I can't confirm whether it's true, but I once read that Microsoft takes a similar approach to the unlicensed use of Windows in less wealthy nations. Even disregarding that it would likely be a losing battle, they'd rather it remain the norm than push people to the alternatives.
I used to work for a company that had a couple of "me too" products that they barely made any money on, but it was worth it to them to block a sale to the competition.
I've often wondered about this claim. I've heard it as well, from many different sources. I could never find a source, every time I've looked, it's a web of "I've heard".
Obviously Adobe wouldn't issue a press release to this effect, but does anyone know where this wisdom originated?
If you do business, you will study the market, those are results of the study.
Adobe has always struck me as a company that understood software economics really well and really early on. They'd make money from proprietary stuff, then give it away before it made an opportunity for a competitor.
Actually, it's probably less the understanding, than the actual acting on it.