has reported Q4 2016 revenue of $130.2 million and a total of $494.3 million in revenue for all of 2016. The full year revenue was up about 16% from $425.1 million in 2015. There were a total of 167.9 million downloads for the year up from 147.2 million in 2015. While revenue grew 16% the collection size grew 63% to 116.2 million up from 71.4 million at the end of 2015.
A top 2017 priority for the major image distributors should be to reverse existing pricing trends and find a way to begin to increase usage fees to some extent. Usage fees have been steadily declining for a number of years. The industry must find a way to turn the corner.
Based on the number of downloads Shutterstock had in the first three quarters
it looks like they will report about 167,000,000 total downloads for 2016 when they report their full year numbers on February 27, 2017. Last year they reported
147,200,000 downloads for 2015.
Twenty-five to 30 years ago there was a large demand for stock images relative to supply. Prices to use a stock image -- while reasonable when compared to what it cost to hire a photographer for an assignment -- were much higher than they are today. It was possible for a professional photographer to produce a lot of images that no one wanted to buy, and still earn a decent living from the few that did sell.
Recently, I was asked my opinion of what Shutterstock
could do to grow revenue? The questioner had come to the conclusion that there will be very little growth in coming years in the number of stock photo customer or the quantity of still images or illustration that each will use. He also feels that iStock
and even Getty Images
have priced their products very competitively with Shutterstock making it difficult for Shutterstock to simply raise prices.
has announced that it has expanded its milestone multi-year deal with The Associated Press
(AP). Beginning this week, Shutterstock will distribute AP’s daily global photo output for license to customers based in the United Kingdom. Shutterstock’s enterprise customers in the United Kingdom will have access to over 30 million photos from AP Images.
iStock single image downloads appear to have continued to decline in the last half of 2016. Unfortunately, five of the 430 contributors that we tracked in the past have now disappeared. In the last report these contributors represented 544,000 total career downloads. It is unclear whether they have withdrawn their collections, or repurposed them under another brand that I am no longer able to track.
How many customers make maximum use of their subscriptions? Most businesses that offer subscriptions offer their customers much more than they can ever use for one fixed price. Some customers like this because they know exactly what their monthly costs will be regardless of how much they use the service.
Shutterstock supplies very little information about their Enterprise customers and how Enterprise sales work. Yet it is an extremely important segment of their business and critical to understanding the company’s potential for future growth. At the end of Q3 2016 Shutterstock had 35,000 Enterprise customers up from 24,000 at the beginning of the year, or about a 46% increase in 9 months. How much of that 46% is real growth?
I was asked recently if I am optimistic that Shutterstock will maintain its momentum in 2017? The short answer is YES, I believe Shuttrstock’s 2017 growth will continue on the same track as it has in the last two years. In 2014 revenue growth was 39%
. In 2015 it was 30%
and in 2016 it is expected to be around 18%
. I expect the company will continue to maintain its DOWNWARD
has signed an exclusive deal to distribute SilverHub Media’s
growing collection of imagery worldwide.
has gone public with a promotion to the 95% of design professionals that use stock photography. For the first time, buyers looking for a comprehensive all-in-one search tool can review and license photography from all industry sources – and get no duplicates.
, with over 50 million stock images, and more than 16 million users has added 10,000 new images to its now 20,000 image library of free images available at www.dreamstime.com/free-photos
.?? Dreamstime also uses artificial intelligence-driven data from its companion site Stockfreeimages.com to dynamically adjust recommended image content based on user preferences
With Getty’s announcement in late October of the Unification Timeline
that is due to take effect January 3, 2017 most iStock contributors have focused on the fact that the minimum guaranteed royalty for a subscription download would be $0.02.
, Inc. has announced that its vast collection of 100 million high-quality photos and illustrations is now accessible within Adobe Photoshop® software through its new custom built plugin. With more than 100,000 new images added every day, the Shutterstock plugin boasts the largest collection of photos and illustrations that can be licensed directly within the Creative Cloud desktop application.
, Inc. has acquired of over 700,000 images from two prominent photo collections: The Art Archive and The Kobal Collection. Both collections, previously held by UK-based The Picture Desk, are now available to Shutterstock Premier customers globally.
Yesterday, I talked about why the business of licensing rights to stock photos - as currently structured - is Designed To Fail
unless some major changes are made. Two of the changes needed are: (1)
make finding the right image for a project much easier for the buyer, and (2)
improving supplier efficiency.
If you’re curious as to why Shutterstock’s stock price keeps rising while from the perspective of many in in our industry Shutterstock’s long term growth prospects don’t appear to be that favorable, David Trainer offers some interesting insights. See here
. Trainer is CEO of New Constructs (www.newconstructs.com
), an independent research firm that leverages proprietary technology to find key insights from the Financial Footnotes of 10Ks and 10Qs. After studying his analysis here are a few of my thoughts.
Shutterstock has launched a new keyword suggestion tool for iPhone that leverages a combination of metadata (man) and pixel data (machine) to suggest more relevant and accurate keywords for images that are uploaded in the Shutterstock contributor app
. has announced an API integration with Google. The image licensing deal provides Google’s digital and mobile display advertising products, including Adsense, Adwords, and Admob, with access to Shutterstock’s collection of more than 90 million images for license.
. has made its visual search features, first introduced for desktop use in March
available for mobile use. Reverse Image Search for mobile invites users to capture the world around them on their mobile phones, and then upload them via the Shutterstock app
to search Shutterstock’s collection of over 80 million images for similar content and style.
Shutterstock has notificed its Offset contributors that it has decided to make Offset content available to its Enterprise clients (over 24,000 of them) at a price point between $50 and $100. The current Offset price for a 72dpi web use image is $250.
Most photographers use two different figures to track revenue trends – revenue Per-Image-Licensed
and revenue Per-Image-In-Collection
. It’s easy for a photographer to figure his own per-image-licensed figure, but it is very difficult to determine how that might stack up with all photographers because the specifics of the number of images are usually not available even when you know (or have some idea of) the gross revenue collected during the period.
Microsoft has teamed up with Shutterstock
to add integration within PowerPoint in order to offer access to the vast collection of images for use in presentations.
has reported Q1 2016 revenue of $116.7 million up $19.1 million compared to Q1 2015. The growth is due mainly to new customers and increased activity by enterprise clients. Royalties paid to contributors during the quarter were about 29% of total revenue, or approximately $33.8 million. Currently, there are over 100,000 contributors meaning that the average contributor earned $338 during the quarter.