Digital Railroad Servers Headed to Auction

Posted on 11/12/2008 by Julia Dudnik Stern | Printable Version | Comments (2)

Diablo Management has notified all concerned that Newscom and another unnamed buyer have rescinded their interest in Digital Railroad. The management company expects that Digital Railroad’s main creditor will take possession of the physical servers that house photographer archives and software, wipe them clean and put them up for auction.

Some have expressed concern about the method of information deletion. Image files can be restored using commercially available software.

The latest Diablo memo of Nov. 10 apologizes to image owners. It states that Digital Railroad intended to preserve its customers' images for recovery but is unable to do this without additional funds.

The memo also reiterates Diablo’s intent to “work, with the assistance of photographer associations to have the publishers pay the photographers directly” any outstanding fees for images licensed through the Marketplace. The Stock Artists Alliance is in contact with Diablo and is pursuing such issues on behalf of its membership.

Photo District News has details on how some of the affected photographers have coped and which suppliers benefited by getting Digital Railroad’s main asset—its customers.

Copyright © 2008 Julia Dudnik Stern. 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


  • Betsy Reid Posted Nov 12, 2008
    A note of clarification: SAA is pursuing the issues with Diablo on behalf of all DRR archive owners.
    Betsy Reid
    SAA executive director

  • Douglas Peebles Posted Nov 12, 2008
    I for one would be interested to know where the 20 million in start up capital went. A stock photo business is not that expensive to run. According to a friend of mine in the web hosting business they probably had only about $50,000 worth of servers, maybe $100,000 total in hardware and software. Where did the other $19,900,000 go? How about a story on that?

Post Comment

Please log in or create an account to post comments.

Stay Connected

Sign up to receive email notification when new stories are posted.

Follow Us

Free Stuff

Stock Photo Pricing: The Future
In the last two years I have written a lot about stock photo pricing and its downward slide. If you have time over the holidays you may want to review some of these stories as you plan your strategy ...
Read More
Future Of Stock Photography
If you’re a photographer that counts on the licensing of stock images to provide a portion of your annual income the following are a few stories you should read. In the past decade stock photography ...
Read More
Blockchain Stories
The opening session at this year’s CEPIC Congress in Berlin on May 30, 2018 is entitled “Can Blockchain be applied to the Photo Industry?” For those who would like to know more about the existing blo...
Read More
2017 Stories Worth Reviewing
The following are links to some 2017 and early 2018 stories that might be worth reviewing as we move into the new year.
Read More
Stories Related To Stock Photo Pricing
The following are links to stories that deal with stock photo pricing trends. Probably the biggest problem the industry has faced in recent years has been the steady decline in prices for the use of ...
Read More
Stock Photo Prices: The Future
This story is FREE. Feel free to pass it along to anyone interested in licensing their work as stock photography. On October 23rd at the DMLA 2017 Conference in New York there will be a panel discuss...
Read More
Important Stock Photo Industry Issues
Here are links to recent stories that deal with three major issues for the stock photo industry – Revenue Growth Potential, Setting Bottom Line On Pricing and Future Production Sources.
Read More
Recent Stories – Summer 2016
If you’ve been shooting all summer and haven’t had time to keep up with your reading here are links to a few stories you might want to check out as we move into the fall. To begin, be sure to complet...
Read More
Corbis Acquisition by VCG/Getty Images
This story provides links to several stories that relate to the Visual China Group (VCG) acquisition of Corbis and the role Getty Images has been assigned in the transfer of Corbis assets to the Gett...
Read More
Finding The Right Image
Many think search will be solved with better Metadata. While metadata is important, there are limits to how far it can take the customer toward finding the right piece of content. This story provides...
Read More

More from Free Stuff