Heavy discounting of premium stock imagery risks future revenue potential from major digital uses, as budgets shift from print to online.
September 10, 2007. Last week, Getty Images announced a new $49 “web use” license for images from all of its collections, including its highest quality Rights Managed collections. With this move, Getty has effectively slashed the value of commercial web use licenses by up to 96% off their established rates for Rights Managed photography.
In a coordinated response, leading trade associations representing over 12,000 professional photographers have called upon Getty Images to remove all Rights Managed imagery (including their Rights Ready brands) from this new license product.
The Stock Artists Alliance (SAA), the American Society of Media Photographers (ASMP), the U.K. Association of Photographers (AOP), Advertising Photographers of America (APA), Editorial Photographers (EP), and the Canadian Association of Photographers (CAPIC) represent top advertising and editorial assignment photographers and thousands of stock photographers— including many Getty contributors.
Their shared concern is that this extreme competitive response by Getty Images presents huge risks to the image licensing business, and threatens the livelihoods not only of Getty contributors but of professional photographers industry-wide.
In a joint letter sent to Getty Images CEO Jonathan Klein today, the associations have urged the company to reconsider this plan and remove the Rights Managed collections from the $49 license scheme. “Offering your very best imagery at heavily discounted prices," they contend, “may well increase volume, but it also risks undermining Getty’s core licensing business—as well as the businesses of the independent contributing photographers who create and own the majority of imagery in your RM collections.”
Furthermore, the letter states, “As the market leader, Getty’s actions affect the entire industry. We therefore expect that your action of devaluing digital usage risks the long-term earning potential from image licensing, whether it be stock or commissioned."
Anticipated consequences of this dramatic move, they suggest, include:
1. Loss of high-value digital license revenue.
Getty is unnecessarily giving up money from commercial and high-end advertising customers willing to pay premium prices for the most exclusive imagery. Now these same customers are rapidly shifting their large media budgets from print to the web as the internet emerges as their primary marketing platform. Spending for web advertising by these customers can easily rival traditional media budgets with many spending hundreds of thousands of dollars on relatively small media buys. This $49 deal gives away valuable rights for minimal prices that will not be replaced by increased volume for this kind of commercial usage.
2. Devaluation of RM licensing.
Flat-rate license fees run counter to the Rights Managed premise that price and value are commensurate with usage. The $49 deal lumps together buyers for global online ad campaigns with small mom-and-pop shops and local web uses. Flat-rate unit pricing is already being offered in Royalty Free products, and this new product will offer value-conscious customers access to quality RF imagery. There's no need to extend it in RM. Offering the very best images at a bargain price point communicates to customers that all images, even the very best and most creative, are all worth the same.
3. Erosion of prices across the board.
The devaluation of web usage prices will lead to devaluing print and outdoor usage that will pave the way to further steep price cuts across all types of licenses. Once customers can obtain a major use license of an RM image at this cost, they will likely question the validity of being charged significantly higher rates for other uses.
4. Reduced return for photographers.
Lower per-image returns for photographers make it more difficult to produce the highly creative images that form the core of creative RM stock collections. These images cannot be produced in volume, and photographers are already feeling the impact of reduced revenues. This move further strains the viability of independent photographers' businesses, and will result in less fresh imagery available for customers.
5. Reduced recovery value for images.
The offering by the world's largest stock image supplier of all their images across the board at a $49 price point will have a serious impact on the valuation of claims in the courts for copyright infringement and lost/damaged originals. It also undermines the proposition that each image is unique and has to be valued on its own merits. Infringements of stock images are already at crisis levels—especially for web and digital uses. We are alarmed that a consequence of the low value established for web uses will dampen efforts to enforce copyrights and recover otherwise lost revenues.
Pricing on GettyImages.com for Web Uses
| Collection | License Use placement / term |
Current Prices | New Price (500KB) | %Change |
| RM |
Commercial Website
one page / 1 year |
$680 - $870 | $49 | 93% – 95% reduction |
| RM |
Web Banner Ad
unlimited / 1 year |
$1140 - $1460 | $49 | 96% reduction |
| RR | Web & Electronic unlimited / 10 years | $550 - $650 | $49 | 91% - 92% reduction |
| RF | Unlimited, Perpetual | $55 - $145 (1MB) |
$49 | 11% - 66% reduction |
Evolution is Needed
There is no doubt that stock licensing and pricing models must evolve to address the needs of a diversified marketplace of new media users, which include major stock image users, as well as new kinds of customers. An essential part of this evolution must include logical and consistent licensing and pricing structures that make sense to the customer, and that preserve the value of high quality professional imagery.
In closing, the association letter states: “We are eager to work with Getty Images and other leaders in the industry to find ways to evolve image licensing that address the changing needs of new media customers, and which leverage the distinctive value associated with Rights Managed imagery in a changing marketplace. We have a mutual interest in growing our image licensing businesses but respectfully contend that we must explore better ways to do so, which do not risk the value of what we have created.”
SAA president Roy Hsu, an Advertising Art Director specializing in digital media and stock photographer, explains: “Digital advertising is currently the fastest growing segment and will become the key source of high end advertising within the next few years. Internet based campaigns now can define brand campaigns and make headlines on their own, which used to be reserved by print and broadcast. Media budgets for online are now comparable and sometimes higher than those of traditional print media. This pricing scheme oversimplifies a complex industry by mixing the high and low end users together, and the discounting these digital uses is in effect giving up on the high-end customer."
Coordinated Action by Photographer Associations
This is the latest example of coordinated advocacy initiatives by leading photographer trade associations who are increasingly working together to address issues of common concern to their members. They have also joined together as members of the PLUS, The Picture Licensing Universal System; and the Imagery Alliance, a diverse coalition of industry stakeholders formed to respond to proposed “orphan works” legislation, and to champion the need for industry licensing and metadata standards, and copyright education.
Contacts:
Betsy Reid, SAA Executive Director 305-733-2737
Roy Hsu, SAA President 917-363-5292
About SAA
SAA is the only trade association dedicated to the business interests of professional stock photographers, supporting its global membership with substantial information resources and ongoing advocacy initiatives. www.stockartistsalliance.org
About ASMP
The American Society of Media Photographers (ASMP) is the premier trade association representing the interests of publication photographers for over 60 years. www.asmp.org
About AOP
The Association of Photographers (AOP) is a UK based professional trade association with in excess of 1800 members working in the fields of fashion, advertising, editorial and design. Established in 1968, the AOP brings professional photographers together, protecting their rights and promoting photography. www.the-aop.org/
About APA
The Advertising Photographers of America (APA), the leading trade association representing the interests of advertising photographers, works to improve the environment for success in the industry and champions the rights of photographers worldwide. www.apanational.com
About EP
Editorial Photographers (EP) is an organization of 2,000 of the top magazine and news photographers from around the world dedicated to improving business practices and contracts.
www.editorialphoto.com
About CAPIC
The Canadian Association of Photographers and Illustrators in Communications (CAPIC) was founded in 1978 to safeguard the rights of photographers and illustrators and digital artists working in the Canadian communications industry. www.capic.org
via email September 10 2007
to Jonathan Klein, CEO, Getty Images
Dear Mr. Klein,
We, the leadership of SAA, ASMP, AOP, APA, EP and CAPIC, are calling upon Getty Images to remove all Rights Managed images (including Rights Ready brands) from your new discount pricing scheme which reduces the value of this imagery to $49 for web and digital usage.
Collectively, our trade associations represent the interests of over 12,000 professional photographers, including top advertising and editorial assignment photographers and thousands of stock photographers, many of whom are Getty contributors.
Our shared concern is that this move by Getty Images presents huge risks to Getty’s Rights Managed licensing business, which threatens the livelihoods of your independent contributors as well as professional photographers industry-wide.
While this marketing strategy of offering your very best imagery at heavily discounted prices may well increase volume, it also risks undermining Getty’s core Rights Managed licensing business—as well as the businesses of the independent contributing photographers who create and own the majority of imagery in your RM collections.
As the market leader, Getty’s actions affect the entire industry. We therefore expect that Getty’s devaluation of digital usage will risk the long-term earning potential from image licensing, whether it be stock or commissioned.
Specifically, we anticipate the following likely consequences:
1. Loss of high value digital license revenue.
Getty is unnecessarily giving up money from commercial and high-end advertising customers willing to pay premium prices for the most exclusive imagery. Now these same customers are rapidly shifting their large media budgets from print to the web as the internet emerges as their primary marketing platform. Spending for promotional websites and web advertising by these customers can easily rival traditional media budgets. This $49 deal gives away valuable rights for minimal prices that will not be replaced by increased volume for this kind of high-level usage.
2. Devaluation of RM licensing.
Flat-rate license fees run counter to the Rights Managed premise that price and value are commensurate with usage. The $49 deal lumps together buyers for global online ad campaigns with small mom-and-pop shops and local web uses. This flat-rate unit pricing is already being offered in Royalty Free products and this new price point will offer value-conscious customers access to quality RF imagery. There's no need to extend it in RM. Offering the very best images at a bargain price point communicates to customers that all images, even the very best and most creative, are all worth the same.
3. Erosion of prices across the board.
The devaluation of web usage prices will lead to devaluing print and outdoor usage that will pave the way to further steep price cuts across all types of licenses. Once customers can obtain a major use license of an RM image at this cost, they will likely question the validity of being charged significantly higher rates for other uses.
4. Reduced return for photographers.
Lower per-image returns for photographers make it more difficult to produce the highly creative images that form the core of creative RM stock collections. These images cannot be produced in volume and photographers are already feeling the impact of reduced revenues. This move further strains the viability of independent photographers' businesses and will result in less fresh imagery available for customers.
5. Reduced recovery value for images.
The offering by the world's largest stock image supplier of all their images across the board at a $49 price point will have a serious impact on the valuation of claims in the courts for copyright infringement and lost/damaged originals. It also undermines the proposition that each image is unique and has to be valued on its own merits. Infringements of stock images are already at crisis levels—especially for web and digital uses. We are alarmed that a consequence of the low value established for web uses will dampen efforts to enforce copyrights and recover otherwise lost revenues.
Mr. Klein, we respectfully urge you to reverse this decision now, before it is well established and the impact is fully realized. We are eager to work with you and other leaders in the industry to find mutually beneficial ways to evolve image licensing that address the changing needs of new media customers and which leverage the distinctive value associated with Rights Managed imagery in a changing marketplace.
We have a mutual interest in growing our image licensing businesses but respectfully contend that we explore better ways to do so, which do not risk the value of what we have created.
On behalf of our Boards of Directors,
Roy Hsu, President
Stock Artists Alliance (SAA)
Judy Hermann, President
American Society of Media Photographers (ASMP)
Michael Harding, President
Association of Photographers (AOP)
Don Dormeyer, President
Advertising Photographers of America (APA)
Brian Smith, President
Editorial Photographers (EP)
Michael Kohn, President
Canadian Association of Photographers (CAPIC)
