My thoughts on the Xara Web Designer 365 subscription service

[katemoir]

at some point and somehow we have to be paid for this year of development.

That should really be factored in to the purchase price for the base version. It's what other companies do. I guess the company psyche is that the cost of the new version = costs of producing it. Maybe the cost of a new version should be the cost of producing that version and of updating it throughout the year?

True, we could have considered simply making this update more expensive!

[pauland]

True, we could have considered simply making this update more expensive!

It may have been more popular.. ;-)

[browj2]

There has been a lot of misunderstanding about this new method, everything from people thinking that there is nothing new in the product and that they are buying future upgrades, to if I have to reinstall the program the day after I purchase it, it will be stripped of all features. In the former, some people have questioned that Xara may not produce anything in the next year so they would be paying for nothing. Many people have commented without investigating. Kate replied to my concern about which version would be available for reinstallation should I not renew and then have to reinstall - it is the version upon my last renewal. That is good enough for me.

Interestingly, the topic has not engendered the same amount of concern on the Magix forum. I now have two Magix subscriptions, Audio & Music Lab Premium and Video Pro X and there has been next to no comment about the subscription method. People have purchased based on what is in the new version, not what may come in the next year. It is understood that any upgrades during the year are an advance on the next renewal. However, with this subscription method, Magix and Xara can be guaranteed that if there are few or even no upgrades during the year, the subscription will not be renewed and users will wait until they see enough new features to justify jumping back in. If there are no new features in the first 6 months, you can believe that I and many others will be bombarding Magix with emails questioning the value of the subscription.

I believe that the new subscription method has been done not for cash flow purposes, because that doesn't make sense. If everyone upgrades now, then there are no cash receipts for 365 days. It was likely done to demonstrate to shareholders (an illusion of an increase of shareholder value) that there will be a regular income stream from subscribers (so long as new features are issued). Having subscribers looks a lot better on the books than potential upgraders. The danger is that shareholders may question the necessity of further development with all of these subscribers on board.

That said, since this has caused such a ruckus, I suggest that Xara simply offer two versions, one as per the previous method - purchase the upgrade and receive no new features afterwards; the other for the subscription method with the pitfall of potentially losing any new features issued in the 365 days following renewal should one not renew and then having to reinstall Xara. For the same price!

I know which one I will purchase.

John