2008-02-26, 22:59:04
Fajnie... widzę, ze cos tam Yuri im nawkładał. Niestety moja angielszczyzna jest za cienka - niewiel zrozumiałem. Może ktoś przetłumaczy
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This announcement sounds great and will be very welcome. But:
However, for the commission increase to be enough to hold photographers like myself, it has to be substantial.
There is so much money to be made from putting up prices a lot. My average income per sold file is 1.1 USD on IS and my average on Fotolia is over 4 USD net revenue.
SS has dropped from being my number one earner to my forth in one year, and it is only because of the commission and pricing structure. If Shutterstock should be my number one earner the commission should be about 1 USD per sold image and they would go even or so with IS and FT.
The next year will be a breaking point: It is up to Shutterstock and their ambition of future success: A low commission is like peeing in your pants to keep warm: It will give the agency a good profit in the sort run, but you will be losing revenue in the long run. The Shutterstock increase in prices last year of 70% and commission increase of only about 30% leaves Shutterstock with wet pants that have to be dried.
Imagine this: If you where an investor (I am myself) and you had just bought G for 2.6 billion. You would want to regain control over the price devaluation in stock photography and secure that high quality images was sold at a higher price. You would look at IS (owned by G), and the first conclusion would surely be to capture the best of the microstock photographers and make them exclusive to IS and push the prices up on the exclusive material. This would make it impossible for agencies like Shutterstock to compete because the return per images would be so much higher at IS. For Shutterstock to compete efficiently, the increase in commission must be as high as possible or IS will completely overtake the microstock market in just a few years from now.
Worst case scenario would be the same as last year: Very high increase in subscription price and a lower increase in contributor commission. I will be watching closely to see if the commission increase is proportional, or to make things right – higher, then the subscription price increase.
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This announcement sounds great and will be very welcome. But:
However, for the commission increase to be enough to hold photographers like myself, it has to be substantial.
There is so much money to be made from putting up prices a lot. My average income per sold file is 1.1 USD on IS and my average on Fotolia is over 4 USD net revenue.
SS has dropped from being my number one earner to my forth in one year, and it is only because of the commission and pricing structure. If Shutterstock should be my number one earner the commission should be about 1 USD per sold image and they would go even or so with IS and FT.
The next year will be a breaking point: It is up to Shutterstock and their ambition of future success: A low commission is like peeing in your pants to keep warm: It will give the agency a good profit in the sort run, but you will be losing revenue in the long run. The Shutterstock increase in prices last year of 70% and commission increase of only about 30% leaves Shutterstock with wet pants that have to be dried.
Imagine this: If you where an investor (I am myself) and you had just bought G for 2.6 billion. You would want to regain control over the price devaluation in stock photography and secure that high quality images was sold at a higher price. You would look at IS (owned by G), and the first conclusion would surely be to capture the best of the microstock photographers and make them exclusive to IS and push the prices up on the exclusive material. This would make it impossible for agencies like Shutterstock to compete because the return per images would be so much higher at IS. For Shutterstock to compete efficiently, the increase in commission must be as high as possible or IS will completely overtake the microstock market in just a few years from now.
Worst case scenario would be the same as last year: Very high increase in subscription price and a lower increase in contributor commission. I will be watching closely to see if the commission increase is proportional, or to make things right – higher, then the subscription price increase.
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