Shutterstock says they are “testing” new subscription options that allow customers to download either 10 or 50 images per month. The prices for these packages are $29 and $99 respectively on an annual purchase plan. This seems to be a reaction to the iStock and Adobestock subscription offerings (see chart below) that have been in place for some time.
| Annual Plan |
|
|
|
|
|
|
| Per Month |
iStock |
iStock |
|
|
|
|
| |
Essentials |
Signature |
Shutterstock |
Adobe Stock |
Thinkstock |
|
| 10 images |
|
|
$29 |
$29.99 |
|
|
| 25 images |
|
|
|
|
|
|
| 40 images |
|
|
|
$79.99 |
|
|
| 50 images |
$90 |
$199 |
$99 |
|
$139 |
|
| 100 images |
$129 |
$259 |
|
|
|
|
| 250 images |
|
|
|
|
|
|
| 350 images |
|
|
$169 |
$169.99 |
|
|
| 750 images |
$166.58 |
$333.25 |
$199 |
$199.99 |
$208 |
25 per day |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Monthly |
iStock |
iStock |
|
|
|
|
| |
Essentials |
Signature |
Shutterstock |
Adobe Stock |
Thinkstock |
|
| 10 images |
$40 |
$99 |
$49 |
|
|
|
| 25 images |
$65 |
$149 |
|
|
|
|
| 40 images |
|
|
|
|
|
|
| 50 images |
$99 |
$229 |
$129 |
|
|
|
| 100 images |
$149 |
$299 |
|
|
|
|
| 250 images |
$199 |
$399 |
|
|
|
|
| 350 images |
|
|
$199 |
|
|
|
| 750 images |
|
|
$249 |
|
$299 |
25 pre day |
| |
|
|
|
|
|
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| |
|
|
Packs |
|
|
|
| 2 images |
|
|
$29 |
|
|
|
| 5 images |
|
|
$49 |
|
$49 |
|
| 25 images |
|
|
$229 |
|
$229 |
|
| 100 images |
|
|
|
|
$799 |
|
| 250 images |
|
|
|
|
$1,499 |
|
* Thinkstock 750 images prices allow 25 download per day.
It seems clear that some customers are saying to Shutterstock, “We don’t need anywhere near the number of images we are allowed to download in the larger subscription offerings. Can’t you give us subscriptions for fewer images at lower prices?”
It is unclear how many subscription downloads Shutterstock had in 2016, but based on
2015 estimates Shutterstock customers downloaded less than 25% of the images they were allowed. If you’re only going to use 50 images or less a month why pay for the right to download 350? That could save customers who have been paying $2,028 for an annual subscription $840 a year.
One suspects that after controlling the low priced market for many years Shutterstock is starting to see some push back from their faithful customers who are finding the iStock and Adobestock offerings more attractive.
Royaltes for the 10 and 50 image subscriptions will be determined by per-image price of each subscription and the
individual’s earning tier (See chart.)
| Subscription |
Pay Annually |
|
|
|
| |
Images |
|
|
|
| Earning Tier |
Per Month |
Price |
1 Item |
Royalty |
| 30% |
10 images |
$29 |
$2.90 |
$0.87 |
| 30% |
50 images |
$99 |
$1.98 |
$0.59 |
| |
|
|
|
|
| 28% |
10 images |
$29 |
$2.90 |
$0.81 |
| 28% |
50 images |
$99 |
$1.98 |
$0.55 |
| |
|
|
|
|
| 25% |
10 images |
$29 |
$2.90 |
$0.73 |
| 25% |
50 images |
$99 |
$1.98 |
$0.50 |
| |
|
|
|
|
| 20% |
10 images |
$29 |
$2.90 |
$0.58 |
| 20% |
50 images |
$99 |
$1.98 |
$0.40 |
| |
|
|
|
|
| |
|
|
|
|
| Subscription |
Monthly |
|
|
|
| Earning Tier |
Images |
Price |
1 Item |
Royalty |
| 30% |
10 images |
$49 |
$4.90 |
$1.47 |
| 30% |
50 images |
$129 |
$2.58 |
$0.77 |
| |
|
|
|
|
| 28% |
10 images |
$49 |
$4.90 |
$1.37 |
| 28% |
50 images |
$129 |
$2.58 |
$0.72 |
| |
|
|
|
|
| 25% |
10 images |
$49 |
$4.90 |
$1.23 |
| 25% |
50 images |
$129 |
$2.58 |
$0.65 |
| |
|
|
|
|
| 20% |
10 images |
$49 |
$4.90 |
$0.98 |
| 20% |
50 images |
$129 |
$2.58 |
$0.52 |
The assumption is that customers will actually download all the images allowed. In many cases customers will actually download less and Shutterstock will reap that extra benefit. In effect, in most cases, contributors will be receiving a lesser percentage of total revenue collected than their earnings tier specifies.
Contributors will continue to receive the same royalties as they have in the past for downloads from the 350 or 750 image subscriptions.
Single Image Revenue
It seems likely that single image revenue will decline as a result of these new subscription offerings. In the past we have estimated that 25% of Shutterstock’s revenue comes from single image downloads. Based on 2016 revenue that would be about $125 million.
One has to wonder why a customer would pay $49 for a 5 image pack when they could get a 10 image subscription for one month for $49. They could also get 10 images a month for $29 but they would have to make a 12 month commitment for a total of $348. However, that would give them the right to download 120 images over the year. That number of images may satisfy the needs of many single image users. Certainly, it would seem that the number of people who purchase 25 image packs for $229 will decline.
Shutterstock may grow their subscription revenue, but at what expense to single image downloads?
iStock Subscription Royalties
Getty’s approach to restructuring iStock subscription royalties as part of its “Unification” process is also worth considering. Getty is switching from paying a fixed price for each iStock subscription download to valuing each download based on what the customer actually uses. They divide the number of actual uses in a month into the total the customer paid for the subscription. This could result in higher royalties to contributors when customers don’t use all the images they are allowed. However, it also makes it impossible to determine the value of each image until each subscription month expires.