259
PRICING EDITORIAL WEB USES
October 22, 1999
As we have used the chart on page 220 of Negotiating Stock Photo Prices we have
come to the conclusion that while these prices are appropriate for advertising
and corporate uses a different structure is needed for editorial uses. As a
result we have established the following policies for pricing editorial uses
on the web.
Editorial - Web
The following schedules are aimed at pricing usages on sites whose major
purpose is to collect and disseminate information, not sell products and
services. If a site is filled with products for sale and lots of advertising which
is different from what appears in the print publication then you should use the
schedules for commercial and corporate uses that can be found on page 220 of the
current edition of Negotiating Stock Photo Prices. An example of such a site which
is more commercial than editorial, and where the commercial schedules should be
used, is Interactive Week whose web site is hosted on Ziff Davis's main site which
is filled with products for sale and lots of advertising which is different from
that in the magazine.
These decisions must be handled on a case by case basis.
BASE FEE **
|
$150
|
|
or 50% of the print use fee Whichever is higher***
|
** This is for first, non-exclusive use on the web. This fee covers only the
initial use period and does not include archiving. The initial use is for the life
of a single issue of the print publication, if there is a print publication. If
the print publication is a daily this fee covers one days use; a weekly the fee
covers one weeks use, etc.
If there is no corresponding print publication (MSNBC for example) the fee would
cover one cycle before stories are changed, or somehow archived. This will vary
from site to site and may need to be researched.
The seller can license simultaneous uses on other sites unless an "exclusive"
license is purchased. The exclusive license should be at least an additional 200%
add on to the base price, but it might be greater for particularly unique or
newsworthy images.
*** If the space rate for the print usage is $400 then the additional fee that
would be charged for the on-line use should be $200. All additional fees for
archive use should be calculated on the "Base Fee" number.
In no case should the "Base Fee" for on-line usage be less than $150.
LEAD PAGE OF SITE
|
Add 25% to 50% of Base Fee
|
This might also apply to lead sections. For example a football picture might not
be on the lead page of Foxsports.com, but it would be on the lead page of the NFL
section. In this case we would consider the picture on a "Lead Page"
(For certain unique or newsworthy images this Add-On percentage might be higher.)
SIZE OF USE
|
|
|
|
1/4 screen or smaller
|
Base Fee
|
|
between 1/4 and 1/2 screen
|
Add 30%
|
|
larger than 1/2 screen
|
Add 60%
|
This premium would also apply if it is possible to click on a smaller images and
see a larger version.
The archive figures come into to play for any usage beyond the "First Issue"
use. These figures should be added to the Base Fee price.
ARCHIVE
|
|
|
|
|
up to 6 months
|
Add 50%
|
($225)
|
|
6 mo. to 1 year
|
Add 100%
|
($300)
|
|
1 year to 5 years
|
Add 200%
|
($450)
|
|
5 years to 10 years
|
Add 250%
|
($525)
|
|
Forever
|
Add 300%
|
($600)
|
(While the buyer may want "forever" rights for the convenience of not having to go
back and delete material from the site, the vast majority of images will probably
never be referred to after a few years. However, there will be certain historic
exceptions i.e. Hindenberg crash, First step on the Moon, JFK assassination, etc.
Such uses should command much higher rates and be negotiated separately.)
(In all cases when licensing web uses, but particularly for archive uses, get the
specific web address for the image so it is possible to track the length of time
the image actually remains available.)
Encyclopedia or Catalog Uses
For uses of a single image the above price schedules should apply. However with
encyclopedia or catalog uses a volume sale is often possible. In these cases the
following discounts MAY be appropriate:
VOLUME DISCOUNTS
|
|
|
|
|
at least 3 but less than 6 images
|
$120 each
|
(80%)
|
|
at least 6 but less than 11 images
|
$100 each
|
(67%)
|
|
at least 11 but less than 21 images
|
$90 each
|
(60%)
|
|
at least 21 but less than 41 images
|
$80 each
|
(53%)
|
The percentage figures are the percentage of the "Base Price." If a higher base is
used then the discounts should be figured by percentage.
In offering discounts the uniqueness of the image needs to be considered.
Discounts may not always apply.
We believe that these discounts should only apply when the images are coming
from one photographer. Thus, if an agency sells 40 images from many different
photographers the images would not be offered at the 40 image discount price. If
10 of the images came from one photographer and no other photographer had more than
2 images in the package the ten images should be billed at $100 each and all the
rest of the images should be billed at the full "Base Fee" of $150 each.
In deciding whether or not discounts should apply it is important to consider the
subject and the availability of other options. If the catalog is a general
encyclopedia and the picture is of a family having a picnic there will be many
options available and the picture is likely to need frequent updating.
If it is an encyclopedia of dogs, there may be fewer options available to the
buyer. A good image could be used forever because a certain species of dog will
always look the same. Thus a different discount may be appropriate depending on
the length of rights the buyer wants to purchase.
If the picture is of an extinct or dying people group the image may have a long
useful life and never need to be changed. In this case discounts should not apply.
General Pricing Principles
It may be reasonable to price certain subject matter differently. Feature uses may
have a more long range potential than certain news uses, but news uses may receive
many more hits initially. Therefore, breaking news uses might command higher fees.
Pictures with long range feature value would achieve their value through the
archive multiples, not necessarily a high initial "Base Fee".
For example, a buyer might want to archive a feature image that was of interest to
only a small segment of the population, but might have long term interest. In such
a case the buyer might be reluctant to pay the standard base fee. It might be
justifiable to lower the initial Base Fee, but use the standard percentage
multiples to calculate the archive uses. This will result in a lower overall
fee, but much more than if the seller were to hold the line on the base price, and
not charge for the archiving.
We do not think it is wise to go below the $150 Base Fee rate if there is no added
Archive potential to the sale.
Internal Archiving
Some publications want to "Archive" your images for their own internal editing
purposes, but not make these archives available to the general public. These
publications agree to pay the photographer whenever the picture is used in a future
story.
Normally, no "Archiving Fee" would be charged for this type of archiving.
This is dangerous practice because there have been many past examples of
publications using such images and failing to notify or pay the photographer for
the use. If at all possible, avoid such agreements. Instead put the images into
a on-line archive like PictureQuest (or others that will be
developed by stock agencies), or your own URL. Require the publication
to search one of these sources where you retain control. Many publications
may insist that they be allowed to keep your images in their catalogs, or worst
yet, maintain such catalogs and not tell you.
The next best solution to this problem is to put two clauses in your contract with
the publication. The first requires the publication to pay for all uses within 30 days. The
second says that if the photographer discovers a use that was not paid for within
the prescribed time the photographer may bill, and the publication agrees to pay,
three times the normal usage fee.
If it is in a written contract the publication has an incentive to set up
management practices that encourages prompt payment for all
uses. Otherwise, the publications will only pay the normal fees when they get
caught -- and nothing otherwise.
Commercial and Advertising Web Uses
We want to point out that the web pricing schedule originally developed by Seth
Resnick, and which appears on page 220 of the current edition of Negotiating Stock
Photo Prices,
is still very appropriate for commercial and advertising uses on corporate web
sites. The numbers quoted above are not a replacement for that schedule, but a
supplement to it. Resnick's schedule is very useful for certain
types of uses.
It is important to distinguish between "corporate" and "editorial" uses. In some
cases the distinctions are blurred. In such cases the seller may want to develop a
price that fits somewhere between the figures on these two schedules.