February 5, 2010 by pmelcher.

So, there was something very interesting about the photo news the week. On one side, you have the mighty Getty ( aka, the whale) who took a deep plunge in pricing with its subscription RF offering, combining microstock and pro , and on the other, legendary Magnum who manage a great coup by selling some used prints for an estimated $ 30 million dollars.

Like two extremities of the same stick, this is a great reflection of where the business of photography stands today . On one side an entity that has reduced its photography to a cheap commodity to be sold as individual snapshots and on the other, a photographers coop that is so highly respected that it can sell old back and white prints full of written notes as highly valuable historical artifacts.

Yet, both are selling the same thing : photographs . According to numerous interview given by Mark Lubell, director of Magnum New York, one key condition for the members of the coop to approve the sale was that the images would not be scattered and sold as individual entities. Magnum photographers have a long established tradition of selling pictures as a story, a group of images, that tells a story. It has been numerously debated, over the years, that Magnum could have maybe had made more profit if it had broken  these stories and sold them as individual images.

But none of the photographers-creator would have it any other way. Shot as a story, sold as a story. Part of the condition for the deal with the Michael Dell owned fund is that images cannot be separated from the story they belong to. On the other end of the spectrum, Getty does the exact opposite. It extracts images from their context, their stories , and sell them as individual files. There motivation is that the image, alone, has more chance of finding a buyer than a group of images, sold as a story. Also, individual files sales  can easily be automated while photo essay, and photo journalism in general, needs a pitch, an explanation, a real human sales person.

And there is where a key differentiation appears that is reflected everywhere in the marketplace. If your business is about licensing individual files, then its all about volume. You do not take a proactive approach to selling. Instead, you try to cover any possible potential need for an image that could humanly be conceived. You stick them in an archive. And then you wait . You wait for a buyer to come and be hooked. or not. The market creates the demand.

If you license a photographer’s work, a story, a career, an inspiration, the approach is completely different. You cannot wait for a client to come and find it. You have to go out and fetch it. You have to take the photographer’s work, find a potential client who could be interested and close the deal. The photographer, in this case, creates the demand.

If you want the market to create the demand, the prices are low, very, very low. If you create the demand, the prices are high, very high.

Unfortunately, most photo agencies these days have gone the route of competing with each other on the individual file sales path. Mostly because it much easier, cheaper, and demands almost no special skills. The more the agencies, the more the offer, the more prices go down. Getting amateurs to fill these image banks has recently greatly lowered the costs, with the pervert effect of also lowering the prices.

Magnum, and others, like Contact, Redux, PictureGroup, Aurora have deliberately chosen to represent photographers’ work and not distribute individual files. Their production is the reflection of its chosen creators, their image bank set up to license stories , and their sales staff experienced in the complex art of pitching. Sure, it’s more expensive and much more complicated. It demands talent and sometimes obstination against frustration. However, the prices are dictated by the value perceived by the creator, not the by the market. The result : deals like Magnum just made.

In photography, it’s not the market who dictates the pricing. It’s how you present it.

Posted in magazine, celebrity, technology, Cosmos, Aurora, commercial stock, license, prosumer, getty, Royalty free, news, editorial, photojournalism, transaction, Microstock | Print | 1 Comment »

February 3, 2010 by pmelcher.

It’s not photography that is sick and dying, it’s the people that handle it. Sure, there has been dramatic bankruptcies, like Grazia Neri , l’ Oeil Public and now Eyedea Press ( that one was a long time coming). On the other hand, there more than a billion of images on Flickr, more on Photobucket, and Facebook. There has never been so many cameras in the streets and so many people interested in photography. With the Internet, there has never been such a demand, and need for images. Smartphones, Ipad, tablets, netbooks, are only increasing the demand for stills.

Yet, pro photographer can’t seem to make a living anymore, while photo editors have either no budget or are being laid off by buckets. So what is wrong ? Well, for one, it’s those who manage photography that are sick. None of the old and current guard have any idea how to take advantage of this Tsunami of demand. It’s leaking from all over the place. The only made with Flickr was when the original founders sold it to Yahoo. Since, it’s been bleeding cash. Instead of creating tools to allow members to license it, they passed it on to Getty Images to try and squeeze some money juice out of it. It could take decades, if not century for Yahoo to see a return on investment using this route.

While magazines are dying a slow and painful circulation death, there online counterpart have yet to be succesful in generate the same revenue as they used too . Why, because they keep on trying to replicate online what has been a success in print. The fact that its not working doesn’t seem to bother them. They keep on trying.

Photographers still shoot the same thing, the same way, for a clientele that is shrinking, both in size and resources. They desperately cling to old formulas that they hope will resurface some day. Not going to happen. And finally, photo agencies try to hang on the slippery slop of declining revenue by agreeing to cut fees in the hopes there is a trampoline at the bottom of the hill. Not there.

Everyone is playing the waiting game, hoping that some savior will find the magic solution. In the mean time, they are all guilty of killing photography by undervaluing it. It’s has become a commodity, some say. Other offer ridiculous subscription model, feeling comfort in the fact that mass production Getty does it. All whine all day, all night, all the time.

Stop whining. Do . Try. fail. Try again. fail again. Who cares? You will make progress. And if you are lucky ( or smart), it will work. Better than you had ever expected. It’s not obvious. But the market is there. The current model doesn’t work, we can all agree on that. So, try new ones. Take advice from no one. Just do. It will hurt, it will be frustrating, it will be exhausting, it will feel incredibly useless, it will not work. But it’s so much better than whining all the time. Stop waiting for something to happen. Take control.

Posted in license, multimedia, prosumer, copyright, magazine, commercial stock, technology, focus, flickr, photojournalism, news, getty, Royalty free, editorial, transaction, slideshow, finance, Microstock | Print | 1 Comment »

February 2, 2010 by pmelcher.

Well, not exactly. The Investment firm MSD managed by Michael Dell, the founder of the famous computers, has acquires 185,000 prints from the Magnum collection. The sum? undisclosed. But it is rumored to be the largest photo transaction in history. The terms, also unclear. Magnum retains the copyright and the  licensing rights.

So what did the MSD acquire ? Well, probably just that : 185,00 prints ranging from the the 1930’s to 1998. The prints will reside for now in Austin, Texas, Harry Ransom Center for 5 years. After that, nothing is known.It is certainly a well thought out coup for Magnum which has been struggling with financial issues for decades and avoided multiple acquisition schemes launched by the Corbis and Getty’s .

This will give them a financial security to continue to operate independently for a long while without losing their cherished independence.It is also great news for photography lovers. Not only Magnum escapes the claw of the greedy corporates and their notorious incompetence but there is a good chance this collection will travel across the world for viewing by even more people.

Finally, since Magnum is a co op, there is a very good chance the photographers themselves retain the majority of this financial downfall and they really, really deserve it.

PS : estimates put the deal at $100 Million. That is about $500.00 per print. Is that a good deal ?

More here  at Bloomberg news 

Posted in photojournalism, copyright, Magnum, finance, transaction, corbis, editorial, getty | Print | No Comments »

February 1, 2010 by pmelcher.

Finally..all in one place. Micro and traditional RF have finally united in one, simple to use, website. The entity behind it ? Well, Getty Images, of course. Some were already playing with it, others were staying away from it, Getty jumped in it, two feet at a time.

No more of this ridiculous RF branding that presupposed that RF image buyers are actually faithful to brand like they would be to a car manufacturer ( oh, dear, I only buy Honda’s) . They need an image quick and easy, and that’s all. They don’t care if it was shot by Joe Boobleeboo or that guy that grossed millions of dollars last year ( ya, right).

Because the pricing is by subscription only, there is no price comparison. Thus images are downloaded based on their value to the customer, not by how much they save. Amateurs are now on the same level as super pros ( are they any left in the RF space ?) . Meta search engines like SpiderPic can stuff it as the cannot compare pricing.

Getty has finally broken a few old barriers here and fighting back against its odd competition. Shutterstock, as well as the Alamy’s and other volume based image banks must be shaking in their winter boots. There is volume her, there is extreme ease of pricing, there is very strong search capabilities and most important, there is superb ease of use. No more of this pricing on size, no more pricing based on collections (or brand), no more of different offering/different sites. All in one place.

Furthermore, once downloaded once, an image can be used over and over without any additional license fee. Thus big companies ( book publishers, corporations, small image intensive design companies) can easily create a in house database and store images until they need them again: for free.  Why need to go anywhere else? This is going to suck the air out of a lot of RF based businesses ( that was predictable) by attracting a lot of customers.

Pay once, download once, use infinite time is something that we are probably going to see expand like a wildfire through the industry for a multiple of reasons : Poor or nonexistent DRM, inefficient tracking systems, expensive legal process, especially for RF.

This new launch by Getty will certainly have a huge impact across all aspects of the RF photo sector. It will be very interesting to see who will try to compete via others means, and those that will just decide to shut down. One thing is sure, there is no turning back now.

By the way, this is the same model that they plan to roll out for editorial usage very soon. (more on that another day)

Posted in license, technology, commercial stock, Midstock, Search, Royalty free, getty, prosumer, Microstock | Print | 8 Comments »

January 28, 2010 by pmelcher.

Must be something in the air… First, there is the mighty Getty, the company  that has invented photography according to it’s CEO, who launched a new interface. Users can now select what country they are from so they can get a more customized offering.  Here is how it looks:

That looks great, right? Except, they forgot the USA. Which is their biggest market . Man, those meetings must be fun.

Than, there is the always funny Corbis. In an interview for the BJP, a highly place executive try to explain the recent Veer  realignment from high end RM to microstock. Never mind this fits perfectly in Corbis’ history of destroying the brands they acquire, he says : ” To make that happen, he explains, Veer will ‘remove rights-managed images from the site when we launch the new offering.’ However, Nerland tells BJP that the images will continue to be sold on the Corbis website, which is targeted at ‘more traditional and sophisticated customers.”

“sophisticated customers” ? Does that mean Microstock customers are trash ? a bunch of trailer park hoodlums with greasy fingers ? Do they smell bad too ?

The same person proceeds to intelligently explain: “Nerland assures BJP that overall prices for royalty-free images will not go down as a result. However, he adds, ‘some images might migrate down in terms of price point, especially for content that we own.’”

Aaah, that makes sense: price images according to who owns it instead of their quality. Sure. So if they acquire Cartier-Bresson collection tomorrow, that would be cheaper than images of that schmuck over there who loves to shoot businessmen shaking hands. Brilliant !

Told you. Must be something in the air. The Corpocrates are loosing it.

Posted in technology, commercial stock, No sense, finance, getty, corbis, Microstock | Print | No Comments »

January 27, 2010 by pmelcher.

Before we go any further ( we spoke about the Ipad here already anyways), we need to point out something extremely important. There are people in this industry, when they talk, you listen. Jonathan Klein is one because who knows what other damage he will create with his roller company  and he lies a lot ( according to Klein. “We were the first people in the world to sell an image online,”). Ellen Boughn is another.

For those who don’t know Ellen ( are they any?) , let me explain : Ellen is one of these extremely rare person that have done it all. From editorial, to commerial stock, royalty free and Microstock, she has been deeply involved in every facet of this industry. Unlike others, she has gotten herself dirty with all aspects of licensing images from production to sales, from little to giant corporation. She has seen everything and pays attention to everything. She has an insight that is only surpassed by her intelligence. There is nothing that scares her and she has the curiosity of a 10 year old. She has met everybody that is anybody in this business and yet respects everyone the same way. She has a passion for photography that would put to shame anyone. She is so good that his master himself, Henri Cartier Bresson, offered her a signed print, something that he extremely rarely did.

To top it all, she is an independent thinker. She will tell you things the way they are, regardless of the consequences. She knows no camp but excellence and truth. Her incisive mind can be brutally honest  because she is not scared of anything or anyone.  She is an encyclopedia of knowledge that you will never read anywhere ( unless she publishes more books). She is one of the reason why I love this industry so much : It attracts some of the smartest, intelligent, witty, knowledgeable people on the planet. People with a vast culture and yet  constantly curious about everything.

Why do I write this ? Because Ellen has started her on blog. And if you only read one thing, that should be it. Amateur, pro, super pro, whatever side of this industry you are, this should be the first thing you read. You will never be offered such a rewarding experience, for free. So, stop reading this and go bookmark her blog and hold on to you socks.

http://www.ellenboughn.com/blog

We are not worthy..

Posted in license, multimedia, magazine, technology, commercial stock, Magnum, web 2.0, photojournalism, getty, Royalty free, corbis, editorial, transaction, Microstock | Print | 5 Comments »

January 26, 2010 by pmelcher.

We are going to see a lot of desperate moves this year, in the photo industry. In an attempt to stay afloat in a depressed market, photographers, as well as photo agencies , will resolves to off the chart, crying for help, strategies. There has been many examples already, like the name your own price to pennies a pictures, none succeeding in making anyone rich or succesful. RF is already plagued with so many discounts and “special offering” that last all year that it is now almost impossible to purchase them at full price anymore, even if you wanted too.

In the footsteps of Getty Images, other smaller agencies beleive that the subscription model is the way to go. Enter Photoshot ( at least in Germany) . Owners of such collection as : NHPA, Bruce Coleman, UPPA, Woodfall Wild, Oceans Image, World Pictures, Photos Horticultural, StarStock, Talking Sport, World Illustrated, Photoshot Archive and Photoshot Creative, it is now offering…are you sitting down ?  Unlimited use of Photoshot’s rights managed images for 3 months for a flat monthly fee of only Euro 400 per month.

Right : for $400 Euros, you can use as many images as you want, for editorial use ( and some advertising) for three months. The license for these images , actually last for a year, if you read the fine print. So, for what used to be the price for a full page in a magazine, for a week, you can now publish 3 months of the same magazine.

The thought is probably that you will like the images soooo much that once the subscription is over, you will continue to purchase images from Photoshot at full price and make them unbelievably wealthy. Here is the reality. Why would anyone in there right mind go back to purchasing the same images for a regular price, when you got them for practically free. The exact same images.  Also, how is a three months subscription helpful to anyone besides a company that does not intend to use images after three months. Finally, if some of theses collections are commission-based, it will be a nightmare to track and pay those photographers.

The real issue here is that, even for non subscribers, you have devalued your collection so much that no one can take you seriously when you then ask for regular prices. How do you explain why an image that use to cost pennies before, suddenly goes back to hundreds, if not thousand of dollars ? if it is cheap trash, then it should remain so.

Of course, this company is not the only one, nor the first one, to turn to irrational pricing in order to save its bank account and keep creditors at bay. But, like the others, they just damage the market for the rest of us that have not lost our minds. As we once said, the photo industry is like driving a car, if you don’t know what you are doing, you are a danger to the rest of us.

Posted in license, celebrity, magazine, commercial stock, No sense, finance, getty, editorial, transaction, Royalty free | Print | 1 Comment »

January 10, 2010 by pmelcher.

Let’s review. Up to now, USG, or User Generated  Content, has dramatically and irrevocably changed the Commercial stock photography landscape. It has brought it down to a commodity by not only bringing the prices down to, well, the prices of a commodity, by making it even more widely and easily available ( no need to call a bored Account Executive anymore) and finally, by not passing the cost of production to the customer. No real news here. However, will it stop here ?Definitely not. UGC has made some roadway in the Video footage world ( Numbers not really available, yet), as well as in the editorial space.  The commercial still space is so overcrowded that, besides the companies offering the distribution ( Istock, Fotolia, Shutterstock), no one will be making money anymore. The top photo producers  of this space are all suffering 40% or more decline in their income and it is certainly not due to the Recession. It also shows no sign of picking up. It’s a dilution effect, quite expected for a Long Tail type of business. So what next ?The editorial space. We have seen some somewhat failed attempts up to now. The news oriented site like Scoopt and others did not succeed in creating enough traction to get consistent exposure to allow them to become a major distribution channel. Demotix, lately, was the talk of the town during the Iranian revolt, only to quiet down ever since to a mere murmur. Without regular income, it is also destined to fail.  News is a very hard, yet not impossible, segment to convert to UGC.  Mostly because the market is already very well served with wire agencies who can deliver pinpoint images extremely fast. Amateur do not have, yet, the reflex to send images out very quickly. Furthermore, they are the first one to be evacuated of a dangerous area, if they don’t leave themselves first. Finally, with current prices and lack of medium, it doesn’t have the appeal of volume that the commercial stock market has. Doubtful that a company will ever succeed in being a UGC only news photo distributor but not impossible that one of the existing distributor, be it Istock, Shutterstock or Getty increase their demand and offerings. Of course, since they will no longer incur the cost of helping a photographer get those images, they will be more apt in lowering their prices if needed.But what about other editorial spaces. Celebrity for example ? Shutterstock is already being trying to perforate it by helping amateurs cover movie premieres and other events that need official credentials. It is unknown how much success they have had in licensing those images, but if credit in publication is any indication, it is inexistent. Not many have followed yet because of the poor prices, huge already existing volume and the added cost of production. After all, Shuttertsock needs a full time person to call, email or fax those publicist and get approved to cover. Not something they do for their commercial stock contributors. Finally, since the red carpet coverage is also already invaded by low pricing photo agencies , it doesn’t make  the UGC pricing special or appealing in any way.What else ? Well there is the street paparrazi stuff. With rumors of images being sold in the thousand , if not millions of dollars, it is a very interesting space. No credentials needed, no risk involved. With celebs twittering their every move or blogs exposing their schedules openly, it is very easy for anyone to find them. If you add the flock of Fame whores who demand to be taken in pictures, well, there is plenty. And you do not need much. Even a cell phone is adequate to snap a celeb in the street. No need for heavy or expensive equipment . And since prices are still quite high, the appeal of lower priced images will be a huge draw for some dying publications. Thus those companies who have been living quite nicely thanks to a small army of tip filled street paparazzi are slowly seeing a rising competition of week end paparazzi’s who would gladly take half of what they are making. If not, 1%. Because like the UGC crowd, they have other jobs and could really care less. Having a picture published will be a treat by itself.Of course, existing Pap agencies are doing all they can to avoid such a leak. They now all offer, on their site, an upload button for those amateurs seeking a representative. But that will not be enough to stop the bleeding.These Pap agencies all know that is doesn’t require any skills to take these images, as they themselves have been employing hungry beginners, fitting them with cameras, showing them where to press the button and telling them where to go. But in this game, the masses have the lead as every celebrity has a neighbor. It will not be long now before we see this market also become flooded with part time shooters looking to make a quick buck on a sunday afternoon. It will not take long now before the prices of street celeb photography will tumble to un-previously known depth.Sure, most people in the photo industry will not care. However, as walls keep crumbling down, everyone is affected. Like an earthquake, it is just not the epicenter that suffer damages.

Posted in celebrity, magazine, commercial stock, license, photojournalism, getty, news, editorial, Microstock | Print | 6 Comments »

January 7, 2010 by pmelcher.

(see Italian version of this entry on Poterefotografico )One of the leading explanation for the disappearance of the Neanderthals was that they could not adapt their tools to  the new conditions surrounding them. They were stubbornly trying to use those they had and adapt them. Obviously it did not work and they vanished.It is said that they might not have had the mental capacity to understand their conditions and were genetically doomed anyway. Since the invasions of the corpocrate in the photo industry in the late 90’s and early 00’s, brought forth by companies like Corbis, Getty and the now defunct Jupiter/A21, it seems that we are seeing prehistory repeat itself.Armed with poorly adaptable tools inherited by their MBA schools, a steady stream of self assure corpocrates have slowly invaded the photo business trade.  They have tried to adapt the industry to their tools rather than the opposite. An incessant flow of un-passionate executives coming from all kind of non photo related backgrounds have the taken the helm of these companies, utterly convince of their superior business understanding, only to be spit out a few years later. Regardless, they persist. The amount of ex Corbis, Ex Getty or ex Jupiter executive who had no previous experience in the photo industry before they entered those companies and have now opened some kind of photo related business is frightening. As if a failed stint in these corporation have made them suddenly experts. Some open RF photo agencies ( the majority), others become Success Coaches or marketing experts ( with newsletters or blogs) , while others create “one trick poney” companies that have no chance of surviving. They all have in common this pathetic idea that somehow, somewhere, they received the magic touch from the Photography gods and they have seen the Light.While all these ex open their useless shops, their old companies replace them with new batches of fresh executives, as clueless as they were, in the hope that someone, anyone, will figure out how to make these tools fit the market, or the opposite.All this would be amusing if it wasn’t for the fact that in the process their are destroying their own market. Because this industry is not, or poorly regulated, anything goes. And like a bunch of irresponsible farmers, they are creating there own dustbowl. Obsessive and poorly equipped for change, they try over and over,  to survive, or grow, by applying their inadequate solutions.It is not photogrpahy that is dying.  Actually, it is doing just fine. It is the Business of photo licensing. From publishing CFO’s convinced that by cutting their photo department they will revert the incessant decline of their publications to photo agency executive who beleive that by cutting their prices, bankruptcy will ignore them, to photographers smiling when they receive commission check with sales of 11 cents, there seems that there is no shortage of Neanderthals these days.Most of this is driven by fear. Fear of change, fear of losing , fear of even trying.  Those who’s responsibility is to create and  license professional grade images are paralyzed by fear. Mostly because they  shortsightedly beleive that on the other side of change there is chaos, death and emptiness. Just like their ancestors did.Sure, they don’t eat as well as before, and sure, they do not travel as much and sure hard times demand sacrifices. But something is better than nothing, right ? And the solution is right around the corner, isn’t it? someone will find out what to do and then I can follow their example. Right ? Why would I change what I have been doing for so long. I didn’t do anything wrong. Things will come back to what they used to be. Right ? right ? Can somebody please answer me ?5 years from now, this landscape will have been completely transformed. It’s going to be a painful carnage ( it has already started). The first to go will be those who fear.

Posted in photojournalism, license, Jupiter, commercial stock, finance, transaction, getty, corbis, editorial, Royalty free | Print | No Comments »

December 24, 2009 by pmelcher.

Today should be a day to rejoice, worldwide. People all over the world close their doors, and eyes, from the surrounding world and regroup in their family cocoon to enjoy a few hours of peace and serenity. Outside, the battles still rages creating more casualties.

French newspaper le Monde just announced that collective photo agency, L’oeil Public, was filing for bankruptcy.  For those who only care about what is happening in their own country, or even backward, that might mean nothing. However, like a upcoming storm, events that will soon be over your head tend to start somewhere else. L’oeil Public was one of the most successful collective in the past ten years. Composed of a handful of very talented photogrpahers, they had managed to elevate social photojournalism to new heights. Mostly specialized in french social events, they were not afraid to tackle international events if they deemed important enough L’oeil was one of the rare few collective to have managed to cross the Atlantic successfully , getting regular assignment from US publication like Time or Newsweek.

A collective is not a photo agency. A collective is made up of like minded photographers who decide to pool some of their resource needs in order to reduce cost and help each other. It is a tad socialist concept, thus very unpopular in the USA as it might potentially lead to a communist revolution .

The reason for L’oeil’s closure is now becoming a banality : Falling prices and  lesser assignments. A declining demand for original photography thanks to a marketplace that is more eager to save money than make money. A marketplace that has become a playground for CFO’s and their armies of blindly dedicated bean counters. Where photojournalism has been replaced by coupon journalism, where photo editors recruit amateurs to submit free images and where photographer hold high and proud checks with $2 and $3 license sales while screaming ” This is Better than nothing”. It is a market place where pundits will tell you that the road to posterity is paved with Twitts, blogs and Facebook updates. That the next Google search could yield thousands if not millions of dollars and that SEO is your key to success, not photography. It is a marketplace where trade publications turn a blind eye to monopolistic behaviors and where cheap has replace talent. It is a marketplace  that now sees editorial sales fall to 8 and 11 cents a piece.

L’Oeil Public’s situation is certainly not  a fluke and should not be dismissed as extremely far and extremely irrelevant. It is what is awaiting a lot of businesses and individuals in the year to come. Prosperity in not just around the corner and the “something is better than nothing” mentality will not work.

Posted in TIME, license, magazine, Newsweek, photojournalism, finance, news, france, editorial, getty | Print | No Comments »