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VIEW FROM AUSTRALIA
November 8, 2000
At the PACA International Conference in New York Colin Burke of Stock Photos agency in
Australia gave the following view of the south-west Pacific market for stock
photography, and challenge to the stock agents in attendance. Representatives from
more than 221 agencies from 36 countries were in attendance at this conference. This
annual event has become the premier place for stock agents to meet and network with one
another.
by: Colin Burke
As far as the stock industry is concerned, the south-west Pacific region essentially
means Australia and New Zealand. For those of you who do not know this part of the world
and did not watch the recent Olympic Games, if I was to drill a hole from this podium
through the core of the earth, it would come out about two blocks from my office in
Melbourne. We are about as far away from New York as one could possibly be.
Both countries have small populations. New Zealand with 3.5 million people while
Australia has 18.5 million. Both have mature markets. New Zealand has principally two
major stock agencies while Australia has six representing overseas stock agencies as
well as local photographers. There are very small minor agencies directed towards
niche markets such as indigenous nature.
Our market is small, but a weird one, probably because it is inhabited by weird people.
Rights controlled stock and royalty free compete for the clients' dollar. This has
resulted in a segmented market for images. We no longer deal with some small designers
who have mostly switched to royalty free. Australians cannot resist the chance of a
perceived bargain. At the same time major corporate advertisers are buying more rights
controlled images and indeed are now purchasing exclusive rights, something that never
happened before the advent of royalty free.
The New Zealand economy has encountered some difficulty with the last quarter being one
of negative growth. The fundamentals of the Australian economy are sound with growth
rates of greater than 3% being experienced consistently since 1993. Since July the
general consensus suggests sales have been disappointing with the advertising industry.
This is certainly my finding. There are three possible explanations for this.
Since July 1st Australia became the next victim to impose a GST or VAT (value added
tax). I now understand why it is so detested around the world. The GST was introduced
by the government as an election pledge some 18 months ago. Many business people, to
put it mildly, are experiencing a degree of difficulty both in the implementation of
the GST and the amount of time devoted to bookkeeping and adapting to the new role of
tax collector. It is truly amazing that since the tax was introduced I have not found
one person who voted for the current government.
Secondly the Olympic Games and what a party it was. Many businesses in Sydney
including advertising agencies simply closed down for the two weeks duration. We are
not known as the land of the long weekend for nothing. Many companies redirected
advertising budgets to hosting hospitality events during that period. Others simply
believed that it was not worth advertising given the almost religious focus on sport.
Retailers battened down the hatches in anticipation of record low sales with the
exception of those selling large screen televisions.
The third negatively impacting variable is the ever appreciating U.S. dollar. In the
last five months our currency has depreciated some 20% to 25%. This was driven home to
me in a very realistic way when my travel agent presented me with the invoice for
traveling to and staying in New York. I would like to take the opportunity, and I am
sure some of you who have travelled here from overseas would like to join me in
thanking the boys down on Wall Street for that little effort. I am gratified to see
they are gainfully employed in obviously rewarding careers causing grief and mayhem in
the economies of smaller countries. Many importers are not advertising their products
due to difficulties in pricing and seeking alternative goods from countries with non
U.S. dollar prices. Advertising budgets are being squeezed as importers attempt to
recover their margins. This distortion in the currency exchange rate has been sudden,
extensive and the negative affects are starting to be felt.
The world around us is changing and sometimes in bizarre and amusing ways. Recently a
fax crossed my desk. Buried in the text was the term "digital fulfillment." I found
this an intriguing term. I may be wrong here but I thought fulfillment best suited the
context of an emotional high, an uplifting of the psyche, a spiritual enrichment if you
like. How a computer file could achieve the same end is a little bewildering. One
could almost be forgiven in thinking a computer manual has somehow been crossed with
the Kamasutra. It certainly does put a whole new slant on that old English nursery
rhyme, little Jack Horner who sat in the corner and where he stuck his thumb. Could we
relegate that term to the lexiconic waste bin.
Like most of you we also represent photographers in our region. Lately many have
voiced their concerns to me in regard to the state of the stock industry. In my
experience I am aware that at times photographers have been known to be a tad paranoid
about any and every issue. Perhaps this is symptomatic of creative people who work in
independent isolation. But in recent times we have seen the emergence of new
developments such as globalization, acquisition, corporatization, digitization and
consolidation.
Indeed we are witnessing today the convergence of all these trends as the stock
industry undergoes a maturation process -- indeed a metamorphosis. What sort of beast
will arise from this industrial pupa? Personally I hope it is a butterfly and not a
moth but only time will tell. Under these circumstances who could not blame
photographers for being so rightly concerned. Would any of us react any differently if
we were to trade places.
Perhaps, if this were so, the voices of concern would be louder than they are now.
There are people, namely Richard Steedman from The Stock Market and Jim Pickerell who
have championed the cause of photographers over the years and their comments are a
matter of public record. Their understanding and appreciation of photographers may be
an outcome of having been professional photographers, and thus gaining a keen insight
into the thoughts of their colleagues. I am sure there are others, both individuals
and agencies who also are sensitive and responsive to the needs of photographers. I
apologize for overlooking you, but Australia is a long way away.
The stock industry is a very unique one since stock agencies do not, in the majority of
cases, own the images we sell. We as stock agents market the work of photographers,
our creative partners, who entrust us with their images to edit, label, market and
advertise -- and to obtain the best price in the marketplace. It is a fairly simple
concept. How often is this concept compromised with the headlong rush to gain sales at
any price? In today's climate of mass marketing, web site dominated global push for
growth, are we not in danger of ostracizing our collective responsibility to the very
people we purport to represent? Yes we do have to market hard and to utilize the
latest advances in telecommunications and technology to reach our clients. Price is
not the only variable in competition.
The emerging stock industry will confront photographers with many challenges and
decision as the past is swept away. As the number of stock agencies decreases so will
the number of displaced and unrepresented photographers. Old relationships between
agencies and photographers will cease but new opportunities will arise. This may be a
deeply worrying time for photographers as they confront the future. Indeed it is for
all of us. Any industry that undergoes a maturation process will experience profound
change. Change can be a painful process especially when you have little or no control
over its extent or speed. It is our collective responsibility to listen to our
photographers, to hear their concerns, to assist them to manage this process of change
and secure for them a fair reward for their creativity.
Photographers are the most important elements of our businesses. Sometimes we need to
stop and consider this for without them we would not be here today. This is the
message I bring you from my photographers and if your experiences are similar, I ask
that you address their concerns with the seriousness and sensitivity the situation
demands.