October 31, 2008 by pmelcher.

It’s been a long week, or rather couple of weeks, for the photo industry. Between the various shows in New York city, Paca, picturehouse, Photoplus, panels and parties, anyone that has remotely anything to do with photography was in New York for one or all of these.

But its been an even longer week with was has been happening in the photo world. First, the official announce of the Meckler/Jupiter debacle and fire sale confirming that it just doesn’t take a lot of cash to be succesful in this industry. Getty will absorb the collections and agreements in place, get rid of most of the staff , clean up the finance and move on. It was an easy and fruitful catch for them. Someone can inform Corbis of the deal, in two weeks, when they wake up.

Talking about Corbis, well, they couldn’t find any better deal then take money from their photographers. After having failed to generate a profit for so long and a stage that even if they remotely became cash flow positive, it would take another 20 years to catch up on all the money they have already spend, it wouldn’t surprise anyone if Bill Gates would finally pull the plug.

But all that is nothing compared to Getty getting slap with a 100 million dollar lawsuit by part of its photographers and contributors according to Selling Stock. Surprisingly, no one picked up that story. Pdnpulse has been too busy reporting on all the layoffs in publishing world, while others where commenting on the Photoplus panels and other useless events.

It been a while that Getty has been supplying staff and non staff images to a mysterious group of “premium subscribers”. These highly guarded few have “all you can eat” subscription deals with the Whale including access to photographers who only get a commission. And these guys have seen on their sales reports sales at $2 dollars. Even lower than Istock. But unlike Istock, these photographers are top notch pros that create image that command mucho dollars. Getty doesn’t care or cannot make the distinction. At the repeat demand of these photographers to be explained a bit more abut these deals that do not benefit them, Getty has remained silent. Contributors, like the science faction library, owned by ex getty VP Roger Ressmeyer, have even ask nicely to know more about the license granted and what industry these clients where in. More silence from the Whale. Same for the Minden collection, the famous and fabulous wildlife collection.

The reason for their demand for more information was not to  exercise control over Getty but rather to be able to inform their direct client if a particular image was available as an exclusive for a particular industry. Not only these images are sold by Getty for two bucks, but they become almost RF as the owners cannot guarantee any clients where these image are or have been.

Armed with they contract in hand, these guys have deposited a class action lawsuit, asking for reparation. We will see where this goes. Getty has a battery of strong lawyers and they will not go down without a long fight.

{An entry on Drr has been deleted}
A quick though on Picturehouse, and then I let you go. It always amazes me how much dollars is being poured in marketing  blunders. One company had the genius idea to stick into an already expensive bag, two oversized brochures. One was printed on glossy, very expensive paper. Big images, fancy layout, drooling fonts but absolutly no call for action. Basically you look at it once and you have only one thing left to do, throw it out.

The other brochure was printed on recycled paper. Same dimension, but all about how”green” and non polluting that agency is, and how “green” are they images. These two brochure side by side, in the same bag, just canceled each other.Lots of money than the drain. And no, it was not Corbis, for once.

There  were many other examples of “what were they thinking” and that show must become a destination for anyone looking for cheap pens or other useless ding dongs. If you took one of each item given for free and all claiming a space on your physical desktop, you could no longer fit your computer, let along get in your office.

Next year, I will beat everyone by getting giant real size stuffed elephants branded with my company name and give those away.

There is much more to write about these days but I see you are getting tired so we will do that another day.

Posted in magazine, Canada, technology, commercial stock, Jupiter, PACA, Royalty free, getty, corbis, Microstock | Print | No Comments »

October 26, 2008 by pmelcher.

Daryl Lang is a lucky guy. He gets invited to Corbis’s secret meeting on rooftops. And not me. I wonder why ?

Corbis executive team, apparently out for a week-end stroll, decided to inform some lost contributors that, in effort to make the company profitable, after only  15 years of trying, they would cut photographers royalties. Their logic is simple. After an apparently doom and gloom presentation about the future of the industry, how it will shrink to a peanut size, they declare that the only solution is to reduce the commission pay-out to photographers.

Make sense for a Starbucks Latte induced Seattle executive .

The logic is clear cut:   “we (Corbis) expect less revenue thus we will give you ( photographers) even less. After all, we are in it together.” However, there will be no salary cut for the senior management . If Steve Davis legacy is intact, the current CEO must be close to $800,000 a year with other senior execs making in the $400,000. But their salaries will no be touched. After all, continuing to run a company that has NEVER posted a profit and making sure it doesn’t should be rewarded well.

The rooftop meeting apparently welcomed a slide show by Mr Shenk who, according to that lucky, lucky Daryl Lang “  …forecasted that the total stock image licensing business will fall from $2.3 billion dollars in 2007 to $2.2 billion in 2011.”

No mentioned was made about the source of these wacky pretty numbers and what they included or didn’t. But what it shows is that Corbis has no intention of taking more market shares and will just ride the wave of this downfall. Cool !!. What a great company that is. They cut staff, they cut royalty to “some” photographers, the ones apparently most impacted by Corbis lack of sales, and they announce that they will do nothing to grow. However, they will keep more of what is left.

No one mentioned, for example, the web ready Corbis-Veer new pricing at $40, $9 less then Getty’s . It would have been nice to ask if this was a company wide policy to slash prices too.

The leisure, casual, dress-down-Friday meeting was apparently a new corporate attempt to make contributing photographers swallow a hard pill. And it seems it will work. Pro stockers, desperate to make any revenue at all, will seemingly accept anything these days. Even the fact that they could make 70% royalty if they moved to Snapvillage, the midstock arm of Corbis, or if they switch to shooting celebrity portraits and belong to the Outline brand.

There is a class system being instituted at the Bill Gates photo agency with photographers receiving different types of royalty based on what they shoot. You are a complete amateur, you get 70% of a growing market. You are a season pro, you get 40% of a declining one.

It is doubtful that any photographers will leave the paper tiger, as there are no alternatives anymore. If anything, Getty will continue to trim its contributing sources in order to keep the best. With the successive failure of all co op photo agencies models, the ineffectiveness of the trade associations and the impossible tasks left to the medium size agencies, its a grim horizon facing pro stockers. But then again, it always was:  “This is our company together.” Ya, right.

Posted in Midstock, Photoplus, commercial stock, prosumer, finance, getty, corbis, transaction, Royalty free | Print | No Comments »

October 23, 2008 by pmelcher.

At the eve of the PACA meeting, where small business owners of the RM and RF photo industry meet twice a year o complain about the state of the industry, Jupiter media just announced that it was dropping the ball and selling all to almighty Getty. Not a fire sale but very close. Jupiter Media stock had been trailing at subterranean levels the last few months and usually vocal CEO Meckler had gone silent and into hiding.

Since the last screw up where the New York Post ( some talk about an internal leak done on purpose to get Corbis to bid) had reveal the potential transaction, it seems quite evident that Meckler chose to avoid writing anything that could damage this second round of talks.

Boy, someone must be biting their nails now. $ 96 million is not badbut certainly not what Getty would have paid a couple of years ago. Furthermore, while it could have been interesting for Getty to keep the brand alive at that time, it certainly not so appealing now. Finally, this makes Getty the leader in Microstock with two top brands, Istock and StockXchnge.

There will be very heated debate at the PACA reunion for all does living in the crumbs left by Getty. The last of the public photo agency ( if we do not count A21) has been absorbed by the crippling giant, making Corbis’ and others stay in the business even less evident. With such firepower and extensive content, Getty is now in a real position to completely asphyxiate the US market and maybe others.

After deleting redundancies, this acquisition will make it nearly impossible for a stock photographers to be successful outside any of Getty’s brand, and for those within,  impossible to negotiate a fair treatment.

It will be interesting to see how the stormtroopers of SAA will react, as well as the surviving independent brand. Sure, there will always be the “niche” market. But how easy will it be for Getty to filled those too if they think there is a profit to be made.

Finally, the last word is always in the customers mouth. Surely, as the content is there and the pricing adequate, they should not care. However, big corporation have been known to make mistakes and Getty is part of those.

The failure of Jupiter to succeed in this industry is another example of how inadequate the corporate world is when dealing with the ever changing world. Getty’s domination of the commercial stock business is also, indeed, scary and troublesome, but yet, not guaranteed.

The only sure thing is that this PACA meeting will be very heated..if not desperate.

Posted in commercial stock, Jupiter, finance, corbis, getty | Print | 3 Comments »

October 18, 2008 by pmelcher.

I usually do not post press releases but this one is too important to ignore:

London & Los Angeles: Alan Berliner and John Selby are pleased to announce the merger of the Berliner group of companies and Rex Features’ North America operations.

The two companies will work in partnership in the USA bringing a greater range and depth of choice for both companies’ clients in the USA, the UK and worldwide.  Rex will now be investing in the development of production and sales operations on the US East and West coasts.

Rex Features has a long history as the UK sales agency for Berliner Studio, and in recent years this collaboration has become increasingly close and successful. Regarded as one of the world’s leading image sources, Rex has been planning to expand its existing stateside operations while Berliner, a highly respected market leader in event and celebrity portrait photography in the US, was looking for a strong partner to boost its position in the international market.

John Selby, Managing Director of Rex Features, said:
“I very much look forward to working even more closely with Alan, Alex and all the staff at Berliner.  Our shared business philosophy, combined skills, knowledge and experience will create a synergy which will allow us to deliver an unrivalled service to all our customers”.

John Selby will become CEO of the Berliner group.  Alan Berliner remains as President, while Alex Berliner will continue to oversee and develop the prestigious assignment and studio side of the business.

Commenting on the merger Alan Berliner said:
“Rex is a long-time partner of Berliner and a company so similar in quality and service that a merger seemed very natural.  I am very proud to be part of this new relationship which will benefit both clients and employees, and will continue to work towards furthering its success”

ENDS

Notes to the editor:

Rex Features
Rex Features is the UK’s leading independent photo agency. With nearly 55 years in the business, Rex has made its name internationally as a key source of image and feature content for the world’s media.

Hundreds of freelance photographers and agencies entrust Rex with the task of distributing and selling their work worldwide, and the company has an enviable word-of-mouth reputation for integrity and reliability which is unparalleled in the industry.

Well-known for personalities, news and features, Rex is also strong on travel, business, animal, humour, lifestyle, fashion, historical and stock images - and much more besides.

Berliner group
Founded in Los Angeles by Alan Berliner in 1973, the company has been a major player in event photography for over 35 years.  The Berliner group of companies comprises BEImages, a full service syndication agency; Berliner Studio, LA’s leading event studio, and Vistalux, a syndication agency for high end celebrity images for the editorial market.

Berliner has built up a priceless celebrity archive and continues to be at the velvet rope at every major showbiz event in Hollywood, Las Vegas and New York (and everywhere in between).

Berliner Studio enjoys an unrivalled reputation in assignment photography. Whether it is a Hollywood premiere, corporate public relations event, awards, fashion or trade show, charity ball or professional portrait session, the agency provides its high-profile clients with the images they need to get into the public eye.

Berliner will continue to operate out of its existing offices in LA, whilst Rex has opened a new production and sales office in Manhattan.

The Rex-Berliner partnership is backed by a network of agencies around the world and a global army of photographers who are always there when the story breaks.

Between them, the two companies provide access to over 4.5 million online images, with over 2500 new pictures added daily.  Friendly and knowledgeable researchers are also on hand to help you find the perfect picture in an extensive offline archive comprising over 18 million images.

Posted in celebrity, magazine, technology, license, newspaper, editorial, transaction, news | Print | No Comments »

October 11, 2008 by pmelcher.

It is not really the photo industry that is in danger of extinction, but rather a weird and strange animal that appeared about 50 to 60 years ago out of pure greed.

Let me explain:  When photography became a job, the first photographers were troopers who would get up in the morning with the firm intention to get an assignment, or 2, before the end of the day. They would look for both stories and clients and when they fit together, they would be rewarded with money. Publication or ad agencies would never dream of licensing images that were not specifically shot for them : how plebeian !! Photo agencies where then created mostly for photographers to share and organize resources. Since they became the repository of all images shot, they start to accumulate stock image made of past assignments. And thus, like any sound business, started to license those too.

And then, with the success of bigger Stock houses, like The Image Bank, a creepy, greedy little animal started to emerge. The stock photographer. Never did nor would talk to a client directly, they would get up in the morning with the sole purpose of taking images that could one day be licensed. Like movies that go direct to DVD, their images where exclusively shot for stock.

Armed with research analysis, spreadsheets, and a whole lot of corporate culture, they started multiplying. Mostly because their images where much cheaper than sending a photographer on assignment. There was no other cost involved than just the licensing rights. In a way, they murdered a large part of the assignment business and open the door for more photographers, with doubtful talent, to enter the arena.

For a while, a lot did well, as travel prices surged. They managed to live off the Rights managed tradition of exclusivity even thought they never shot those images for that client . And then came in the real experts. Marketing gurus with intense software licensing experience. They turned pricing around by licensing images as service rather than a product : the RF guys ( and girls).

The “stockers” got their first warning shot. Prices went down. Shields were raises, hundreds of thousands of email send out, forums, debates, heated conversation plagued the industry for a while until tales of high income started to surface. Some stockers where actually making more money than before. The second gold rush started. Everyone, suddenly started shooting RF. Agencies followed, as RF was to be the wave of the future. And it was, for a while.

Until file sharing entered the photo scene. People started exchanging their photographs, for professional usage. As the cost of maintaining  a server became too steep, these exchanges were tagged with a fee. A very low fee, but indeed a fee.And a flood of new stockers invaded the scene. Very smart ones, very talented ones, and very useful ones.If there was a market in stock photography, historically controlled by a few selected pompous “pro”photographers, then it should be for everyone.

You can still hear the stockers screaming as they are being trampled by the masses in a last effort to save their “territory” . But lets face it, we all know it is a dying breed of irrelevant photographers. Beside exploiting an immature market, they had no talent. They were the refuseniks of the assignment world, incapable of being hired for a photo shoot . And now, even their private grounds is being destroyed by the hungry masses.

So now what ? Well, besides microstockers who will, in the majority, not be able to sustain a living with their photo sales, there will be less in less “pro” making stock photos anymore. Not because they don’t want to but because they will not be able to make a living out of it. Some might be capable of moving up to assignment works, others, the majority, will leave the profession altogether. And that will be a good thing. Photoshelter’s Collection recent demise is a good example that these images are no longer welcomed on the market .The oversupply of images that we a currently experiencing, will be drained from the middle, that disappearing bread of stockers. They will no longer exist and no longer produce.

And finally, the photo world will be repopulated by photographers that really enjoy taking pictures, rather than analyzing spreadsheets. From the part time amateur to the full time pro, passion of great photography will reappear as being the leading reason for being in this industry, not greed. No more of these small business mentally photographers that thought of themselves as a superior breed. The playing field is leveled and the industry’s parasite, the pro stockers, are out.

Posted in license, magazine, technology, commercial stock, web 2.0, prosumer, Royalty free, transaction, PACA, CEPIC, Microstock | Print | 4 Comments »

October 7, 2008 by pmelcher.

In a world gone crazy, crazy things happen. In an effort to streamline their cost, previously Holland-based stock photo agency The  Cover Story is moving their offices to….Bangalore, India.

Among the many reasons that TCS offers for moving half way across the world, the company sites the ability to ” ..communicating effectively with the market and each other” ???.  Not sure how India is closer to the market and “each other“. Could this be a community they are creating in India:  a photo ashram ? Ummmmmmmm….

How so 70’s of them. They continue their announcement by saying that : “  Our team is highly motivated and the majority of the TCS crew is making the move to Bangalore. Once there, we will hire and train even more dedicated sales and production staff. We will also maintain an Amsterdam administrative office and European presence for clients and contributors.”

The staff had the choice : loose their job or move to India. Guess some where really motivated enough to leave Holland and relocate. But, if TCS  take their staff with them, how does that make them save money ? Isn’t the idea of moving to India supposed to give them a  way to hire local people for less money ? Or is everyone not only moving to India but also taking a pay cut ?  Especially since they announce  that once in Bangalore, they will hire local sales and production staff, meaning that who ever flew from Holland with them will probably be canned in a month or two.

Finally, they will still keep offices in Amsterdam and throughout Europe, making this move even more utterly and completely irrelevant.What is the point, I ask, to move the whole office to India, if it is to keep offices in Amsterdam and Europe ? what kind of cost saving is that ?

In a industry that seems to have lost its bearing and is confused by its own purpose, this goes right up there with the other company that asks clients to price their images. While it would make sense to hire a technology company based in India to redesign their website and work flow, it makes no sense to move the whole sales staff to Bongalor. Unless if there is something there that they smoke a lot and is much much cheaper than in Amsterdam..

You can read the full annoucement here:

Dear all,

As our esteemed business partners, it is our mission to keep you continually informed and up to date – not just with industry news but also with what is going on behind the doors of TCS. Therefore, we want you to be among the first to know that from November 1st TCS sales and operations office will be based in Bangalore, India.

For some it may seem like a dramatic move, but others will see the wisdom and clear benefits for our business. We all know that the media market is changing, bringing with it new challenges and higher costs. To take advantage of the new opportunities and conditions that these circumstances present, we want to move ahead quickly in developing the best podium to improve service and sales for our contributors.

Our vision for the future of the TCS creative community requires extensive software development; to improve our site but also to offer a unique platform for exposing work, communicating effectively with the market and each other, and opening up new avenues to place stories and increase revenues. Bangalore is a well known hub of technological advancement and we have found an innovative, local partner there who works with clients like World Press Photo, Canon and Sony to assist us in the execution of our ambitious plans.

Our team is highly motivated and the majority of the TCS crew is making the move to Bangalore. Once there, we will hire and train even more dedicated sales and production staff. We will also maintain an Amsterdam administrative office and European presence for clients and contributors.

We anticipate that the transition will be smooth, but please give us a bit of time to settle and get back to business as usual in terms of processing stories and responding to emails.

We hope that with your encouragement and support, this move will be positive for all of us in building a solid business model that will be instrumental in securing the continuity of our business in the changing media landscape.

If you have any questions at all please don’t hesitate to contact us.

Best regards,
[ Deleted for privacy reasons]

Posted in commercial stock, technology, license, No sense, editorial | Print | No Comments »

October 3, 2008 by pmelcher.

One idea, three companies. On the trail of the aggressive Gumgum and the smart Picapp, comes Fotoglif. The Canada base start up offers the same time of service as the two others, while it is not clear how. It is free to register, free to post. Somewhere in the equation, there are ads which are supposed to be shared 50/50 with the creator of the image. Or the agency. Since I do not see ads on the image below, I presume its the ads on their website. Nevertheless, Getty, Reuters and Splashnews have already submitted their images and more are to come.

Once again, like Picapp or the deceiving GumGum, it is nothing more than a technology platform aggregating images they do not own or create for the sake of  worldwide bloggers. Not sure who needs that. Agencies can certainly create the same technology internally ( surprised that Getty hasn’t already launched it) and bloggers couldn’t care less if they steal or not, as most of them use the “fair use” to get away with plainly stealing.

Finally, licensing images is a dying industry in its current form. It doesn’t make much sense for third party companies to concentrate on such a limited and cumbersome  model and picking up little scrap of pennies. It is going to soon obvious that there is no room for technology companies to wiggle in, not in between the agencies and their clients at least.

Fotoglif should soon come out with a press release which should help us know more about their plan .

Posted in celebrity, technology, gumgum, license, Search, editorial, web 2.0, getty | Print | No Comments »