Getty Confidential Information: Part 1
Here are sections of Getty confidential info memorandum. How confidential and secret it is? Not too much since they posted it on the web. It's on the SEC[^1] EDGAR[^2]. The full document is available at: Getty SEC fillings
— Getty: EXCERPTS FROM CONFIDENTIAL INFORMATION MEMORANDUM — Jun 2008
Trends in Imagery Market
Two key trends are currently impacting the imagery market in which Getty Images operates. The first major trend is the transition from traditional print-based image usage to web-based usage. Corporations and advertising agencies are relying more heavily on electronic communication, including Internet advertising, and therefore are printing fewer brochures and marketing collateral. The second major trend is the introduction of microstock images. The proliferation of microstock has significantly expanded the imagery market, both increasing the number of available stock images and providing stock images at price points affordable for smaller businesses. Together, these two key trends are leading to a dramatic overall increase in the number of images being used, which benefits Getty Images, as a leading supplier of pre-shot imagery. A significant portion of this new demand, however, is at lower price points than traditional print-based stock imagery and has put pressure on overall industry revenues. These two key trends are described in more detail below, as well as a description of their overall impact on Getty Images.
Transition from Print to Web
As usage of the Internet continues to grow, there has been a general shift in advertising, corporate communications and other media online. As a result of this shift, there has been a decline in the use of print materials. This shift has coincided with overall growth in Internet advertising, which is expected to grow at a CAGR of 17.9% from 2007 to 2011.
Imagery used online is characterized by lower resolutions and lower price points but significantly higher volumes than print-based applications. Web-use image licenses carry lower price points because of the lower required resolution, lower quality requirements, and shorter usage duration. The volumes are higher however because of the larger number of pictures used in a single application (images per page and pages per site) and the frequency of website refreshes (often requiring different images).
The shift from print to web usage is not impacting certain end-uses such as high-end marketing (e.g., magazine ads), outdoor advertising and publishing (e.g., textbooks), primarily because these end-uses still require high resolution, high quality images with higher-touch service and more comprehensive rights management. Additionally, while Editorial content is also migrating online, the price per image is not changing as significantly because a large percentage of Editorial images are "current event" imagery delivered via wire service for combined print and web use.
Do I hear a huge Duuuhhhhh. How much money did they spend to figure the transition from print to web? On the other hand, here is what Getty says [reformatted for my emphasis]:
- The shift from print to web usage is not impacting certain end-uses such as high-end marketing (e.g., magazine ads), outdoor advertising and publishing (e.g., textbooks), primarily because these end-uses still require high resolution, high quality images with higher-touch service and more comprehensive rights management.
- Additionally, while Editorial content is also migrating online, the price per image is not changing as significantly because a large percentage of Editorial images are "current event" imagery delivered via wire service for combined print and web use.
This means that you will get more money for your photos if you provide:
- High resolution images
- High quality images
- Proper rights management
Also see: Getty Confidential Information: Part 2