Goldman Sacks 2007 Projections For Getty

Posted on 8/20/2008 by Jim Pickerell | Printable Version | Comments (0)

As part of the process of selling Getty Images Goldman Sachs was provided detailed information relative to Getty's operations and on November 28, 2007 they produced a report that projected revenue for 2008 and 2012. The following are those figures. Getty Images was later sold to Hellman & Friedman.

Getty Images Revenue and Estimates (in millions)      
  2007 2008 2012
Creative Stills $560.94 $461.00 $348.00
Editorial $138.34 $180.00 $289.00
iStockphoto $72.00 $122.00 $262.00
Footage & multimedia $42.88 $47.00 $83.00
Other $43.44 $77.00 $159.00
B2B music   $14.00 $46.00
       
Total $857.60 $901.00 $1,187.00


Note the decline in Creative Stills (RM and traditional RF) revenue in the next five years. In 2007, RM was $305.26 and RF was $255.68. RF will take the biggest hit in the next five years, but both will lose significant revenue if marketing strategies remain as is.



Bill Bachmann said, “I do not sell RF and won’t.” Licensing images as RM has worked very well for him. But dramatic changes in the market are developing. We’re going to see a steady decline in the use of RM images for big budget print projects, while photographers pump an increasing number of images into RM.

Tim McGuire points out are “plenty of new distribution outlets offering 50+% for RF licensing.” But unit sales through these outlets are so comparatively low that even with their higher percentages, they don’t produce the gross revenue for photographers that the lower percent operations do.



Traditional photographers don’t like to hear it, but the market is headed toward lower priced uses, not higher. Volume will be the critical issue, not price or percentage. Look at the anticipated iStockphoto and multimedia growth. Multimedia uses will be online video, not still images, and at very low prices. Much of the editorial growth will be online as well as for personal uses on digital devices. Photographers need to view these options as real markets.

To be successful in a changing marketplace, David Liddle, of U.S. Venture Partners, said, “To a large degree, it’s the willingness to move on and abandon something. It’s the ability to let something go and move on to the next big thing.”


Copyright © 2008 Jim Pickerell. 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

Jim Pickerell is founder of www.selling-stock.com, an online newsletter that publishes daily. He is also available for personal telephone consultations on pricing and other matters related to stock photography. He occasionally acts as an expert witness on matters related to stock photography. For his current curriculum vitae go to: http://www.jimpickerell.com/Curriculum-Vitae.aspx.  

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