For much of the past decade, textbook publishers have licensed rights to print a minimum number of copies of the books they published and proceeded to greatly exceed the authorized press run, without informing the content creators. Only recently have photographers become aware of this problem, which we covered last month. Here is a summary of the settled and pending actions.
Getty photographer Carlos Sanchez Pereyra recently asked on Linkedin what others thought was the "best way to sell stock." There is no question that Getty Images makes more gross sales than any other brand, but it may not be the best place for most photographers.
Should a photographer license his work as royalty-free (RF) for a 20%
royalty or rights-managed (RM) for a 40% to 50% royalty? The answer
seems simple, but maybe not. In a previous article I pointed out that there is absolutely no justification for a
distributor paying only a royalty of only 20% when an images is
licensed as RF and 40% when it is licensed as RM. It doesn't cost the
distributor any more to license an image as RF than as RM. In fact, if
anything, because negotiating time is involved in making some RM sales
it may actually cost the distributor more to license rights to an RM
image than to an RF one. Thus, if we were basing the royalty share
solely on the relative contributions of the distributor and the creator
to the sale, the RF royalty should be higher, not lower, than the
royalty for RM.
In January2010, pacaSearch will roll out a major marketing campaign
to picture buyers to promote its new pacaSearch software. At a recent demonstration at PictureHouse in New
York, Lee Horton, Multimedia Editor of K12 Inc. said, “Learning about
the functionality and usefulness of [pacaSearch] put a big smile on my
face. As a photo editor and art buyer, I search multiple sites daily.
This tool puts more control in my hands. I can keep the results pages
in tabs with fewer keystrokes, page toggles and site crashes. The
relative percentages, predictive text and term definitions create a
tight, clean search environment. With the launch of pacaSearch, I can
successfully and accurately find imagery in less time, with less
hassle, while having more agency resources at my fingertips. Thank you,
PACA.”
According to Paul Melcher, Getty Images is now offering publishers "new low prices in exchange for being the sole provider." Assuming that is true, it could easily backfire on Getty, and may point to a need for photographers to revise their marketing strategies.
In looking ahead to 2010, photographers should focus on how they will adapt to the new realities of the photography business.
One of the leading thinkers in today's stock photo industry is Rick Becker-Leckrone, the chief executive officer, principle founder and chief architect of Blend Images, one of the world's more successful stock production companies. In April 2009, photographer John Lund conducted an in-depth interview with Becker-Leckrone.
The following are some principles that apply all types of stock photo sales. The base numbers on the pricing schedules on this site are average rates for one-time, non-exclusive use of a single image by the smallest of companies, and assuming that the image has no unique factors that would make it more valuable. These numbers are equal to U.S. dollars and are reasonable rates for commercial use of the average professionally produced stock image. Other currencies should adjust accordingly. Photographer should be aware of the existence of similar microstock images that might fulfill the customer's requirements if exclusivity is not an issue for the customer. In such cases the photographer may find it necessary to negotiate a lower fee.
ZenithOptimedia (Publicis) says that global ad spend for 2009 will be 10.2% lower than 2008, but that in 2010 it is expected to be up 0.9% compared to 2009. Group M (WPP) thinks 2009 spending will only be down about 6.6% from 2008 levels and expects 2010 to be 0.8% above 2009. There is no expectation that ad spending will get back to 2008 levels anytime soon.