The Fire Hose

Posted on 4/4/2014 by Peter Krogh | Printable Version | Comments (0)

Peter Krogh has written a disturbing report about how the value of imagery is about to be slashed once again. It’s called The Fire Hose concept. Peter is also author of the DAM Book (digital asset management) and a group of publications on the use of Lightroom 5. Here is Peter’s report reprinted with permission.

The Fire Hose


Dateline SXSW, Austin, TX
- I’ve written over the last year about how Instagram is creating a commercial service to supply photos for editorial and marketing purposes. The legal foundation was laid in January 2013, the service was turned on as a trickle last fall, and now it’s starting to get traction.

At SXSW, I spoke with some people who are making use of these photo streams. This includes people on the client side who are building campaigns with these services, as well as companies that help clients make sense of the photos and other data.

They have a name for it. The Fire Hose.

The analogy is obvious on one level. There are so many images coming through these services, it’s like the difference between a drinking fountain and a fire hose. These companies are excited to create engagement with their audiences by mining the millions of photos, tweets, Facebook posts and more that make up the world of User Generated Content (UGC). UGC creates a new kind of media engagement.

And the Fire hose analogy is also useful in another way. In these arrangements, the company does not pay for the “water” (the photos), they pay for the access to the “pipe” (the API.) This allows the service to sell access to the material in a way that denies that the photos have any value. The value being charged for is the underlying access to the Fire hose and the connectivity. (See Getty)

Of course, this has profound implications for the independent creator. If you put your images on sites like Instagram that are part of the Fire hose, they may be republished widely with no money coming to you.  And use of UGC is creating a great deal of excitement for the client companies. It will take an ever larger share of the budget and attention of advertising, marketing and editorial teams.

Even though the use of the Fire hose does not replace the use of professional photography, it will certainly divert money away from it. I believe that it will take a while for companies to understand the best way to get a proper mix of UGC and PCC (Professionally Created Content, to coin a term.)

Still Lots Unsettled


I can also report that much of what I have previously identified as unsettled remains unsettled. This uncertainty is what is holding back the full blast of the hose. The unsettled issues are, in my view, primarily about the legalities of the terms of use (TOU) agreements.
    • Are the rights in these contracts really something that can be sublicensed?
    • Are the liability protections in the TOU going to hold up in court?
    • Does the user really forfeit the right to terminate the agreement?
    • Will there be a public relations nightmare in the early days that makes this a risky tool for marketing?
As we see companies pushing the envelope, we’ll start to find the legal and moral edges of what is considered acceptable use of the Fire hose. I expect that the boundaries that we settle on will give Facebook, Twitter and Google an extremely broad right to make money from the Fire hose.

If you are a professional creator, it would be smart to factor this into your business strategy and your long-term planning, carving out a viable value proposition in a world drowning in UGC.

For more from Peter check out his blog. For information about the DAM book, Lightroom 5 and his other publication see here.


Copyright © 2014 Peter Krogh. 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

Comments

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