All image sellers win with MRR. Possibly the biggest benefactor of such a pricing strategy is traditional RF (TRF).
Here are uses included in each category of the Modified Rights Ready (MRR) business model. Any use not specifically included in the first 15 definitions falls into the "Other" category and must be negotiated. In addition, uses in several different categories are not permitted unless each category is purchased, or they are all commercial uses and that category is purchased.
Here is a suggested strategy for MRR pricing. All the prices are for nonexclusive use of an image in a single project or campaign. Multiple uses of a picture for several different campaigns, or by different customers must be negotiated. Exclusive uses must be negotiated. Price is unrelated to the size used, the length of time used and the user's industry. The only factor affecting price is circulation, with the exception of cover uses that must be negotiated.
My proposed new pricing strategy can best be described as a Modified Rights Ready (MRR) model. It uses some of the basics of RR as designed by Getty Images, but overcomes many of the problems with Getty's model. In an effort to achieve maximum simplicity, Getty lumped different types of uses into a single category and ignored important categories at the low end. I have broadened the number of categories to 16.
Is it all about the customer? Customers will always want more for less, but at some point, there has to be enough revenue for the producer to justify continued production.
Buyers want a simple, easy-to-use pricing system that allows them to use any image they can find at a price they can afford. None of the existing pricing systems adequately addresses this issue.
Because value received should be the basis for pricing image use, just as it is for pricing uses in these other areas of commerce. When a customer asks why you charge them more than you're charging "X" to use a particular image, the answer is that in your judgment, the customer is receiving more economic benefit.
The explosion of growth in content means the average return per image (RPI) will fall. However, it is no less expensive to produce images than it used to be. In the last four years, Getty's gross revenue from still-image licensing has grown about 50%, but not nearly as fast as the number of images added to the collection. As a result, image suppliers must produce more images each year just to stay even.
Basing price on the size of a digital file is extremely unfair to the customer, as well as the seller. File size has almost no relationship to how an image will eventually be used, or the value the customer will receive from its usage.