Two critical things for those who want to sell their photographs are to understand the individuals and organizations that might want to buy these images and to remain aware of the changing trends taking place in each market segment.
Traditionally, there have been two large categories of still image uses: in some type of printed publication or for personal use. In the past decade, the Internet has become a third major image use medium. Given the unique characteristics of each of these market segments, they and their changing conditions should be discussed separately—starting with traditional print.
| An estimated two thirds to three quarters of all revenue generated from stock pictures (in the range $1 billion worldwide) comes from print image uses.
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Traditionally, the primary uses of still pictures were in printed products such as magazines, newspapers, books, brochures, direct mail promotions, catalogs and—to a much smaller degree—posters and product packages. They have been used for both editorial and advertising purposes. An estimated two thirds to three quarters of all revenue generated from stock pictures (in the range $1 billion worldwide) comes from print image uses. In addition, staff photographers and those working on assignment produce a significant number of the photographs used in print, but there are no statistics available to allow calculating a reasonable estimate of the total value of this work. (The advantages and disadvantages of staff employment and assignment work will be discussed later in the “Going Pro” series.)
Magazines and newspapers
The demand for pictures that will be used in magazines and newspapers is declining rapidly. The revenue generated by this segment of the market represents 15% to 20% of total revenue. In the newspaper business in particular, many images are produced by staff photographers. Many of the images used in magazines are produced by freelance photographers working on assignment.
| In one sense, when $25 billion is being spent for ad space there is still a need for a lot of advertising photos. But there is a lot less need than in 2005— and going downhill.
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Publications are getting thinner. If you doubt that, go to the library and compare almost any publication with a copy published five or ten years ago, and you’ll see how thin they are today in comparison. Many are merging or going out of business. The size of most publications is determined by the advertising they can sell. According to figures from the Newspaper Association of America, advertising revenue for newspapers has declined 48% from $47.4 billion in 2005 to $24.8 billion in 2009. In one sense, when $25 billion is being spent for ad space there is still a need for a lot of advertising photos. But there is a lot less need than in 2005— and going downhill.
| Many want to attribute these declines to the economy and hope there will be a reversal timed to economic recovery. Do not be deceived by that argument.
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The same trends are occurring in Europe and many other countries throughout the world. Fewer ads means fewer editorial pages, because most publications try to maintain a 50/50 advertising-to-editorial ratio in order to produce a profitable product, although some are moving to 60% advertising and 40% editorial to try to stay afloat, and there is even talk of one going to 30% editorial. Thus, smaller publications not only mean fewer pictures used in ads, but less space for editorial stories and pictures.
For more statistics, take a look at “Print Advertising and the Future of Stock Photography,” and for a revealing look at what Dirck Halstead, a photographer with more than 45 years of photojournalism experience and TIME magazine’s senior White House photographer for 29 of those years has to say about the “Death of Photojournalism.”
Many want to attribute these declines to the economy and hope there will be a reversal timed to economic recovery. Do not be deceived by that argument. In fact, the trend was in full swing long before the recession hit. It is much more the result of advertisers turning to the Internet than the recession, and they won’t be coming back.
There is some good news in that some suburban magazines and newspapers, and special interest publications, seem to be doing better than the national, major city or general interest publications. However, most of these publications do not pay very well.
Books
An estimated 20% of annual stock-image licensing revenue results from uses of images in books—mostly textbooks. The vast majority of the imagery that appears in books is stock, with few images produced by staff photographers or on assignment.
| School systems are rapidly moving away from purchasing textbooks and toward making much more extensive uses of the Internet, PowerPoint presentations and electronic whiteboards as primary teaching resources. This certainly means a decline in the use of imagery in books.
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Due to the cost of paper, printing, distribution and storage, the cost of new textbooks has become prohibitive for most school systems. Thus, they are rapidly moving away from purchasing as many textbooks as they have in the past and toward making much more extensive uses of the Internet, PowerPoint presentations and electronic whiteboards as primary teaching resources. The speed at which this change will occur is unknown, but it certainly means a decline in the use of imagery in books.
In addition, in the last few years publishing companies have demonstrated a trend to pay less for the images they do use and to dramatically increase the number of copies of books they print for little or no additional fee. For example, the standard price to use an image has been based on a 40,000-copy print run for decades. Now, the publishers want to pay no more than twice that amount to print 1 million books. I recommend a 5.25 times multiple for such a large print run, which is still a real deal for the publisher. But few image sellers are asking for, or getting, anywhere near that.
Some of the same images currently being used in books will probably be used in electronic educational presentations in the future. However, early indications are that a lot less will be paid to use an image in one of these electronic presentations than is now paid for use of an image in a book. “Declining Textbook Market For Photographers,” “Census Information Sheds Light on Education Image Use,” “Britannica Image Explorer” and “Subscriptions – Not All Equal” might provide additional insight.
Direct mail and catalogs
Probably 40% of all the money generated from the use of stock photos comes from brochures (either direct mail or to handout) and advertising catalogs. This business is declining for several reasons. The increasing cost of postage and printing costs has caused businesses to look for other ways to promote their products and services. Many organizations are using the Internet to a much greater extent, and there is every indication this trend will increase. Printing companies are merging and going out of business. The demand for use of images in these products will decline.
| When they use an image in an electronic product, customers are only willing to pay about one tenth or less of what they had been paying to license the same image for use in a printed product.
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The good news is that there will be a continued need for much of the same type of imagery in these electronic promotions and advertisements as was used in printed products. But when they use an image in an electronic product, customers are only willing to pay about one tenth or less of what they had been paying to license the same image for use in a printed product.
Figures that compare the average rate per million for a digital ad insertion to the rate per million for a number of print publications are very revealing. The cost of reaching one person with a print ad is 6 to 40 times higher than if the ad were placed online. (A later discussion will explore how customers can get away with paying so little. For now, accept this as fact.) So far, no one has come up with any recommendation that would reasonably change this pricing dynamic. And, given the dramatic increase in choices available to customers, there is every indication that the prices for electronic use are not likely to improve.
| According to May 2004 census figures (the latest available), the median annual earnings of salaried photographers were $26,080, and the middle 50% earned between $18,380 and $37,370. Freelance photographers were probably doing worse, and everyone is likely doing worse today.
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One obvious question is: “Were the customers being overcharged previously when images were used in print, since photographers are now willing to sell their images at one tenth of the previous price?” No. For the most part, the images were not overpriced. Given production costs and the number of images a photographer had to produce in order to have one that sells, the previous prices were reasonable. Only a few of the very top photographers had incomes that by any standard might be considered those of the rich. According to May 2004 census figures (the latest available), the median annual earnings of salaried photographers were $26,080, and the middle 50% earned between $18,380 and $37,370. Freelance photographers were probably doing worse, and everyone is likely doing worse today. Of course, there are a few exceptions; here are the results of a recent
Selling Stock survey.
In order sell images at the prices being paid now, many of the top photographers have dramatically cut production costs, resulting in images of lesser overall quality, but that is the only way they can justify continued production. Many have stopped producing and gone into other lines of work. Next, we’ll discuss the Internet and how and why it has changed things.