these innovations and these new capabilities
on a timely basis to our users to keep them current
with everything that's happening in the industry.
At NAB 2010 we introduced a great new release of our professional video products
with Adobe CS5.
In particular, great new innovation within After Effects and Premiere Pro.
We introduced rotobrush with After Effects.
We re-architected Premiere Pro for 64 bit.
We expanded the native file format support, introduced the Mercury Playback Engine,
and set a new standard for the industry.
NAB 2011, we followed up within one year with a great new release, Adobe CS5.5
with even more groundbreaking new innovations and capabilities.
In addition to expanding the capabilities of Premiere and After Effects,
we introduced a brand new cross-platform version of Audition
that was thinking about the future.
We brought Adobe Story and our scriptwriting service to a fully featured product,
and we integrated all of these together as we continued to provide great, deep
integration across our applications and through the entire workflow,
as well as continuing to make great new innovations in extensions
around metadata workflows and multi-screen delivery.
[Rapid Customer Adoption]
The market response to the last two releases of our products has been
phenomenal from my point of view.
We're squarely focused in on serving the needs of the broadcast community
and the professional filmmakers, and there we've seen
tremendous adoption of our products.
Products such as Photoshop and After Effects have been staples to them for years,
but in particular, it's been the adoption of Premiere Pro
that has been very, very exciting for us.
In the broadcast area, we see world leading broadcast companies
such as the BBC and Turner adopting Premiere Pro as a core product of their workflow.
There's a whole new generation and breed of filmmakers out there today
that we call the "Digital Mavericks" that are using red digital cinema cameras
and DSLR cameras to tell their stories in compelling new ways.
People such as Gareth Edwards, who won the British Film Award for "Monsters"
and is now hard at work on a remake of Godzilla.
Tyler Nelson, who worked very closely with David Fincher on the making of
"The Social Network" and actually conformed and finished that movie on After Effects.
Award-winning cinematographers such as Shane Hurlbut, who is hard at work
on a new film being shot with DSLRs and using Adobe Premiere Pro
and After Effects to finish that film.
We've also seen great adoption by the world's leading film schools
such as UCLA, USC, Vancouver Film School, Bournemouth University in the UK
and a long list of others.
[Pillars of Focus]
Let me wrap up with the 5 key foundational pieces that we are
most focused on as a business.
First and foremost is making Premiere Pro the workhorse of the industry.
We want to make and we are going to make Premiere Pro to video editing
what After Effects is to motion graphics and visual effects
and what Photoshop is to digital imaging.
Second of all is we are very, very focused in on growing
and expanding our business in the professional arena.
Broadcast and media companies, film and post-professionals.
The professional market is where we see tremendous growth and opportunity.
It's what Adobe does as a company.
We are focused in on creative professionals, and that is very true of the
professional video business, and that's where we're going to spend our time
and be very aggressive about growing our business.
The third foundational piece of our business that's very important to us
is integration in open workflows.
We've always made our tools very extensible and worked closely with
plug-in developers, with camera manufacturers, with I/O card manufacturers.
As we continue to grow and address the needs of the broadcast and media professionals
and the professional filmmakers, we know there are other important parts of their workflows
that we will integrate with and partner with much more closely.
Media asset management companies, storage and playout vendors.
These are important parts of your workflow in making your business successful,
and we're expanding our efforts in these areas and working very, very closely
with these people, and we'll continue to provide great solutions as we move forward.
The fourth foundational piece is an area where I think we've provided tremendous
leadership to the industry from day one.
This is around metadata workflows and multiscreen delivery of content.
When you think about the multiscreen world, there are three fundamental problems
that media companies face.
One, how do I get people to find my content?
Two, once they find my content, how do I keep them on my site longer
and serve up more relevant content to them?
And three, how do I deliver either premium business models
or higher CPM ad rates to drive a more profitable and more viable business?
And metadata is the key to all three of those, because if you have metadata,
you have the information you need for search and discovery for them to find your content,
you have the information that you need to serve up more relevant content
and to keep their interest, and you also have the information to do things
such as contextual advertising and drive higher ad CPMs.
So, metadata and multiscreen delivery are key to being successful
in a multiscreen distributed environment, and it's an area
that we will continue to provide tremendous leadership.
The last foundational piece is one that's relatively new for us,
and relatively new to the industry, and we're incredibly excited about it.
And that's really taking advantage of the cloud
and delivering on collaborative cloud-based solutions.
This is an area we started in about a year and a half ago
when we first introduced Adobe Story.
Again, Adobe Story is a scriptwriting tool, but it is a cloud-based solution
that you can access via web browser, via desktop application,
via an application on your iPhone, quite frankly, and it allows for real-time collaboration
on developing, reviewing and writing scripts, and this is just the beginning for us.
We see this type of collaboration and cloud-based collaboration
being fundamentally important to the industry, and it's an area that we will expand
to include all of our tools in the future.
So, we're very excited about it.
We think we have a unique position and a unique understanding of this
given the breadth of the technology that Adobe provides,
and we can't wait to bring this to market with you as we move forward.
So, those are the five areas that we continue to be focused on
specifically within that vision and strategy that we have, and again,
thank you very much for joining me today.
We couldn't be more excited about our professional video business
and where we're going to take it in the future, and we hope
you come along for the ride with us.
[Adobe]
