Random Thoughts 8

Posted on 6/5/1999 by Jim Pickerell | Printable Version | Comments (0)




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   

- 46,800   

  Creative Services   



- 7,238   


- 1,317   


$ 866,706

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

the privilege.

Tin Can

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."

Copyright © 1999 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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