228 RANDOM THOUGHTS 8
June 5, 1999
Annual Report Sales In The Future
For a view of the future in the Annual Report business take a look at the
MCI WorldCom 1998 printed Annual Report. There are no pictures.
The cover has a small text block that directs readers to their on-line annual
report and lists the following:
| Printing & Paper
$ - 794,000
| Photography & Illustration
| Creative Services
WE JUST SAVED
Visit Us Soon! Thanks for Browsing! www.wcom.com
Due to increased shareholders MCI/WorldCom mailed more than twice the
number of printed 1998 annual reports than they sent out a year ago when
the 1997 report was mailed. Nevertheless, they calculated they saved
at least $866,706 over what
it would have cost them to produce the same style of report in 1998 as
they did in 1997, and previous years.
The 1997 report had a glossy 16 page editorial section before the
financials. In 1998 that editorial section was dropped and they simply
wrapped a plain cover around the minimum financials required by the SEC.
Additional explanations about the company,
for those who are interested, can be found on the web site.
There are pictures on the web site. It is unclear whether the photographers
who produced those pictures received the same degree of compensation as would
normally come from an annual report shoot.
One Photographer's Success Story
Photographer Frank Borges Llosa just sold his company, NetFloppy.com of McLean,
VA to e-commerce site Xoom.com Inc. of San Francisco after only six months in
business. Frank and three other equity partners received $560,000 in cash and
15,060 shares of Xoom stock worth approximately $700,000. Llosa is 24 years
NetFloppy.com is a web-based storage system that replaces a floppy disc, and is
particularly useful for iMac users. Instead of using floppy's, users store
their personal data on the net and have access to it any time, from any
computer. The University of Virginia marketing major put a couple thousand
dollars of his own money into the company.
After graduating from the University of Virginia where he earned significant income
by selling over 2,000 prints of his fine art work to other students, LLosa assisted
photographer Richard Nowitz part time for about a year. Simultaneously he was
developing his own freelance photo business and did shoots in Tibet, Israel,
Greece and Mexico. He sold images in National Georgraphic World and Traveler as
well as other publications. While on a shoot covering the butterfly migration
in Mexico he injured his shoulder making it impossible to carry cameras.
Undaunted, he turned his attention to web design.
LLosa owns another company, not included in the NetFloppy deal, called
1StopStock and located at www.1stopstock.com .
This site allows users to enter
a single keyword and search multiple web sites simultaneously for photographs.
Currently you can search PhotoDisc, The Stock Market, Corbis, TSI, Photos To
Go, Index Stock, West Stock, Workbook, PictureQuest, Image Quest and Definive
Stock. He also operates a site at www.frankly.com which offers prints for
sale at $25 each.
LLosa has the serial entrepreneur bug and plans to launch a new company soon.
"I like this buy out idea," he said (referring to the NetFloppy deal, not
all-rights buyouts of photos). With the new company he'll likely be
using a good bit of other people's money rather than his own.
"I just had a beer with a venture capitalist and went through a laundry list of
ideas," LLosa continued.
New York Times Promotes Stealing Photos - But Not Their Copy
In their weekly "Circuits" section on developments in the computer
industry, the New York Times on Thursday, May 27, published a review of five
desktop scanners ranging in price from $149 to $99.
The Times pointed out that users can get better results by scanning a print
produced from 35mm film than from using most of the consumer level digital
They also published a three column photo showing movie and television producer
Dennis Sugasawara of Santa Clarita, CA scanning what was obviously a
professionally produced portrait of his new baby.
Upon seeing the article, the Professional Photographers of America, immediately
fired off a letter and press release condemning the article and accompanying
photograph and saying that the Times was encouraging "illegal behavior."
"We are absolutely appalled that they are encouraging their readers to break
the law," says PPA President Bill L. Bruton. "Copyright is something every
journalist learns about in school - it appears the people at the Times could
use a refresher course."
PPA noted that federal copyright law protects the work of writers, artists,
professional photographers and even publishing companies like the New York
Times from unauthorized copying of their work. With professionally created
images it is accepted legal practice that the copyright belongs to the
photographer, and any transfer of the copyright must be made in writing.
"Someone who purchases a professional photograph is in the same position as
someone who buys a book or a newspaper," says PPA Director of Membership J.
Alexander Hopper. "They own the physical book or newspaper, but they do not own
the copyright, and they certainly do not have the right to have additional
copies made or to scan and distribute it over the Internet."
Interestingly, the Times is very interested in protecting rights to the text
they produce. Currently, they are trying to prevent Amazon.com from
referring to the N.Y. Times bestseller list unless Amazon pays them for
Inside sources tell Selling Stock that the Tony Stone Images received a number
of angry complaints from art directors who had cut their fingers on the metal
edges of the Volume 11 catalog.
Volume 11 is a 5 3/4 x 7 loose leaf binder about two inches thick with aluminum
sides. Photographers have affectionately dubbed it the "tin can."