Adobe 2009 Annual Report Download - page 6

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the preferred format for delivery of digital video via the Web. Because of the broad reach and ubiquity of our Flash client
technologies, the growing adoption of our authoring tools and our video delivery capabilities via our Flash Player, it is
estimated by the research agency comScore that more than 75% of worldwide video watched online is now in FLV format.
To further the monetization capabilities of video content owners who wish to deliver engaging experiences utilizing
their video assets, we also delivered Open Source Media Framework (“OSMF”), a new framework for media player
development that can be used to create and deliver custom online media players. OSMF enables developers using Flash
technologies to quickly and easily add rich functionality such as advertising, user measurement and tracking, and social
network integration into new custom video players that can be branded for individual content owners.
In the professional page layout market, despite the downturn in the economy and the financial pressure facing traditional
print media companies, we continued to focus on gaining market share during the year with our Adobe InDesign product.
Similarly, in the Web layout and Web development markets, and in the illustration market, while our revenues were
adversely affected due to the economy, we focused on maintaining market share leadership with our Adobe Dreamweaver
and Adobe Illustrator products.
Our Scene7 business, which provides businesses with an easy-to-use Web-based system to upload, manage, enhance and
publish dynamic rich content, achieved year-over-year growth in fiscal 2009 based on accelerated customer adoption of our
solution. During the year, we updated the capabilities of our Scene7 hosted cross media platform with new features for e-
commerce and multichannel marketing companies to create improved, high-impact customer experiences. New Adobe
Scene7 capabilities include more design control and enhanced workflow efficiencies with new features such as mixed media
set publishing and viewing capabilities; video authoring and viewing capabilities that synchronize merchandising videos with
specific call-to-action links, as well as improved integration with Adobe Creative Suite.
During the fourth quarter of fiscal 2009, we released version 8 of our Adobe Photoshop Elements software which is our
digital imaging application targeted for amateur photographers and digital imaging hobbyists. In the same quarter, we
released version 8 of Adobe Premiere Elements software which is our video editing software that can be used by hobbyists to
enhance and share their digital video memories on DVDs. We also released a software bundle that includes the new versions
of Adobe Photoshop Elements and Adobe Premiere Elements to target hobbyists who desire both applications in one
affordable package. Despite success with these new hobbyist product releases, overall revenue in the hobbyist category
declined year-over-year due to the economy.
Creative Solutions Business Strategy
In fiscal 2010, our Creative Solutions strategy will focus on driving revenue growth and increasing market share of our
products through the delivery of comprehensive software solutions that meet the evolving needs of our customers. To help
drive this strategy, we will deliver new versions of our Creative Suite family of products during the year with a focus on
improved integration between our products, more efficient collaboration and workflow capabilities, and enhanced
functionality – particularly in areas related to interactivity and rich media use related to Adobe Flash content creation, mobile
and alternative device content creation, and hosted cloud-based services which will augment the capabilities of our desktop
products. We will also utilize hardware improvements such as 64-bit computing support and graphics processor unit
acceleration to significantly improve the performance of our products.
We believe that, while many of our customers have made the switch to our Creative Suite editions from individual
creative products, there still remains a large opportunity to migrate customers from individual products to Creative Suite
editions – particularly in emerging markets and other large geographic markets outside the United States where our Creative
Suite penetration is lower. We also believe many customers who did not migrate to newer CS4 releases during 2009 due to
economic factors could upgrade to new versions of our products in 2010, due to new and enhanced features, improved
productivity gains, support for the latest Microsoft and Apple operating systems that are being adopted by our customers,
new hardware purchases by our customers which could cause them to update old versions of creative software, and the
addition of features in some of our creative products which will provide better integration with our Omniture Web analytics
and business optimization products.
To increase the addressable market for our Creative Solutions business, and to address the needs of customers creating
interactive content and applications for both PC and non-PC based environments, we intend to add Adobe Flash Catalyst and
Adobe Flash Builder to some of our Creative Suite configurations in 2010. We believe interactive designers, Web developers
and other creative professionals will benefit from the added features and integration of these Platform Business Unit products
with the other creative products they regularly use to provide innovative ways to deliver improved Web-based content,
applications and experiences for both PC screens and non-PC screens such as mobile device and TV screens.