Is Abletons Business Model Broken?

Discuss music production with Ableton Live.
H20nly
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Re: Is Abletons Business Model Broken?

Post by H20nly » Wed Jan 20, 2010 10:57 pm

Bizon wrote:The point is not how much they have built up in reserves, I am simply pointing out that their business model is not sustainable. The reserves will dwindle very soon unless they do somethind IMO.
Long time users pay for upgrades, new users pay for the whole shabang, there are still instruments or the suite to add on plus EIC, Orchestral strings, brass, etc., etc., and finally Max4Live. Its not like they released 8, everyone bought it and then they closed the drawer on the register and unplugged it. Money is still coming in. IMO less money will come in if they don't address what they announced.
Loss of Faith = Loss of revenue
Solid = repeat users and a tempting invitation for the new user

I for one think the make-Ableton-Live-solid plan is the best plan they could have implemented. Thanks Ableton! You saw a hole starting to form and opted to fix it. Thats sensible. Thats a good business model. Keep it up and I'll keep giving you my money.
Steady as she goes...

Bizon
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Re: Is Abletons Business Model Broken?

Post by Bizon » Wed Jan 20, 2010 11:19 pm

ShelLuser wrote:You make some interesting points IMO and yes; you're absolutely right when you state that if a company looks rich it doesn't actually make 'm rich. Still, there are also a few points in which you contradict yourself IMO...
Well, I have no choice but to reply.

You are correct in that I do contradict myself in a couple of spots but it was a long ass post and I did not feel like editing it to perfection. So let me address those points.

First, you will notice that I said that Ableton is not quite yet at its maturity stage and as such still has a bit of room to grow. I however, do not see too much room and hence my posting about their future. I don’t disagree that there present is pretty solid but it’s the future I worry about more. This also addresses individuals like you, although I understand there is a lot of you’s out there, they diminish with each new customer. There is a lot of people coming on board now, as there should be since they are still growing and introducing new ideas/partnerships.

Next,
ShelLuser wrote:How would this make sense? Its not that long since 8 was released, they merely started off with the committed launchpads like the Novation and the APC's and for every one of the products you can be sure they get a commission.
Sure, however they also have partnerships they must pay for like Big fish and AAS. On top of that, commissions such as you mentioned do not prop up a whole company, once again you misunderstand my point about looking at the future and not necessarily right now. We all know that the product at present is selling well and should be for the near future which presumably will Include Ableton 9 and possibly 10.

ShelLuser wrote:Next you seem to forget another big player in this market, even though you quickly mentioned them. Too quickly to my liking: Cycling '74 with Max for Live. There's more cash flow but most of all: free Ableton extensions along the way with (even more important:} totally free and usable new ideas. Why bother to invest time and money into desperately trying to come up with something new? No; sell a magic box and let your users come up with the new ideas. Most of 'm will be generous enough to share their ideas which allows you to pick up on those and maybe even toss the better ones right back into your product. Not a one of one copy, but still.. The idea is often worth more than the implementation itself. And here they're getting paid and free new ideas along the way.
I do not forget the “Big Player” instead I do not think that this is a game changer to their business model. Yes it is a game changer to how we see and use live but does not do too much for Ableton in terms of new revenue streams. I would be willing to bet that most of the $299 is going to Cycling as it is mostly their technology. I see this as more of a selling feature for Ableton rather than a source of revenue.
”Bizon” wrote:I believe the fixing of the current version was more of a publicity move than anything. We all have seen discussions regarding what features will be in a new version whether it was 6, 7, or 9, the thread is usually overwhelmed with “fix the current version before releasing a new one” comments.
ShelLuser wrote:Yet this time they didn't release 9 as you sort of expected. IMO that sort of contradicts your own story. I know, you believe they pulled it at the last minute. I think that's very paranoid and contradicts your story even more, making it even a little silly (no offense).

You know what development costs? You know what marketing costs? It would really cost them dearly to suddenly withdraw a release (throw away the invested time and effort) instead of simply releasing it.
I don’t think they pulled it completely, that would be stupid. I do however, believe they delayed it until everyone is satisfied with the quality at which point they will release the new version. My prediction of this is sometime before the summer, but once again it’s just an opinion based on nothing other than my wacky ideas.

BTW, I love Ableton and I don’t plan on switching. But I do think about the future both my and Ableton’s and try to imagine what the world will be like in 2, 4, or even 10 years. I simply, from the limited knowledge available, don’t see how their business model is sustainable. Remember, a company must have growth prospects to be a good investment. At present, at least in my mind, it is not clear how they will accomplish this.

H20nly
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Re: Is Abletons Business Model Broken?

Post by H20nly » Wed Jan 20, 2010 11:28 pm

Bizon wrote:a company must have growth prospects to be a good investment. At present, at least in my mind, it is not clear how they will accomplish this
you answer you own your own post questions within your own posts
Bizon wrote:BTW, I love Ableton and I don’t plan on switching
Bizon wrote:I do however, believe they delayed it until everyone is satisfied with the quality at which point they will release the new version. My prediction of this is sometime before the summer





I think we're witnessing your left and right brain in a state of debate.

Angstrom
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Re: Is Abletons Business Model Broken?

Post by Angstrom » Wed Jan 20, 2010 11:35 pm

one more release will make it a mature product since there is not many additional features that Ableton could add
you have to be kidding me.
really, you are joking right?

I could list you a list right here and now, but it's probably best to just go and look at the wishlist forum - or Know that in the Ableton office they keep a massive feature implementation list that is thousands of entries long. Very very few of them are "add another effect", most of them are "spline based automation", "record automation in session", "let session clips hold other clips", "make it do surround sound", etc.
IE massive requests.

They have a lot of requests and ideas, enough to keep them busy until version 29

Bizon
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Re: Is Abletons Business Model Broken?

Post by Bizon » Wed Jan 20, 2010 11:40 pm

H20nly wrote:
Bizon wrote:a company must have growth prospects to be a good investment. At present, at least in my mind, it is not clear how they will accomplish this
you answer you own your own post questions within your own posts
Bizon wrote:BTW, I love Ableton and I don’t plan on switching
Bizon wrote:I do however, believe they delayed it until everyone is satisfied with the quality at which point they will release the new version. My prediction of this is sometime before the summer
I think we're witnessing your left and right brain in a state of debate.
What the hell you talking about, because I am satisfied with their current product this all the sudden solves how they will make money in the future?

The delay of 9 is a short term thing. They can make huge coin on that but unless they solve what I have written about, that money will quickly run out.

Bizon
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Re: Is Abletons Business Model Broken?

Post by Bizon » Wed Jan 20, 2010 11:42 pm

Angstrom wrote:
one more release will make it a mature product since there is not many additional features that Ableton could add
you have to be kidding me.
really, you are joking right?

I could list you a list right here and now, but it's probably best to just go and look at the wishlist forum - or Know that in the Ableton office they keep a massive feature implementation list that is thousands of entries long. Very very few of them are "add another effect", most of them are "spline based automation", "record automation in session", "let session clips hold other clips", "make it do surround sound", etc.
IE massive requests.

They have a lot of requests and ideas, enough to keep them busy until version 29
I hope so!

H20nly
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Re: Is Abletons Business Model Broken?

Post by H20nly » Thu Jan 21, 2010 12:32 am

Bizon wrote:
H20nly wrote:
Bizon wrote:a company must have growth prospects to be a good investment. At present, at least in my mind, it is not clear how they will accomplish this
you answer you own your own post questions within your own posts
Bizon wrote:BTW, I love Ableton and I don’t plan on switching
Bizon wrote:I do however, believe they delayed it until everyone is satisfied with the quality at which point they will release the new version. My prediction of this is sometime before the summer
I think we're witnessing your left and right brain in a state of debate.
What the hell you talking about, because I am satisfied with their current product this all the sudden solves how they will make money in the future?

The delay of 9 is a short term thing. They can make huge coin on that but unless they solve what I have written about, that money will quickly run out.

Which is exactly what they said they're doing so "what the hell are you talking about"?

You keep talking in circles: they need to plan to do what they are doing but if they don't they won't and that would be a problem with people but i'm a person and i won't be going anywhere as long as they keep doing what they're doing and fixing it and they better fix it because they won't have any money if they don't have anything to sell but they will soon i predict but if they don't they won't have money so they better cuz when they do i'll buy it and they'll have money if they do so they better and they should would could should would could should would could and are... blahzity skipitty hipitty hoppity down the lane with nobody stoppin me...

All that and you know exactly when a DAW is bona fide? You should design your own. You already have the "perfect" business model right?

Bizon
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Re: Is Abletons Business Model Broken?

Post by Bizon » Thu Jan 21, 2010 2:03 am

H20nly wrote:You keep talking in circles: they need to plan to do what they are doing but if they don't they won't and that would be a problem with people but i'm a person and i won't be going anywhere as long as they keep doing what they're doing and fixing it and they better fix it because they won't have any money if they don't have anything to sell but they will soon i predict but if they don't they won't have money so they better cuz when they do i'll buy it and they'll have money if they do so they better and they should would could should would could should would could and are... blahzity skipitty hipitty hoppity down the lane with nobody stoppin me...

All that and you know exactly when a DAW is bona fide? You should design your own. You already have the "perfect" business model right?
Image

H20nly
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Re: Is Abletons Business Model Broken?

Post by H20nly » Thu Jan 21, 2010 4:48 am

^ :lol: nice.


Here have one these with me...

Image

smutek
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Re: Is Abletons Business Model Broken?

Post by smutek » Thu Jan 21, 2010 5:19 am

Bizon wrote:
Pitch Black wrote:I think you neglect the fact that Live is the industry-standard live performance software.
As long as Ableton keep their dominance in live performance, I would say their future is assured.
I would say this is definitely still a growing market as most DJ’s still elect to use more physical media like CD’s.
Just wanted to point out that Paddy wasn't talking about Dj's, I'm pretty sure he was talking about musicians who actually perform electronic music, live, as opposed to djing.

There's no doubt that there is plenty of great options for Dj's; traktor, serato, live, cd's, vinyl, or a combo of any of those are all options for Dj's to choose, but over the past few years Live has really become the go to tool for a lot of live performers.

I think that is what he meant.

MRULTRA
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Re: Is Abletons Business Model Broken?

Post by MRULTRA » Thu Jan 21, 2010 5:49 am

I, for one, hope that Ableton (the company) remains independent and relatively small. It certainly adds to the "cool" element. It's why we don't mind putting their logo decals on our gear/cases/etc. Also, there's something intangibly pleasing in knowing that one is directly supporting the developers when one purchases their wares; similar to why it's enjoyable to buy direct from farmers at an outdoor market. This goodwill factor is not only good for marketing, but also for the bottom line: I remember reading a study that concluded that individuals are more likely to crack/pirate software that originates from big firms than from smaller companies.

zalo
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Re: Is Abletons Business Model Broken?

Post by zalo » Thu Jan 21, 2010 6:22 am

i guess you are right

i am not going to purchase anything else from ableton

no point in throwing money into a sinking ship

cant thank you enough, i would have wasted a lot of money on ableton products

Pasha
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Re: Is Abletons Business Model Broken?

Post by Pasha » Thu Jan 21, 2010 6:47 am

All interesting points.
However, Launchpad Novation was announced to arrive 1st November and in my area arrived 2 months later.
A friend in Zurich told me that he's getting mad about nobody in his area having it.
This means that the controller partnership is working and I would bet that there are many new users
attracted by the luxury package of a cool controller and an 8x8 grid software to play with.
Those users will most likely upgrade in the future to overcome the limitation imposed by the bundle.
Royalties are indeed a source of revenue. I was worried (you can read my post about it) sometime ago
about the business model but as someone wrote here we do not know enough of internal Ableton Plans
to speculate. I know for sure that by talking with friends, a lot of them are getting Live Intro or
the Launchpad or APC40 and this means that Ableton has to make the transition from being a niche player
to being the leader (two years ago AKAI or Novation were distant from Ableton).
Will they manage the change? Too early to say. However I trust them.
We'll see.

- Best
- Pasha
Mac Studio M1
Live 12 Suite,Zebra ,Valhalla Plugins, MIDI Guitar (2+3),Guitar, Bass, VG99, GP10, JV1010 and some controllers
______________________________________
Music : http://alonetone.com/pasha

Bizon
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Re: Is Abletons Business Model Broken?

Post by Bizon » Thu Jan 21, 2010 7:05 am

zalo wrote:i guess you are right

i am not going to purchase anything else from ableton

no point in throwing money into a sinking ship

cant thank you enough, i would have wasted a lot of money on ableton products
Dude, did you read any of my posts?

Nowhere did I mention that you should not be purchasing the software and certainly not because the company is going under. They would be sold off long before that happens.

Not sure you know what a business model is, you may want to look it up. Better yet, from wiki "describes the rationale of how an organization creates, delivers, and captures value". Exactly what I have been talking about i.e. How will they capture value in the future.

zalo
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Re: Is Abletons Business Model Broken?

Post by zalo » Thu Jan 21, 2010 7:23 am

so what should i buy instead of live?
Last edited by zalo on Thu Jan 21, 2010 8:23 am, edited 1 time in total.

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