Stock
As methods of supplying educational information to students change and schools adopt more and more electronic tools and techniques, photographers not only need to revise their image production strategies, but also to examine the way they will charge for their services in the future.
Jim Pickerell has a long history in stock photography as a stock shooter, an agency owner, and an industry analyst. In this wide-ranging interview he shares his experience and insight on the future of stock photography.
The opportunity to interact with editors from publishing companies, picture researchers, stock agents and photographers at the American Society of Picture Professionals' Reinvention Weekend in Boston provided a clearer picture of where the business of producing images for publication is headed.
For those who think that the use of photography in education will remain the same, here are some numbers from the U.S. Census Bureau.
Only a couple years ago, a researcher for a major book publisher said the company would never use microstock for a textbook, because of the "difficulty of securing rights." Though that was puzzling given typically solid microstock releases, I came away believing that maybe the textbook market was a last bastion of hope for photographers trying to license images at rights-managed prices. But things have changed.
In January we published an analysis
of the units licensed in 2009 by a group of iStockphoto’s most
successful contributors and asked the question “Has Microstock Reached
a Plateau?” The first quarter 2010 results seem to confirm this is the case. As a
baseline, on June 1, 2009 we did a count of the total number of images
licensed in May 2009 by a group of 196 out of the 250 top selling iStock
contributors. (Information on some of the top 250 was not available.)
There were 442,533 images licensed by this group in that month. Average monthly sales were up only 5% by the end of 2009, but they were down 1% to only 3.9% by the end of March 2010. See the full analysis and the implications for the future.
The Obama administration, through the offices of the U.S. Intellectual Property Enforcement Coordinator Victoria Espinel, has recently requested input from interested parties as to how piracy and copyright infringement is affecting the economy. The deadline for filing was March 24. Virtually all photographer trade associations and many other interested parties submitted reports and made recommendations for change.
As buyer budgetary pressures and competition continue to drive prices downward, production companies and solo practitioners are increasingly looking to maximize their earnings by cutting out the middleman.
There is a persistent idea among many image creators that a photographer somehow devalues his work if he ever licenses it for low prices. Yet recent years have shown that volume can be as significant a factor as price, and there are numerous other considerations.
If stock photography as a profession is going to survive, we are going to have to find a way to develop a two-tier pricing system. One tier would be for commercial use of images, and the other for personal and small use.
In the investment world it is a proven strategy to diversify your portfolio. The same is true as a professional photographer. This article explores different ways to diversify your income from printed coffee mugs to fine art prints to pay-for-click advertising...and the time to start is now!
Tom discusses his strategies for success in stock photography with advice for both new and established stock photographers. He discusses what to shoot, the importance of RPI, selecting agencies and even what gear he uses.
Rick Becker-Leckrone, CEO of Blend Images, is interviewed about his background, the success of Blend Images, and the state of the stock photo industry.
After publishing my article on a Two-Tier Pricing System I’ve had a
series of discussions with several photographers. There seems to be some
general misunderstanding as to why I think such a system is in the best
interest of all photographers regardless of whether they currently
license their work as rights-managed (RM), traditional royalty-free (RF)
or Microstock. Two-Tiers is not just another pricing model. The
whole purpose is so all images can be made available to all customers
at appropriate prices depending on how the customer intends to use the
image.
Anyone who has heard the term microstock has probably heard of Yuri Arcurs. He is recognized as the worlds most successful microstock photographer but is much more than just a photographer: he is a brilliant businessman adept at marketing, self-promotion and managing a large staff.
Chris Barton, managing director of Photographers Direct has written a humorous article on the
multiple use of microstock images that shows five young people—three women and two men—promoting the products and services of a dozen different companies, with copy that
would lead the reader to believe that these people were employees of all
these companies. Every rights-managed photographer will enjoy this
piece.
What an image is worth to a customer depends entirely on the customer's intended use. The size of the file delivered has very little to do with how an image might be used, or the value the customer will receive from using it. Granted, there are limits as to how a very small file can be used. But, there are many ways that a medium-size file can be used, with widely varying values. The biggest problem with royalty-free licensing, and particularly with microstock, is not that it prices certain uses very low, but that the system of pricing by file size has tried to ignore use in an effort to achieve simplicity.
One of the key things to understand about stock photography is why some customers are willing to pay more than others to use an image.
In response to "Use-Based Pricing: Corbis Moves in Right Direction," Jain Lemos said: "I am not convinced that the rights-managed model should disappear entirely, and promoting that idea too soon could have a negative impact that Corbis and others don't intend. Perhaps rights-managed and [traditional] royalty-free are going away on their own, but they have worked well for many years, and I'd hate to see the baby thrown out with the bath!"
Alamy salesfor the 2009 were $22,864,000, down 27% from 2008. Fourth quarter sales
were down less than 2% compared to the third quarter of 2009 and were
down 14% compared to the fourth quarter 2008. British pound and Euro
sales were up slightly compared to the third quarter of
2009, but U.S. dollar sales were down 12% compared to Q3 2009 and 22% compared to Q4 2008.
The stock photo industry needs a change in strategy so all images can
be made available for all uses at a reasonable price based on the value
the customer will receive from using the image. We need to get away
from the whole idea of rights-managed and royalty-free and recognize
that, in all cases, the price is based on use. Rights-managed licensing has always been much more about pricing
based on use rather than on managing rights. The vast majority of
rights-managed customers are not concerned with rights control or
exclusivity.
In response to "Stock Photo Lottery," Bill Bachmann said: "I don't know where you get the idea that 1% of images are sold are RM. I think you are pulling that figure out of a hat."
If you're a photographer shooting fashion, products or doing other commercial work for brochures or print ads you will often need access to good locations. Getting "access" to good locations generally requires considerable effort and often fee payments. This story provides some hints on how to solve the access problem.
Usage-based pricing is not going away; there will always be some demand for exclusive uses, for which customers will be willing to pay significant amounts of money. The question is how much and whether or not it is wise for most photographers to chase these customers.
A huge percentage of all professional imagery licensed is used in one way or another to promote a product or service. But advertisers have recognized that the old ways of promoting are no longer working. They are aggressively searching for new and better ways to reach consumers. Advertisers' decisions dramatically impact future demand for photography, as well as where and how it will be used.