The E-Commerce of Licensing Stock Photography Online Com 538 Don Wilson 9 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 agencies corporate consumers 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 photographers corporate consumers images $ Possible Stock Photography Business Model

Overview A brief history of stock photography A brief history of stock photography  The transition from analog to digital  The rapid adoption of e-commerce The stock photography industry today The stock photography industry today The future of online stock photography The future of online stock photography What does it all mean? What does it all mean?

The early days Since the1840s existing photography has been sold commercially. Since the1840s existing photography has been sold commercially.  Stereoviews marketed through catalogues  Cityscapes of Paris sold to painters In the 1930s and 1940s corporations sold their public relations and marketing photos. In the 1930s and 1940s corporations sold their public relations and marketing photos.

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

1970 – 1990 Advertising discovered stock and vice versa Business model shifted from out-takes to concept- based, generic images that could be resold many times Business 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 Time and Sport Illustrated started downloading news photos 1993 Time and Sport Illustrated started downloading news photos 1995 Corbis and Getty began acquiring stock agencies and picture collections 1995 Corbis and Getty began acquiring stock agencies and picture collections 2001 the business model is “everything online” 2001 the business model is “everything online”

Digital stock in terms of diffusion theory Digital stock enabled by rapid adoption of digital technology Reciprocal interdependence (Rogers, 2003) Rate of adoption curve similar to that of Internet

E-commerce in terms of brakes and accelerators theory Accelerators: images are digital and image culture is tech savvy Accelerators: images are digital and image culture is tech savvy Brakes: complex negotiations, expensive technology, proprietary imagery Brakes: complex negotiations, expensive technology, proprietary imagery Result: technology overcomes brakes Result: technology overcomes brakes

The present … Corbis and Getty control 90% of the market Corbis and Getty control 90% of the market Corbis has 70 million images, about 1.5% are online – Getty has roughly the same Corbis has 70 million images, about 1.5% are online – Getty has roughly the same Getty’s sales for 2003 will be about $.5 billion – more that 90% are e-commerce Getty’s sales for 2003 will be about $.5 billion – more that 90% are e-commerce October 2003, Getty generates 5 billion thumbnails per month October 2003, Getty generates 5 billion thumbnails per month

The future … Technology will continue to advance the e-commerce of stock photography  Semantic Web  SimSearch  Isilon

The market will demand greater selection of imagery Commercial creatives will remain the “cultural mediators” (Frosh, 2001) The “Wal Mart” model of e-commerce will continue

Corporations may begin creating their own stock collections Corporations may begin creating their own stock collections  Good for photographers  Bad 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) whatever technology will put your content in front of the commercial users of digital stock photography.