Symantec Ups Software Renewal Prices

Without any public announcement, Symantec earlier this week raised prices on its renewal licenses for its software by as much as a third. The move could be an attempt to maximize profits one last time before Microsoft enters the security software space next year, analysts say.

The price of a renewal for Symantec's popular Norton AntiVirus and System Works products rose to $29.99 USD, a 20 percent increase. Upgrading Norton Personal Firewall now costs $19.99 USD and $39.99 USD for Norton Internet Security - both up 33 percent.

Renewal licenses allow users to continue updating the antivirus signatures, as well as receive product updates without having to buy a new boxed copy of the software.

Symantec released the "2006" versions of its products in September, but did not specify renewal costs at the time, which subsequently went into effect on Monday. The price hikes could add as much as $250 million to the company's bottom line in 2006, according to Merril Lynch.

In its defense, the security software maker notes that it has cut the retail price of the software itself by $10, and product updates are now part of the renewal price. Previously, software upgrades were sold separately from the virus pattern updates.

Also, Symantec is moving towards a subscription model, and this week's changes are reflective of that shift, according to company officials.