Adobe 2002 Annual Report Download - page 45

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14
can successfully compete with these types of applications based upon the quality and features of the Adobe
PageMaker product, its strong brand among users, and its widespread adoption among printer service bureaus.
A number of companies currently offer one or more products that compete directly or indirectly with more than
one of Adobe’s Creative Professional products. These companies include Arbortext, BroadVision, Macromedia,
Microsoft, and Quark.
Digital Imaging and Video
The Digital Imaging and Video software markets are constantly evolving markets, characterized by rapid
technology and hardware developments, and frequent new product introductions. The needs of the users in these
markets — especially at the low-end consumer level — are rapidly changing as more people become avid users of
digital cameras, digital video cameras, and digital imaging and digital video equipped hardware devices and
personal computers.
Our tools in this market, including Adobe Photoshop, Adobe Photoshop Elements, Adobe After Effects, and
Adobe Premiere software, face significant competition from companies offering similar products and will continue
to face competition from emerging products and technologies. In addition, any future products created by Adobe to
enter the digital image management and DVD authoring markets will face similar competitive environments.
The mid-range consumer digital imaging and image management software markets are subject to intense
competition, price sensitivity, brand awareness, and strength in retail distribution. We face direct and indirect
competition in these markets from a number of companies, including ACD Systems, AI Soft (Japan), Apple
Computer, ArcSoft, Corel, Image Software, JASC Software, Luna Imaging, Microsoft, Paessler GmbH (Germany),
Pegasus Imaging Company, Roxio, TriVista Technologies, Ulead Systems, and VCOM Products.
We believe we compete favorably against other mid-range digital imaging and consumer-focused image
management software applications with our Adobe Photoshop Elements product due to strong consumer awareness
of our brand in digital imaging, our relationships with significant OEMs, positive recommendations for our products
by market influencers, our increased focus on the retail software channel, and a strong feature set.
The professional digital imaging software market is a competitive market where software applications compete
based on product features, brand awareness, and price sensitivity. We face direct and indirect competition from a
number of companies. We are an industry leader and compete favorably with our Adobe Photoshop product due to
high awareness of the Photoshop brand in digital imaging, the positive recommendations for our Photoshop product
by market influencers, the features and technical capabilities of the product, and our ability to leverage core features
from our other established products.
Applications for digital video editing, compositing and special effects, and DVD authoring face increasing
competition as professional, enthusiast, and home users migrate away from analog video tools towards the use of
digital camcorders and digital video production on their computers, and DVD systems for rich media playback.
Adobe After Effects and Adobe Premiere software face increased competition from companies such as Apple
Computer, Autodesk, Avid, Eyeon, in-sync Corporation, Kodak, Pinnacle, Roxio, Sonic Foundry, and
Ulead Systems.
Adobe After Effects software is a leader in professional compositing and special effects editing applications
due to our strong feature set and the integration with our other products to create a broad platform for our customers.
In professional digital video editing, we are a leader on the Microsoft Windows platform with Adobe Premiere,
and compete favorably due to our strong feature set, our OEM relationships, and the integration with our other
products to create a broad platform for our customers. In professional digital video editing for the Macintosh
platform, we believe we trail in new user adoption to Apple Computer’s digital video editing product. We believe
that competition on the Macintosh platform with Adobe Premiere is difficult, based on Apple’s marketing and
development advantage relative to their ownership and control of the Macintosh operating system and
hardware platform.