The writing is on the wall

“The big winner in these data are Internet design and development firms, whose purchases dominate the industry. But while these firms consistently hold the highest market share, both in terms of dollars spent and units purchased, their average spending per image was often lower than that for other segments, particularly creatives. These dynamics can have strong implications for producers and marketers of stock imagery.”

TrendWatch Graphic Arts_2005_

That was 3 years ago. The $71.9 million revenue of Istockphoto in 2007 is a clear proof that this study was correct. It actually did not reveal any secret but confirmed what everyone already knew. So, how as the industry reacted in the last 3 years ?

- The conservatives: Most have continued in their all too familiar ways, producing the same images for the same pricing, even when 90% are now being sold at microstock prices. Voluntary ignoring the microstock noise, that has now grown from a chatter to a scream, they believe that it is just a passing fluke that will die down when the party is over. Some even take a stand against this market by claiming loud and clear that they will NEVER surrender to such pricing model. As if high-priced images had any appeal to any image buyers.  They have the same images available on mid and micro sites, yet priced according to antiquated models. They have capture the attention of the medium mediocre pro photographers whose very livelihood is threatened by this sudden price drop. As the protectors of the pricing “status quo” they stand up desperately like little toy store owners in front of K Mart refusing to sell cheap chinese toys while charging 6 times more for the same products.

- The cold feeters : They understand what the market is up too but have a hard time accepting it. They have been in this industry for a long time with reasonable success and hate seeing prices go down. So they adapt. They either create new collections for these markets or “retire” images and price them lower. One foot in the water, one on land, they think they can continue doing what they know best without loosing on new pricing trends. They enter with little careful steps as walking in the waters of a cold lake, trying to organically figure out its temperature and if they will be able to swim. These agencies confuse their photographers tremendously as revenues become unpredictable.

- The passionate: They can’t get enough. They were early-adopters and cannot wait to do more. Some have caught the wave at the right time and are seeing good results, while others waited and jumped both feet at the same time. They are leaving familiar pricing territories and well know clients for hit and run sales. Less tear sheets but more volume. Less marketing intelligence but more sales data. Some have created their own micro/mid platforms and are hoping to catch up on the Istock wave ( Tsunami ?).

What is fascinating is when you see a traditional RM/RF platform asking their contributors for more “regular business images: people at their desk, answering phones..” . It is also laughable when others stand up on their soap box and say: “The answer is easy, my friends, create more high end RM images”.

Huh ?

When I was at Corbis, the term was “cutting edge” and even back then I was hitting my head against the walls trying to figure out what it meant. And more important, how it is made.

A stock image is by nature an image that is made to please a wide variety of clients. Furthermore, it has to be unfinished so that text and logos can be added. Even other images copied and past into it. Even with our world turning into a global village, local sensitivities are at skin edge. It makes it very hard to create images that will please everyone in the world.

So what is high end RM images ? I would like to see. Because, like the Eldorado or Atlantis before, there is a lot of talk about it but not much to see : Behold the savior of photography, the almighty cutting edge, high end photograph. The secret knowledge that will lead to the golden caves of fortune: How to create a high end image. If you possess that wisdom, that elusive stone, the magic wang that transforms a low end / medium end image into that legendary 6 figure image, then why in the hell would you stick it in a photo agency that will take 50% or more of your sales ?

Most commercial stock photo agencies, right now, should give their salespeople a substantial raise. Because the major reason their sales are still stable, if not rising, is because their client stick with them. Mostly because they enjoy the help and friendship with their contacts there . Its not the pricing, nor the images, those can quite frankly be found elsewhere, its that person on the other side of the phone. Yet, most go on a search for the elusive “sharp, cutting edge, high end” imagery soon to be copied by extremely web savvy microstock shooter.

A good salesperson will tell you exactly what images you need because they sell them everyday. Its not going to be a creative research ( shoot RV people !!, especially the ones being pushed because people can’t afford the gas price, says Corbis ) or keyword search analysis. Not even past sales data. It is going to be these guys behind their screens and desks, day in and day out that can tell you what you need. And they also, have no idea what a cutting edge image is, but they sure do know what an image that sell can be.

This entry was posted on May 4, 2008 at 9:22 am and is filed under Search, Midstock, license, commercial stock, keyword, finance, Royalty free, corbis, transaction, Microstock. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.

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