Random Thoughts 58

Posted on 1/9/2003 by Jim Pickerell | Printable Version | Comments (0)



January 9, 2003

Sales Up At WorkbookStock

While some stock sellers have been reporting relatively slow sales in the last few months
sales are booming at
workbookstock.com .

November was another record-setting month with a 23% increase over their previous best
month. They also made their highest license fee ever for a single image (over $39,000) and
their average license fee is at $1,067 per image. Gross license fees for the month were
triple what they were for the same period in 2001.

Buyers received Workbookstock's Book 3 image catalog the first week in January.

Image State 2002 Financial Results

Image State recently reported their results for the year ending 30 June 2002. CEO Michael
Cornish called it a "very challenging period" and reported a loss of 3.9 million pounds
(approximately $6.2 million) before interest, tax, depreciation, amortisation and goodwill
impairment and reorganization costs. This compared to a loss of 7.6 million pounds
(approximately $12.1 million) for the year ended 30 June 2001. Losses in the second half of
2002 were significantly less than the first half.

Cornish said, "Overall, image licensing sales remained flat year, on year reflecting the
difficult market conditions in the US and Europe. Market conditions in the US have been
harsher than the UK."
He attributed a significant part of the operational under performance to the general market
environment. In this difficult market the company focused on absorbing acquisitions made
over the previous 12 months, reducing costs and rationalizing operations in the face of the
continued advertising recession.

During the period from 1 July 2001 to 30 June 2002, turnover amounted to 7.0 million pounds
(approximately ($11.3 million) and this compared to a turnover of 3.2 million pounds ($5.1
million) in the period from 1 July 2000 to 30 June 2001. The gross margin in 2002 was
approximately 69 per cent. This means that 31% of net sales was owed to the creators for the
use of their content. However, the monies may not have been paid to the creators by the end
of the period. Part of this growth in turnover resulted from the fact that ImageState
acquired International Stock Photography of New York in October 2001.

About 51% of the turnover resulted from sales in the US and 49% from the Rest of the World.
In most of the ROW except the UK, ImageState's products are sold by agents. The actual
selling price by these agents is not reflected in this figure. Only the amount the agent
actually pays to ImageState is reflected in "turnover."

The Company has operating businesses based in New York and London employing a total of 79
staff -- 42 in London and 37 in New York. The Seattle office was closed in March 2002 in a
move to consolidate and all its operations were transferred to New York. The 42 people in
London include the UK domestic direct sales team as well as the international agent network

ImageState's still image library amounts to approximately 140,000 per-edited digital images
on-line as well as a substantial analogue collection of over 2 million images.

They reported that the Directors reviewed the levels of goodwill, related to the prior
acquisitions made by the Group and decided that it would be prudent to reduce the carrying
value of the goodwill to reflect a diminution in value due to current market conditions.
This resulted in a write off of goodwill of 14.1 million pounds (approximately $22.5

The Group loss before taxation was 22.1 million pounds ($35.3 million) and this includes the
14.1 million pounds of goodwill write down. This compares with a loss of 10.2 million pounds
($16.3 million) for the year ended 30 June 2001. The Group had a loss per share of 9.64
pense. Excluding the goodwill write down and amortisation, the Group loss before taxation
was 5.8 million pounds, equivalent to an adjusted loss per share of 2.5 pense.


A new web browser called fotoshowpro is being offered to help photographers produce an
online searchable database of their images. For a base fee of $2,000 you get a system that
offers keyword search, customizable graphic design, multiple light boxes, and sales and
traffic reports.

The SQL database back-end supports virtually unlimited image catalogs and runs on Unix,
Linux, Windows or Mac OSX client server technology. All user and administrative functions
are accessed through a standard web browser.

Additional features that can be added are an e-commerce engine with secure credit card
processing, and an area for portfolios.

For more information contact S4media at info@s4media.com or go to: www.s4media.com

Markets Drying Up

When a pro says that "the markets are drying up," it usually means that the markets have
moved in a new direction from the way he or she is doing business.

A Thought On Rules

The following is from a The Case Against Lawyers by Catherine Crier.

"The increasing number of rules make it harder and harder for anyone to know what is legal
and what isn't. Rules generally favor the strong and the dominant who have the resources to
analyze the rules and enforce them. The more rules we have the less fairness we have. The
less we focus on the concept of Love One Another."

God knew what he was doing when he only gave us 10 rules.

Copyright © 2003 Jim Pickerell. The above article may not be copied, reproduced, excerpted or distributed in any manner without written permission from the author. All requests should be submitted to Selling Stock at 10319 Westlake Drive, Suite 162, Bethesda, MD 20817, phone 301-251-0720, e-mail: wvz@fpcubgbf.pbz

Jim Pickerell is founder of www.selling-stock.com, an online newsletter that publishes daily. He is also available for personal telephone consultations on pricing and other matters related to stock photography. He occasionally acts as an expert witness on matters related to stock photography. For his current curriculum vitae go to: http://www.jimpickerell.com/Curriculum-Vitae.aspx.  


Be the first to comment below.

Post Comment

You must log in to post comments.

Stay Connected

Sign up to receive our FREE weekly email listing new stories posted.

Follow Us

Free Stuff

Recent Stories – Summer 2016
If you’ve been shooting all summer and haven’t had time to keep up with your reading here are links to a few stories you might want to check out as we move into the fall. To begin, be sure to complet...
Read More
Corbis Acquisition by VCG/Getty Images
This story provides links to several stories that relate to the Visual China Group (VCG) acquisition of Corbis and the role Getty Images has been assigned in the transfer of Corbis assets to the Gett...
Read More
Finding The Right Image
Many think search will be solved with better Metadata. While metadata is important, there are limits to how far it can take the customer toward finding the right piece of content. This story provides...
Read More
Where Is The Stock Photo Industry Headed?
For new readers, or those who may have missed some of what I have written over the last few months, the following are a list of stories worth looking at to get a sense of where the industry is headed.
Read More
Photography As A Career
It’s that time of year when high school seniors are waiting for college acceptance letters and thinking about future careers. If you know someone who is thinking about photography as a career you mig...
Read More
2014 Stories You May Have Missed
For many the end of the year is a time to review past experiences and consider whether it makes sense to chart a new course in the year ahead. Stock photography has changed dramatically for professio...
Read More
More Stories In 2014 You May Have Missed
Every so often I put together a list of the most important stories we’ve published in the recent past. If you are engaged in the business of stock photography the links below are to stories that we’v...
Read More
Getty: A Three Month Review
In all the excitement about 35 million FREE images it is worth looking back at some of things that have been happening at Getty Images in the last three months. After watching revenue decline for the...
Read More
State Of Stock Photo Industry: 2013
If you’re looking for an overview of the state of the stock photo industry as of October 2013 the stories listed below are a good place to start. Regular readers of Selling-Stock will have seen all t...
Read More
Education Market Shifts To Digital
If supplying pictures for educational use is a significant part of your business plan you need to be aware of how the market is trending toward digital delivery and how that is likely to affect the p...
Read More

More from Free Stuff