Average Prices Down At Getty

Posted on 2/6/2008 by Jim Pickerell | Printable Version | Comments (1)

In the quarterly conference call to investors Getty Images CEO Jonathan Klein provided three reasons for why average prices were down about 10% for Q4 and the full year. These included:

1. A decline in the number of higher-priced uses relative to lower priced ones. This resulted in a lower average when total revenue is divided by the number of images licensed.

2. A significant increase in volumes of RM and RR images licensed for editorial usages. Since editorial uses are priced lower than commercial, advertising, brochure and other marketing collateral this results in a reduction of the average price.

3. A significant incremental volume of sales of the new $49 Web resolution product, which impacts the overall average price per image.

Klein says except for the $49 product, there were no general price reductions or pressures from customers to reduce prices.

Copyright © 2008 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 301-461-7627, 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.  


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