Will Adobe Stock Overtake Shutterstock?

The digital landscape for graphic design and content creation is constantly evolving. Adobe Stock, known for its powerful image and vector offerings, seems determined to become a major player in the stock photo market, potentially overtaking giants like Shutterstock. This article examines the dynamics at play and assesses the viability of Adobe Stock's strategy.

Adobe Stock's New Drive for Growth

One of the key strategies Adobe is implementing to strengthen its market position is offering free images, vectors, and illustrations. This initiative is designed to generate substantial traffic and increase audience engagement, akin to the renowned Google search engine optimization techniques. Not only is this advantageous for adobe, but it also benefits creative contributors by providing an upfront payment in exchange for a 12-month usage agreement.

Financial Incentives for Contributors

A notable feature outlined by Adobe is: “Selected assets will be eligible for an upfront payment per asset from Adobe in exchange for a 12-month non-exclusive license.” This unique approach offers creators a one-time payment upfront, which is an appealing option for many freelancers and small businesses.

For instance, I myself have received such an upfront payment of $70 for a few of my illustrations. This is a substantial benefit, as it provides creative contributors with a one-time payment, thereby incentivizing more people to contribute to Adobe Stock.

Traffic and Customer Retention

These types of promotional programs can significantly drive traffic to Adobe Stock, ultimately converting visitors into permanent customers. The digital age demands continuous adaptation and innovation, and Adobe's strategies are geared towards meeting these demands. By being accessible directly within their creative software, Adobe Stock ensures that users can find what they need without leaving their workflow.

The Market Landscape

Both Adobe and Shutterstock are publicly traded companies, with market capitalization figures that clearly reflect their respective market positions.

Adobe: ADBE with a market cap of $65 billion currently owns a massive stake in the creative industry. They are backed by substantial financial resources, allowing them to invest in innovative strategies and products.

Shutterstock: SSTK with a market cap of $1.5 billion is still a formidable competitor but has a more singular focus on the stock photo business. Their entire revenue stream comes from stock photos and related services.

Both companies have robust offerings, with Shutterstock continuing to dominate with its extensive catalog of high-quality images and videos. However, given Adobe's broader range of subscription services, including Graphic Design Services, Adobe Stock has a unique advantage. By integrating Adobe Stock directly into their programs, users can seamlessly access the platform, enhancing user experience and engagement.

Historical Context and Future Trends

A recent article from 2016 titled “Adobe Stock vs. Shutterstock [3 Graphs That Show Whos Best]” highlights the changing dynamics in the market. The data suggests that Adobe's approach of offering free content could give them a substantial edge.

Moreover, based on the huge demand for content in the industry, it is clear that both companies are navigating the digital space with a keen eye towards evolving trends and consumer preferences.

Conclusion

While the market is big enough for both Adobe and Shutterstock to coexist, Adobe's strategic moves directly into their own programs could potentially give them the upper hand in the future. Here are a few reasons why Adobe Stock has a distinct advantage:

Early Incorporation: Adobe's direct integration into their creative software ensures a seamless user experience. Substantial Fundings: With a market cap of $65 billion, Adobe can invest in innovative projects and strategies. Diversified Offerings: Beyond stock photos, Adobe offers a range of subscription services that can attract and retain a broader customer base.

Given these factors, it's not far-fetched to think that Adobe Stock could indeed overtake Shutterstock. The journey may be long and challenging, but with the right strategies, Adobe may just prove its mettle in the competitive landscape of stock photography.