Does Photoshop lens correction only work with RAW.

The newest versions of Photoshop allow you to import video. It only allows certain file types (look them up) but it doesn't have to be RAW. Photoshop then treats the video file like an image sequence aka just a bunch of pictures.

The major issues with editing video is the video takes a rather large hit in quality. Photoshop is not the best video editor. I would suggest Premier or After Effects!
 
Just realized you might be talking about raw images and not video. I am not sure where the lens profile is located, it could be in Photoshop or Adobe Camera Raw. Photoshop can't actually open RAW images without it going through ACR. So if it is in Photoshop (which has the correction feature) Then you can do non RAW. If you have to do it in ACR (which also has the feature) Then you need to open the jpeg in ACR. Raw images automatically pen in ACR whoever you try to open it in Photoshop.
 
Photoshop effects work with multiple formats. RAW is just superior but doesn't mean you can't use other formats like the popular JPEG. Nothing wrong with JPEG depending on what you use it for. Here is a guide what to use when:

1) Journalistic shooting (RAW) – If you are shooting journalistically, meaning you are shooting in fast moving situations that are constantly changing in terms of lighting, scenes, backgrounds, subjects, etc then you need to be shooting RAW because nobody has the ability to shoot the “perfect exposure” every time. You can’t stop a person from shedding a tear, smiling, laughing, just so you can dial in just the right amount of exposure compensation, or manually set your settings. Shooting RAW allows you to quickly shoot while having enough information to fix possible exposure issues in post. If you are a journalist, a wedding photographer, event photographer, then you need to be shooting RAW.

2) Need additional range and tonal detail (RAW) – If you are shooting landscapes, nature, or virtually any scene that has a high Dynamic Range, then you want to be shooting in RAW to allow you to have additional post production flexibility to darken (burn) the highlights, while raising (dodging) the shadows, and properly tone-map an image.

3) Shooting for immediate display (JPEG or RAW+JPEG) – If you need the images for immediate display, say you need to display a same-day slideshow for a client, or you want to have them available for immediate proofing, then you want to be shooting JPEG. If you need post production flexibility and the ability to immediately use the files, then switch to RAW+JPEG so you have both. But, make sure you have extra cards present, cause you are going to burn through those things candles on Hanukkah.

4) Shooting for web or lower quality uses (JPEG) – Often times when I am shooting images for the web, I don’t need perfect images. I don’t need to have the post production flexibility of a RAW file. After all, is a small 500 pixel image selling a car on Craig’s List going to do a better job if it were a RAW file? Most likely not. Understand your audience, and if appropriate save time and shoot these types of images in JPEG format making sure that you properly set exposure and temperature while shooting.

5) Restricted space (JPEG) – OK, with the price of storage being so cheap, this definitely should not be a heavy factor in your reason for shooting JPEG over RAW. But, there may come a situation when say you are on a trip and you left your CF cards back at the hotel while you are out on a 8 hour travel excursion with only a 4GB card in your camera. In this situation, by all means, switch to JPEG. If you don’t, you are going to run out of space just as you walk into the Sistine Chapel (which by the way wouldn’t matter as they don’t allow photos inside, how lame eh?).

6) Personal use (JPEG and or RAW) – Hey, I am a professional photographer. But, I don’t need to have crazy tonal range and post production flexibility for every event in my personal life that I shoot. So, in more casual situations such as a small BBQ party, I shoot JPEG. When I am out vacationing in China or Europe shooting landscapes, cityscapes, people, etc, I shoot RAW. The rule here is that you don’t want to be spending crazy amounts of time processing images when the differences are going to be negligible and go unnoticed. Know your audience, know your situation, know your use for the images, and select appropriately.

7) Rapid succession burst shooting (JPEG) – One of our readers Benjamin D Bloom brought up a great point which I totally forgot to add to this list. If you are shooting live action sports and are shooting burst sequences in rapid succession, your buffer will fill up very quickly if you are shooting RAW. This means that your camera will stop to process the buffered images, thus making you unable to continue shooting while the camera is transferring those images from the buffer to your memory card. Shooting JPEG will allow you to shoot a lot more shots prior to filling the buffer. So, in this situation it is best to switch to JPEG, dial in all of your exposure and temperature settings in camera and fire away.

If you have to ask shoot in JPEG
 
usaken
Photoshop will open RAW but it has to be processed by ACR first. It is a separate program that will open up before the image is loaded into photoshop. ACR has a different interface and options when it comes to lens correction. Lightroom can also do lens correction.
 
If you are getting RAW files from your P2V, you need to update the firmware. The original firmware generated RAW files that cant be opened by Photoshop or anything else. Once the firmware update is applied, the camera should generate DNG files.
 

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