iStockphoto to Diversify Pricing, Promote Exclusivity in 2010

Posted on 12/15/2009 by Julia Dudnik Stern | Printable Version | Comments (0)

Getty Images-owned iStockphoto has announced the changes it plans to make in the coming year. The company’s long-term shift toward exclusive content continues with new products and pricing adjustments, which include major increases. iStock is also changing credit pricing and contributor canister levels, which drive the commission structure.

From a broader industry perspective, the most significant change is in the continued segmentation of the overall image collection into a series of tiered offerings with varying prices. The main collection remains the home of non-exclusive content that mirrors other microstock sites; iStock is even reducing the prices of the largest files in this collection to make the offering more competitive. Yet all other prices are going up, and so is the number of exclusive products.

Until now, non-exclusive and exclusive images (with the exception of the recently launched Vetta Collection) were sold for the same file size-dependent prices that ranged from $1 to $28. Starting with 2010, non-exclusive images will cap out at $25, while images within the new iStock Exclusive Collection will be sold for $2 to $30.

iStock also plans to launch Exclusive Plus, an offering that falls somewhere between Exclusive and Vetta in both content and price. Vetta’s current pricing, which will remain the same in 2010, is in the $20 to $70 range.

The company is also making adjustments to 2010 credit pricing. For example, a 12-pack of credits is going up to $18.25 from the current $18, and 1,500 credits will cost $1,550—$50 more than now. In view of iStock’s total transaction volume, even seemingly small changes—such as this increase, which is roughly a third of a percentage point—can have large revenue implications.

And some of the price increases are not small at all. The change in exclusive image pricing is quite significant: smallest sizes are up by 100% (from $1 to $2); medium-size files are up by close to 70% (from $6 to $10).

The additional revenue that will result from such price increases means an increase in earnings for both iStock and its exclusive contributors. However, iStock will also earn more in 2010 by changing how long it takes each contributor to move up the commission-percentage ladder.

Moving up a canister level will now require twice the amount of downloads. For example, silver, which previously stood for 2,500–9,999 total downloads, is going up to 5,000–19,999. The top level, black diamond, is going up from 200,000 to 400,000 downloads. iStock chief operating officer Kelly Thompson said: “Given our current rate of growth, the current canister levels aren’t sustainable. In order to maintain the current system, we will be increasing the canister levels. It’s something we’ve avoided for a long time, but it’s a step we have to take.”


Copyright © 2009 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

Comments

Be the first to comment below.

Post Comment

You must log in 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