August 28, 2008 by pmelcher.

As I was walking down the street in Manhattan earlier today, avoiding other busy pedestrians thinking about work, I noticed a bumper sticker I had never seen before. On a red background, it read : “Save the Mountains”.  Not sure if it was a serious one but regardless, it made me wonder. How come we haven’t seen a “save photography” or “save photographers” sticker yet. After all, the industry is  in more danger than mountains.

Here are a few reasons:

- Overcrowding : Like anything that we human beings like too much, we tend to use it and abuse it until there is nothing left. We are over fishing, over farming, over driving, and in the process, killing everything associated. Photography, thanks partially to Flickr, but also digital, is not only everywhere, but done by everyone. Boundaries between pros and amateurs are melting faster than the polar ice and everyone that use to have a job directly related to photography is in  more danger than Polar bears. It is not just photographers bearing the weight of the overcrowding of this field. Photo editors are also being laid off as magazines or newspapers are either shrinking or shutting down.   Photo agencies will soon also suffer from the saturated market and will start reducing staff as they will not be able to sustain their growth. After all, if photographers are seeing lesser commission, you can be sure that agencies are making less revenue.

- Technology : No one needs a photo editor at Flickr. Why? because Flickr edits itself. Newspapers website are shrinking down and more and more relying on wire service feeds. Just post the feed as it comes in, or automated it. Not very hard to do. No one really needs so many photographers either anymore.  Remote control cameras now cover what took a sleuch of photographers to do. And they don’t complain. Amateurs are shooting as well and can now very easily contribute. Although not yet successful, it would not be hard to see an agency entirely made up of amateurs. Heck !, you could get the Olympics, or the Conventions well covered by amateurs, if you organized yourself well. Thousands of eyes in every different position possible. Imagine the possibilities.

- Intellectualism : Some of our best publications have been taken over by over thinking. In a desperate effort to differentiate themselves from the commons, they  have been taken over either by “new” photojournalism or “new” fine art. Nouveau Photojournalism, we have spoken about. Holga happy reporters who seem happiest in images where you see the less. Nouveau Fine art has taken the opposite approach and is hyper realist. Close up images of uncooked eggs, deserted parking lots at night fall with heavy greenish tungsten light,  snapshot-looking photography with visible flash effects, anything that looks desperately real and slightly unappealing is in fashion. Both agree that if the image disturbs you in any manner, than it must be good. Especially if you think it is a bad photograph. Then, it is probably genius.

- Microsoft : It was a good world when Microsoft did not care about photography.  We were all left to build our own digital world with whatever tool we wanted. For a while, we had to deal with Adobe’s monopoly on photo editing, but that was disappearing. However, recently, The big Redmond giant has been working its way into the field. And we all know what that means. Nothing will ever be the same anymore. No need to explain more ( Corbis anyone?).

- Blogs and opinions : Everywhere and everyone has an opinion. Everyone is an expert. Everything and nothing is written about photography. It is exhausting. It is all over the place and nowhere. Someone should regulate it. For once thing, all the old farts that have been teaching photography in colleges for more than 20 years should be forced to retire and certainly not allowed to blog. They are frightening.  Anyone that has not sold or licensed images for a living should not be quoted on professional blogs because they try to take pictures in places where it is not allowed. It is pathetic. All these blogs are screaming for attention and readership and will write almost about anything as long as they do it everyday. Including publishing boring press releases on the size of a collection. Its obscene. stop it. It is okay not to write anything if there is nothing to say or not to publish a press release because it is stupid. Yes, I know, I do not have to read them.

All these are reasons to start a “save photography” movement. We could have fund raising parties with Karl Lagerfeld as our Keynote speaker and dance the night away. Have cool hats and T shirts with our logo. and finally, make bumper sticker that I could stick on my car…if I had a car.

who is with me ?

Posted in technology, commercial stock, magazine, multimedia, editorial, flickr, corbis | Print | 1 Comment »

August 19, 2008 by pmelcher.

  According to Sellingstock.com, the CFO of A21 just quit. Left his company. Just like that. Not surprising really when you look at A21 recent  numbers. Rising cost of operations, lowering sales, the company is heading straight for a wall, head first. Amusing part is that the only two other public or ex public companies in this business have also posted negative results for the second quarter of 2008.( Jupiter and Getty). None of them have signaled community portals( Alamy or Photoshelter) as the cause of their financial suffering . Some have accused the rising price of oil ( ya, right) and, others more bluntly, the ever shifting move from traditional commercial stock to Microstock.

Even if Getty and Jupiterimages saw Microstock coming, they both underestimated its impact tremendously. It is no longer in the original 8% of existing Getty customers that istock is eating in, but rather 25% and growing. Jupiterimages is struggling to integrate their own microstock offering into photos.com hoping to elevate the price per image. Who will be the first to shut down some of its more traditional divisions in order to save the leaking ship ?

No one knows how Corbis is doing in these hard times. Surely, their Snapvillage is not a player in the microstock field, and if the public  companies revenue are any indication, they must be hurting too. In a Bill Gates kind of way. More layoff before years end ? definitely. But not just at Corbis. expect Jupiter, A21, Getty and others to lay off some weight.

There are no clear solutions for these companies. They were build with very expensive infrastructures that do not work well with lower pricing. Although Getty’s project used to be an Internet company only, they have lost their objective and have fallen  heavy into the overhead trap. When they purchased PhotoDisc, they were going to go all speed ahead in high technology/low headcount. Apparently they got sidetracked, allowing Istock, Dreamstime, Shutterstock to continue and achieve what they only dreamed of achieving. Buying Wireimage was cute but will certainly slow down their growth considerably. They have inherited a mastodon of inefficiency, who was busier to reach high market shares rather than being profitable. Results: lots of personnel, huge operation cost, a big mess and waay too many photographers. Jonathan Klein even said himself at the last Getty shareholders meeting : Mediavast was never profitable.

Everyone knows that Getty purchased Wireimage to get rid of it, not to make it grow.

The next 3 years will see the industry giants engage in any and all enterprise that will help them cut their cost to a minimum while not engaging in significant investments. Not an easy task if they want to also grow at the same time. Certainly less of an easy task when lesser size companies are starting to move on the next step. Mostly European, these companies have grown organically using the more slower pace path of reinvesting their profit. Much more careful on their investments than the big loud 3’s, they have now reach a level of financial strength that they can now start to retaliate.

Some are acquiring, others are merging. While the corporate mend their wounds, alliance are forming  in the back alleys of the industry. Interestingly enough, most have hired ex Getty, Corbis or Jupiter staffers who have learned, from within the beast, what not to do. These agencies are extremely ambitious and battle savvy. They have all they need to succeed : knowledge, relations, expertise, endurance and cash. Most will never publicize their acquisition or mergers because they couldn’t care less about what the rest of industry knows. They have drawn a very precise path and their definition of success is  far from Wall Street . Very far.

The race is far from over : Neither Getty nor Corbis have succeeded  cornering the market. In fact, both have abandon the idea as they realized it is almost impossible. While Corbis is still figuring out how to turn a profit, Getty has spend the last 10 years acquiring companies they felt they could not compete with or create internally. Like pasting dollars bills on their obvious shortcoming.

JupiterImage is surviving only thanks to its internet properties while A21 keeps on borrowing money. Neither have a bright future, not, at least , in the photo licensing world.

A reasonable expectation is that our universe is about to see its giant stars implode. They are about to break apart because, similar to  the laws of the universe, they cannot survive under their own weight. Too much manpower, bureaucracy, equipment, replacement, fiscal obligation are making them crumble.

They ate too much.

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

August 8, 2008 by pmelcher.

 There are more and more photo business news websites yet:

- London Features International, a photo agency that has been in business for more than 20 years, crashes and burns and hardly no one even mentions it or comments on it.

- ASMP gets $1,3 million dollars LAST YEAR and only reveals it now (and only because PDN was spilling the beans). They are “not sure” what they will do with it yet. Guess they need more time to think. Is it just me or someone is fooling someone ?

- If I had half of a brain and was somewhat concerned about the Orphan Work legislation, I would look into this Copyright Clearance Center who apparently does collect money for usage. There just might be an interesting answer there, no ?

- Jupiter Images finally reveals its revenues for the last quarter and it is worse than anyone could have ever imagined. They are in negative growth with a stock price close to being under the limit.  The corporations are hurting badly, what does it say about  the rest of the industry ?

-  Microsoft Pro Summit invited spoiled little kid Thomas Hawk ( not his real name) to its Pro Summit. Anyone care to react ? The guy is a neon light loving Flickr happy rich kid with nothing else to do than blog hours on about his iphone and media center and he is considered a pro by Microsoft ? Anyone feel insulted here ? ASMP guys ?

- Its August 8 and the Digital journalist website is still in July ? Does anyone worry or care  anymore ?  ( Ok, they are always late)

- Brian Storm and his team are also moving to Brooklyn . Who in the photography world can still afford Manhattan ? Besides Corbis, obviously. Does anyone know ?

These are all important questions and no one seems to take them seriously. Someone needs to be in charge here. any suggestions ?

Posted in Jupiter, celebrity, magazine, mediastorm, web 2.0, editorial, flickr, corbis | Print | 1 Comment »

July 19, 2008 by pmelcher.

It is not the usage but the image. A flew of photo agencies, including recently Alamy, have come out with special pricing plans for blogs ( non commercial ones).  It appears to be specially arranged  to compete against  microstock, as the prices are very, very low.

Which begs the question and realization that more and more, these days, images are sold based on usage and never on content.  Since the value of an image can vary immensely from one person to another, corporations, like Corbis or Getty have just decided to ignore it in their budgets. It is a known fact that corporations hate variables. So they take a whole sloosh of images and apply the same pricing. All of these over there are RF, these are Rights Ready, and those are too old. Furthermore, they believe that an image only has a value when it is used and that value is only quantified by the way it used.

As much as simplicity is appealing, as much as it doesn’t reflect the real value of an image. As we all know, some are really easy to get ( the Eiffel tower, for example) and some are really hard ( Angelina Jolie posing with her newborn twins) . One would never apply the same pricing rules to those 2 images, if one was a little versed in photography sales. But it doesn’t seem to be the case anymore. In between these two images, exist a whole range of pictures that are either more or less easy to take and also, have added value created by the photographers themselves ( the Eiffel tower taken by a National geographic photographer).

Example:

let say I take a nice image of the Eiffel Tower.  Nothing special. I license this image to a blog. I get 5 cents. Same image, I license it to Microsoft worlwide 10 years unlimited rights desktop usage. $60,000.  Hmmm… what is the value of my image? 5 cents or $60,000?

But more important, is it really the usage of my image that defines its value ? Shouldn’t be the image itself ? More like a painting ? You will buy a Picasso for millions of dollars regardless you put in a closet or decide to attach it on the walls of the British Museum.

Aaaaah, but photography is not art, you will say. You cannot compare. Well, my friend, why would an Angelina  Jolie and Twins go for a cool $11 million ?

Well, it is not the photographer that matters here, it is the subject, you will argue.

Absolutly !!! my point exactly. Photography is even more wicked that its value is not even obvious by who took the image, but what is on it. Sure you have the Masters who commend a certain price. But the bulk load of images are taken by complete unknowns that will remain so. But some of their image will command huge prices.

Because of how they are used? Or because of their content?

At this point you have to agree with me.

While editorial agencies are very aware of the statue and value of their image, stock couldn’t care less. Here, you can have all these images for a penny an image, because after all, no one comes and visits your site. Well, that is terribly wrong and reinforce the idea to clients that photography is a commodity. If someone doesn’t have the budget to pay for a great image, too bad, blog or no blog.

There is value in some images and client should pay for that value.

On another completely unrelated note:  Rumors are spreading that Getty and other wire service are asking their news  photographers to shoot  events with commercial stock resale in mind. Meaning that those  photojournalists no longer shoot what they see but try to , for example, to purposelessly blur peoples faces in order not to need a model release later. To maximize the lifetime potential for an image. As much as it make sense for the agency, as much as it is digging a little bit more in the wound of photojournalism, making it less and less credible every day.

We will probably see more and more denature photographs of world events as photographers will try to cover them on a more “stocky” way .

Posted in photojournalism, license, celebrity, commercial stock, transaction, editorial, Royalty free, getty, corbis, news, Microstock | Print | No Comments »

July 10, 2008 by pmelcher.

As per a press release of today : “Open Text Corporation (Nasdaq: OTEX; TSX: OTC), a provider of Enterprise Content Management (ECM) software, has acquired eMotion LLC from Corbis Corporation of Seattle, Washington. Open Text purchased the division for approximately US $5 million, net of cash and assets, effective July 2, 2008.eMotion is a provider of hosted business applications for managing digital media assets and marketing content. eMotion is headquartered in Seattle and has an office in Rockville, Maryland.

Corbis acquired eMotion, Inc. of San Francisco, California for an undisclosed amount in July 2005.

Corbis is a visual media provider for the creative community, licensing the widest array of award-winning contemporary, historical and entertainment photography as well as extensive collections of acclaimed illustration and footage.

Waterloo, Ontario based Open Text is a leading provider of Enterprise Content Management (ECM) software solutions. It offers a wide range of ECM products that help its customers ensure compliance with industry regulations and internal policies, controlling information flows, and helping solve other content-intensive business challenges. Open Text currently employs approximately 2,700 people worldwide.”

end of press release.

credit Techfinance.com

In 2005, Scott Wilson, CEO, eMotion said : “Corbis and eMotion’s services are a natural complement,”

Mmm. I guess not. At least not long term.

“Our clients are increasingly seeking ways to manage the still and moving imagery they use in their creative projects,” said Mark Sherman, about the deal, senior vice president of assignment & representation and emerging businesses at Corbis, at the time.

I  believe he got fired since.

One year later Business Week Magazine added ( 2006):
“A year ago, finishing off a year when revenue rose 20%, Corbis’ leaders confidently predicted that they would turn the company profitable. That didn’t happen. Instead, organic revenue growth slowed to 4%, though overall growth topped 34%. The total take was $228 million, thanks to the company’s mergers and acquisitions spree. (Getty Images grew 17.9% to $733.7 million, mostly organically, and pulled in $150 million in profits.)”
Ouch !!

the  same article continues:
“Corbis’ acquisition spree was partly aimed at placing bets in emerging markets. For instance, last July the company bought eMotion, a provider of hosted digital-asset management software. Yet image licensing remains a dominant part of its business. To boost profit potential, Corbis is beefing up its own collections and the custom-photography service, which involves assigning photographers to capture images. “end of Business Week Magazine quote.
You remember that guy from Star Wars Episode I ?  The Rasta guy with the tongue sticking out after being caught in the electric field of  Anakin’s pod racer ( do i sound like a geek right now?) ?

Well, whatever his name is, that is the Corbis management right now: tongue sticking out saying : blabadabaaaadabadaaaaa. Bladaabadaaaaaaaaaa.aaaaaaaaa.

Corbis ex- CEO, Steve Davis said, according to the Corbis press release, at the time: “In 2005 we doubled our global footprint ( How the hell do you double a footprint ? With bigger feet ?)  and rounded out our content and service offering. As a result we are the only company in the industry with the ability to provide comprehensive solutions—great content, the rights to use it, and the ability to manage it.”

And  I should add, big feet …

Shouldn’t someone have smelled E-Motion footprint at the time,because, apparently, it smelled bad. Certainly, not the sweet smell of success.

By the way, how much is a “footprint” going for these days ? 1 dollar a footprint ? what the hell is a footprint in photography ?

Gaaaaaaaaary ? any idea ? where is Gary anyways?

There he is (or was):

British Journal of Photography july 4th 2007, reports ( almost exactly a year ago):

“Days after taking on his role, Corbis’ new CEO has slashed 160 staff in 17 offices worldwide.

Gary Shenk took over from Steve Davis on Monday (02 July 2007), but the decision to cull 15% of the company’s workforce was announced late last week. The job losses are as a result of a three-month strategic review, led by Shenk and his management team, which is driven by the ambition to pull Corbis into profitability for the first time.”

and probably out of the “footprint” business.

the article continues :

“Corbis is also to sell its Digital Asset Management (DAM) division, which currently manages media libraries for large corporations. The service, which was officially launched only last summer (BJP, 16 August 2006), came about after the acquisition of eMotion in 2005. Like the Assignment Division, it has been performing well, says Perlet, and has won 25 new customers in the last 12-18 months.”

I guess ( actually, I know) Corbis hates, just painfully and  physically hates, anything that performs well.

E-Motion:

Bought in 2005,

analyzed in 2006,

destroyed in 2007,

sold in 2008.

Welcome to the club, dude.

Corbis  does it, again

Posted in Canada, technology, commercial stock, multimedia, No sense, corbis, transaction, finance, getty | Print | 1 Comment »

July 8, 2008 by pmelcher.

By now, you must have read all about the Getty Image/Flickr deal. In a nutshell, Flickr announced that Getty Images has the right to go through the Flickr collection and pick and choose the images that they want to distribute.

Now, seldom know that Flickr has been shopping around for the last two years for a way to license its content. They have approach many existing companies in order to investigate their options. I am not at liberty to say which but lets just say they are not your traditional mom and pops. But like with any huge company, time is not an issue and most potential, at first very excited, ended their conversations with a resentful puff and walking away with what everyone thought was a goldmine. When you looked closer, it is more like a coalmine. Lots of digging for little return. One huge issue, is that, although Flickr has a clear copyright policy, most people don’t care and upload whatever they want anyway. Since nothing is for sale, no copyright infringement lawsuit has ever surfaced, but most certainly a lot of “cease and desist” notices have circulated.

The second very important issue, is that Flickr has a beautiful facade, but behind it,  lies a dump yard of crappy snapshots. Their “Interrestingness” engine is a model of programming done with genius. Only the best images  surface, hiding the ugly muck below.

While these talks where going on, some mash up 2.0 companies tried to take advantage of Flickr’s API to lure users to shift platforms and take advantage of their licensing engines. That was a lost battle as Flickr monitored those links very closely and shut down  any one who  apparent motivation was money. No more than a little slap on the hand.

Getty, having a whole department in charge of making new deals could simply  not let go. These guys lose their job if they do not make any new deals. So they came out with this wackadoodle arrangement: Flick makes deal with Getty Images.

Wait a minute, Flickr doesn’t own, nor does it represent any of its content. It is only a sharing platform. How can they make a deal on behalf of their users ? They can advise them, yes, but certainly not make a deal for them. Getty will still have to ask each and everyone of them for permission to license their images. But be no fool, this has been going on for a long time. I do not know of any photo agency that has not already contacted users of Flick in order to represent their work. And those who didn’t are either fools  or not in the commercial stock business. This deal doesn’t change that, as Flickr cannot dictate anything to its users.

Furthermore only Getty, or its retarded companion Corbis, could afford such a deal. It will take them a huge time to edit through the content and find the pearls. And that is money spend, not received. Let’s say they do find a photographer with great talent, nothing guarantees them that he or she will sign up with them. Nothing at all. Or they have might have already signed with someone else. This is Gargantuan work for little return.

This deal is just a pack of hot air. We all know that Getty is no fool and that this is just a big PR balloon. It will fly, get some people very excited and overheated, and just disappear after a short sting.

What is however captivating is that Getty now officially announced, with this deal, that it can no longer trust its own suppliers or photographers with providing them with the right images. It is  also an admittance of the failure of both  their internal “creative research and intelligence” and in its long held belief that it had secured the right partnerships. To proactively and officially reach out to amateurs is sending a loud and clear message that their current content is not adapted anymore.

After thought : So what happens to those poor pro photographers schmucks who paid $50 dollars to get their images on Getty Images under the brand “Photographer’s Choice“? Let me get this straight : you’re an amateur and upload to Flickr, Getty images includes your images for free. You are a pro unwilling to upload to Flickr, maybe because you don’t want then stolen and you have to pay $50 per approve image ? It doesn’t compute

Posted in Search, license, technology, commercial stock, yahoo, web 2.0, corbis, finance, flickr, prosumer, getty | Print | No Comments »

June 27, 2008 by pmelcher.

“We think Corbis has the resources and patience to succeed in the long-term. We will beat them with better [commercial] execution” Gary Shenk, CEO of Corbis to the Sydney Morning Herald.

There is long term and than there is eternity. Corbis is gambling that eventually, one day, when no one is looking, for no particular reason, ( probably because there is no one left on Earth), just like that, they will “succeed” and maybe post a profit along with it.

The SMH article is  about the rise of amateur photography and  Snapvillage, the Ireland based subsidiary of Corbis that the money loosing company has build to  compete with Istockphoto and other Microstock.

Posted in Midstock, commercial stock, prosumer, finance, corbis, Microstock | Print | No Comments »

June 26, 2008 by pmelcher.

I am a big fan of coops. Initially started in France, Magnum being the most famous one, Coops are small photo agencies created by a group of photographers who pool their resources in order to survive. Most do not last very long, because, along with the financial pressures, getting along amongst photographers with a lot of personality is not a easy task.

That’s what a coop is, really : a group of very individual individuals with a very strong ego. Thus internal fights and argument are quite frequent and explosive. Nevertheless, although very rare in the US ( VII being the exception), coops are striving in Europe. Not just France, but Belgium, Switzerland, Sweden and Italy. You have to have that socialist edge to create or be part of a coop, not really an American thing.

Photographers who belong to those coop have complete editorial freedom and shoot what they want, when they want.It is not always favorable to great business, but it allows for genuine photography. And that is where they are very strong. Far from the hard news already covered by countless wire services and photo agencies, Coop photographers tend to cover the unexpected and forgotten. In a industry now only obsessed by speed, they take their time. They do not produce much or fast and sometimes tend to over think their images. But nevertheless, you might be surprised. very surprised.

PictureTank, the Coop of Coops, or rather a platform that allows for different agencies to pool their images in one place, is a great way to discover and follow the work of many photographers. Presented in full sets rather than single images, it displays the story the way they were meant to be shown. It carries a full respect for the photographers work.

These agencies are not affected by Getty or microstocks. Not even Britney Spears worries them as they all seem to have made a vow of poverty. They understand that the path they have taken will not lead them to stardom or richness ( material, that is), but like priests of a Godless church, they have decided to devote their lives to photography. They cannot be touched because their world is not made of nice cars and expensive restaurants. They care about their work and nothing else.

Not all are good, far from it. You probably have the same ratio of good to bad than anywhere else. Some are helplessly useless while others shine like diamonds. No surprises here.

At a time when photography is all about numbers, dollars and no sense, where photo magazines worry about a supermodel’s ass while others are proud of their scatological content, where  Alain Meckler admits failure even in trade shows production and Corbis remains hopelessly in the red, it is good to see some fresh production.

Posted in photojournalism, Search, magazine, Magnum, wire service, slideshow, getty, corbis, france, editorial, Microstock | Print | 2 Comments »

June 19, 2008 by pmelcher.

When Brian Storm speaks, the world of photojournalism learns. The Poynter Institute, a journalistic school, has a 26 minute long interview with the founder of Mediastorm. The interview, being held in front of a boring backdrop by a girl who obviously needs some more courses in broadcast interviews could have used some visual pointers to go along Storm’s amazing insight.

Posted in multimedia, mediastorm, magazine, technology, newspaper, photojournalism, news, editorial, msnbc.com, corbis | Print | No Comments »

June 8, 2008 by pmelcher.

What do you do when you have a lot of money to spend on marketing ?

- You can create a false on line museum like Corbis did with the MofAA. A bit confusing and not quite sure how it well help sell more images, it is, however certainly a conversation starter . Anyone noticed how, since the acquisition of Veer, Corbis marketing has suddenly matured into new heights ?

- Create a cool website. Getty has created Moodstream so you can stream your mood. Mixing music, video, stills, one can set up their own customize stream. It does lead to a place where you can learn more about the visuals and maybe a sale.

Both seem to have been put “out there” in the hopes of getting discovered and go “viral”, what the French call Buzz marketing. Corbis has even set up a page for their Museum on Facebook  hoping to generate traction. Both companies are hoping to tap into the high end coolness factor, trying to aggressively difference themselves from the plebeian microstock and its inbred word of mouth.

Hard to say if either initiative will work out, although it is quite obvious that both put a lot of resources into these efforts. Pro creative will certainly be amused and impressed by these internet playgrounds, and some might even be tempted to license some art. The results, with a less culturally savvy crowed, are dubious at best, especially for the Corbis experiment.

Time will tell which is the right path to sustain, or increase, RM or Traditional RF sales, and if any are a customer magnet.

Click on the images below to visit:

Posted in web 2.0, technology, commercial stock, slideshow, corbis, Royalty free, getty, Microstock | Print | 1 Comment »