The E-Commerce of Licensing Stock Photography Online

Com 538Com 538

Don WilsonDon Wilson

9 December 20039 December 2003

Stock photography Photography that is

accessed over the Web, then licensed for specific uses in advertising, marketing, corporate communications, publishing and design.

Stock Photography Business Model

photographers stock agenciescorporate

consumers

images images

$$

Purpose of study

Answer the question: Answer the question: Is there a viable e-commerce model for an individual to distribute the content they create (digital photographs) to corporate consumers?

Possible Stock Photography Business Model

photographerscorporate

consumers

images

$

Possible Stock Photography Business Model

Overview

A brief history of stock photographyA brief history of stock photography The transition from analog to digitalThe transition from analog to digital The rapid adoption of e-commerceThe rapid adoption of e-commerce

The stock photography industry todayThe stock photography industry today The future of online stock photographyThe future of online stock photography What does it all mean?What does it all mean?

The early days

Since the1840s existing photography has Since the1840s existing photography has been sold commercially.been sold commercially. Stereoviews marketed through cataloguesStereoviews marketed through catalogues Cityscapes of Paris sold to paintersCityscapes of Paris sold to painters

In the 1930s and 1940s corporations sold In the 1930s and 1940s corporations sold their public relations and marketing photos.their public relations and marketing photos.

Otto Bettmann fled Germany with two trunk loads Otto Bettmann fled Germany with two trunk loads of prints in 1935, he later founded the Bettmann of prints in 1935, he later founded the Bettmann Archieve.Archieve.

1970 – 1990

Advertising discovered stock and vice versaAdvertising discovered stock and vice versa Business model shifted from out-takes to concept-Business model shifted from out-takes to concept-

based, generic images that could be resold many timesbased, generic images that could be resold many times Business was goodBusiness was good

Commercial creatives take control Definition: Definition: commercial users of

photography (art directors, designers, picture editors) who license images for use in commerce, for profit. By the early 1980s defined and controlled

most of the content of popular advertising and corporate culture

They still do

Stock photography goes digital

1993 1993 TimeTime and and Sport Illustrated Sport Illustrated started started downloading news photosdownloading news photos

19951995 Corbis and Getty began acquiring Corbis and Getty began acquiring stock agencies and picture collectionsstock agencies and picture collections

2001 the business model is “everything 2001 the business model is “everything online”online”

Digital stock in terms of diffusion theory

Digital stock enabled Digital stock enabled by rapid adoption of by rapid adoption of digital technologydigital technology

Reciprocal Reciprocal interdependence interdependence (Rogers, 2003)(Rogers, 2003)

Rate of adoption curve Rate of adoption curve similar to that of similar to that of InternetInternet

E-commerce in terms of brakes and accelerators theory Accelerators: images Accelerators: images

are digital and image are digital and image culture is tech savvyculture is tech savvy

Brakes: complex Brakes: complex negotiations, negotiations, expensive technology, expensive technology, proprietary imageryproprietary imagery

Result: technology Result: technology overcomes brakesovercomes brakes

The present …

Corbis and Getty control 90% of the marketCorbis and Getty control 90% of the market Corbis has 70 million images, about 1.5% Corbis has 70 million images, about 1.5%

are online – Getty has roughly the sameare online – Getty has roughly the same Getty’s sales for 2003 will be about $.5 Getty’s sales for 2003 will be about $.5

billion – more that 90% are e-commercebillion – more that 90% are e-commerce October 2003, Getty generates 5 billion October 2003, Getty generates 5 billion

thumbnails per monththumbnails per month

The future …

Technology will continue to advance Technology will continue to advance the the e-commerce of stock photographye-commerce of stock photography Semantic WebSemantic Web SimSearchSimSearch IsilonIsilon

The market will demand The market will demand greater selection of greater selection of imageryimagery

Commercial creatives Commercial creatives will remain the “cultural will remain the “cultural mediators” (Frosh, mediators” (Frosh, 2001)2001)

TheThe “Wal Mart” model of “Wal Mart” model of e-commerce will continue e-commerce will continue

Corporations may begin creating their own stock Corporations may begin creating their own stock collectionscollections Good for photographersGood for photographers Bad for agenciesBad for agencies

What does it all mean?

And what is the answer to the question: And what is the answer to the question: Is there a viable e-commerce model for an individual to distribute the content they create (digital photographs) to corporate consumers? Probably not – not in the immediate

future

DW’s rule:

Be prepared to adopt (spend the money) Be prepared to adopt (spend the money) whatever technology will put your content whatever technology will put your content in front of the commercial users of digital in front of the commercial users of digital stock photography.stock photography.