Microstock
Shutterstock has introduced a new tool in the Shutterstock Darkroom
section of its site that is designed to help contributors better
understand Keyword Trends. The tool allows them to compare five keywords
at a time in order to determine the relative number of times a
particular keyword is used to request images on Shutterstock.
What happens when the iPad becomes the primary vehicle for delivering
educational information? Check out this story for some of the things we think will happen in the education business. Also see how what will happen to in the education business to content providers -- writers as well as photographers -- in the next ten years compares to how microstock has changed the stock photography business in the last decade.
Given Internet capabilities, society is rapidly moving away from
Business to Business (BtoB) transactions and more toward transaction
where small Businesses sell all types of things direct to Consumer
(BtoC). Some images will continue to be used in major ad campaigns and
there will be other sales of stock photography at traditional prices,
but the number of such requests will decline. Meanwhile image use by small businesses and individuals will increase dramatically. Photographers need to start focusing on how they can prepare themselves for the new market.
There are strong indications that iStock's introduction of higher priced brands has resulted in the company licensing fewer images. In addition many of its customers seem to be turning away from iStock and goint to other microstock sites to purchase the images they need. One non-exclusive photographer with many best selling recreation images on both iStock and Shutterstock reports that his images on Shutterstock are now outselling those on iStock by 3 to 1 while a year ago the reverse was true. Other photographers confirm this trend.
BigStock is introducing a new strategy for licensing microstock images. Their pay-as-you-go system allows customers to pay with a credit card for only those images they want to use immediately and not be forced to purchase packages of credits. There is no minimum purchase.
During the New Media Conference at the CEPIC Congress in Istanbul a panel of picture buyers offered their views on what they are looking for from stock photo collections. Lewis Blackwell moderated the discussion. Picture buyers on the panel included Peter Raffelt of Gruner +Jahr; Matt Burgess of Creature; Martin Casson of Dentsu in the UK; Alexander Karts of Die Bildbeschaffer and Paul Millen from an advertising agency in Istanbul. Two issues of particular interest to image creators and sellers revolved around the use of microstock by these large commercial customers and the lack of outstanding unique images in stock collections.
HP and LicenseStream have launched
Snap Stock Images, a service of Snapfish and a new microstock photo licensing service featuring affordable images from photo enthusiasts and professional photographers. Currently, Snapfish has more than 100 million members in 22 countries. Professional image buyers, including small and midsize business owners, graphic designers, advertisers and marketers, will be able to access hundreds of thousands of images that are available on the site at launch. Many of the images were shot by amateurs, but images from Veer and LicenseStream are also available.
At the annual CEPIC Congress, this year in Istanbul, where stock photo
agents and distributors from around the world meet, I asked attendees
the following and agreed to enter the names of those who answer into a
drawing for a chance to
WIN $100.00.
Describe a situation where a fee of $10.00, or less, is justified for the COMMERCIAL use of a single image?
Selling-Stock subscribers also have a chance to win. Send your answer in now!
Ingram Image has entered into a binding agreement to acquire the
goodwill and trading assets of Reflex Stock. Reflex offers a unique mix
of visual content, which currently comprises 10 million images.
Reflexstock.com offers traditional Premium quality Royalty Free and
Rights Managed content alongside Budget Royalty Free, MicroPrice Images
and a subscription service. Ingram also acquires Reflex’s successful
industry Design Blog.
In early March
Selling-Stock reported that many of iStockphoto’s most experienced videographers were very upset with the proposed royalty share for iStock new Vetta collection. At least 25 of the most productive contributors with a combined total of about 45,000 clips decided not to participate in Vetta. Most concluded they were likely to earn more if their clips were licensed at the lower Exclusive prices because they would continue to receive a higher royalty rate. It is also expected that clips available at the lower Exclusive prices will sell more frequently than those at the higher Vetta prices. Illustrators who produce Vector art were faced with the same problem.
In the microstock world, when establishing prices for online image use
distributors should consider developing ways to distinguish between
personal or social media uses and those for commercial purposes.
Customers who use images for commercial purposes, and earn revenue as a
result, should be charged more than those whose image use is for
personal, non-revenue generating purposes. On the print side of the
business microstock sellers have already solved this problem to a
degree. They charge more for larger file sizes that are commonly needed
for print uses, and even more when print uses are expected to exceed
500,000 copies.
I was recently asked by a RM photographer, “Can you provide some
insights into the kinds of volumes that are generated when images are
licensed at microstock prices?” This story provides some information and links as to how to learn more about microstock volumes.
Many photographers licensing images at RM and traditional RF prices
believe that it is impossible to have as profitable business licensing
images at Microstock prices. They argue that despite the fact that some
microstock photographers earn significant revenue due to sales volume
their expenses must be so high that there is very little profit for
their time invested. This story explores the validity of that theory.
A rights-managed photographer recently told me that travel photographers must continue to
market their work as rights-managed because there is not enough
customer demand on microstock sites for travel images to enable
photographers to cover their costs and make a profit. He acknowledged that people who shoot model released business and
lifestyle photographs might be able to earn enough to profit from
licensing their images as microstock, but argued that it won't work for
the travel photographer. I decided to search iStockphoto for some popular locations and see how
many times the top ten images from each of these locations had been
downloaded.
Cutcaster recently conducted a survey using their own database and Adbase’s email list of creatives in multiple industries in North America. The professional backgrounds of the recipients cover most industries. They received 344 responses almost all of which came from North America with the next largest groups being South America and the UK. See the preliminary results at
http://blog.cutcaster.com/2011/02/10/picture-buyer-stats-released-market-information-for-online-image-users/
One of the great benefits of the Microstock marketing strategy is that
distributors have always offered customers a variety of ways to organize
search returns. In particular, sort-by-downloads has been a very
popular option. A “Redeemed Credits” option would get more of the best selling images of
the higher priced brands near the top of the search return order. This
method of searching would allow customers to see all the various brands
in a single search and still see more of the expensive images in the
early pages. See explanation.
In January of 2011 Yuri Arcurs was interviewed by John Lund and gave the
following account of where his business is today. Yuri is the world’s
best selling microstock photographer, has a staff of more than 50 and
the overhead for his stock operation exceeds $200,000 a month.
iStockphoto has announced plans to introduce a new higher priced Vetta
collection of video clips. Video producers are rebelling over the
proposed royalty split for this higher priced product. Clips in this
collection will be handpicked for their art direction, conceptual
execution and rarity and will be made available at higher prices than
other exclusive content.
Getty’s move to sell some of its royalty-free images on both
www.gettyimages.com and www.istockphoto.com is presenting some problems
in pricing usages and is sure to drive more Getty Images customers to
iStockphoto.
iStockphoto has added a new collection of “editorial use only” stock
images to www.istockphoto.com. These images are intended for use by news
outlets, publishers, magazines, bloggers and presenters as a
descriptive visual reference to a product, place, event or concept.
The concept of royalty-free stock photography was invented in the early
1990s because many picture buyers felt that it was unfair for image
prices to be based on how the image would be used rather than their cost
to produce. The pay-based-on-use system (rights-managed wasn’t even a
term used at that time) was a particular problem for picture buyers
because they needed to track future use of any image they purchased to
make sure the use wasn’t exceeding the license. Customers wanted a way
to avoid this extra administrative hassle.
Photographers who license rights to their images based on how the images
will be used tend to be adamantly opposed to microstock. The principle
reason for such opposition is that microstock images are licensed for
use at very low prices. With microstock there are a few price variations
depending on how the images will be used, but they are minimal compared
to those used by rights-managed sellers. All other aspects of the
microstock business tend to get ignored. I want to examine some
of these other aspects of microstock licensing and point out how
traditional agency photographers might benefit if their agencies would
adopt some of them.
Pixmac has removed its exclusively restrictions for its contributors and
raised commission rates. Contributors will now receive 30% of the
revenue collected or at least $0.25 per download for the first $200.00
in earnings. Once their total earning exceed $200.00 they will receive
40%.
When the Huffington Post starts lampooning what they call “Ridiculous
Stock Photos” will art directors judge the concepts as something to
avoid in the future?
iStockphoto has introduced its new round of price increases for 2011.
For those in the macro world (RM and traditional RF) who like to argue
that it is impossible to make money selling images on a microstock site
it may be time to take another look at what iStock is doing.