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Author Topic: Fotolia just seems to have increased prices  (Read 2764 times)

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saniphoto

« on: October 25, 2011, 14:08 »
0
Interesting reading on their forum (message from a buyer):

/QUOTE

Hi - as a buyer, I've bought monthly subscriptions on and off here for years... the last time in Dec 2010, it was $199/month:

Type of subscription : 1 month
Date : 11-27-2010 03:59:38 am
Duration in days : 30
Expiration date: 12-27-2010 03:59:38 am
Number of download per day : 25 images / day
Type of license : Royalty free
Size : L
Price : $ 199.00

Now it looks like Fotolia just Raised the Subscription rate by 25%, to $249??  Is that right?  At least I hope they're paying you authors more if that's the case.. (?) if they're raising subscribtion rates then they should raise the author payout rate too to be fair, I'd think.

But as a buyer, in this economy, raising rates obviously I will not be subscribing here anymore -- if anything, you should be LOWERING subscription rates.  When I got an email today saying "new subscription plans" I thought it would be for a Better deal.  Instead it was a way to disguise a 25% Rate HIKE with two features I'll never need (rollover unused into subsequent month and XXL which I never download).

And are VIDEO still included or not?  On the new subscriber plan page it doesn't say anything about videos anymore.

Fotolia please reconsider this 25% Rate hike, or I will not be subscribing much anymore...  or did I get something wrong?   It looks like a "whopping 25% rate hike for subscribers", unless I'm missing something?

thanks..
/QUOTE

This follow the recent announcement in the newsletter. They are going absolutely on the IS route... unbelievable. I am continuing to delete my files that are unduly set back to 1 credit as I don't allow FT to license my images for less than other agencies (1 credit for XS image results in 0.37 royalties net, even at SS, as subscription, I got more! I don't compare subs to subs as is still a worse comparison... for FT of course).
Wish them a slow agony.


« Reply #1 on: October 25, 2011, 14:56 »
0
Hm. not sure when the price increase was.. but in early 2010 their most expensive price/credit was $1.14, now it's $1.20

Worst case scenario right now is buyer buys 25 credits at 1.20 Euro/credit
1.20 EUR    =    1.66880 USD

US White Photographer gets paid 20% commission of 1 credit which the buyer paid $1.67 for
$0.20 / $1.67 = 12% commission (instead of 20%)

Best case scenario
Buyer pays $4800 on 6400 Credits ($0.75 / file) or 0.54 Euro
EU White Photographer gets paid 20% commission of 1 credit which the buyer paid 0.54 Euro for
Euro 0.20 / 54 = 37% (instead of 20%)

« Reply #2 on: October 25, 2011, 16:12 »
0
But as a buyer, in this economy, raising rates obviously I will not be subscribing here anymore -- if anything, you should be LOWERING subscription rates. 

Definitely not the kind of buyer you want around anyways, lol.

« Reply #3 on: October 25, 2011, 16:16 »
0
Hm. not sure when the price increase was.. but in early 2010 their most expensive price/credit was $1.14, now it's $1.20

Worst case scenario right now is buyer buys 25 credits at 1.20 Euro/credit
1.20 EUR    =    1.66880 USD

US White Photographer gets paid 20% commission of 1 credit which the buyer paid $1.67 for
$0.20 / $1.67 = 12% commission (instead of 20%)

Best case scenario
Buyer pays $4800 on 6400 Credits ($0.75 / file) or 0.54 Euro
EU White Photographer gets paid 20% commission of 1 credit which the buyer paid 0.54 Euro for
Euro 0.20 / 54 = 37% (instead of 20%)


Following your calculation, in the "best case scenario" FT would make a loss on a sale of an emerald or higher exclusive member....

Or to put it differently: On FT you can get (at least theoretically) up to 116% commission !!!

Maybe one of the reasons I don't see any sales to the US (around 2% of all sales are marked as "US sales"). It's just too expensive to market images of contributors paid in Euros in the US (and their crappy keyword translation helps a lot to make my files un-findable on the US site).

« Reply #4 on: October 25, 2011, 16:18 »
0
But as a buyer, in this economy, raising rates obviously I will not be subscribing here anymore -- if anything, you should be LOWERING subscription rates. 

Definitely not the kind of buyer you want around anyways, lol.

Or maybe eliminating subscriptions?  ;D

« Reply #5 on: October 25, 2011, 17:36 »
0
Since FT uncoupled contributor rates from the price buyers pay for images, a price rise there is nothing to get excited about.

OM

« Reply #6 on: October 25, 2011, 18:35 »
0
I think that the subscription price hike is recent, after the site was re-designed. It's almost as if FT has exchanged USD as its standard currency on which everything was based, for the euro. A one-month sub in is now 199 but I don't know if that's changed...........anyone know?

« Reply #7 on: October 25, 2011, 18:56 »
0
Since FT uncoupled contributor rates from the price buyers pay for images, a price rise there is nothing to get excited about.

Except it might send buyers elsewhere.

« Reply #8 on: October 25, 2011, 22:08 »
0
I was missing news from top agencies, glad they are still alive and kicking, cant wait to see more  ;D

PaulieWalnuts

  • You talkin' to me?
« Reply #9 on: October 25, 2011, 22:10 »
0
Oh the agony. The buyer can download 750 images in a month for $199 which is 26 cents per image.

Images used to cost over $199 each.

Wah.

ETA: This illustrates why subscriptions need to be eliminated.
« Last Edit: October 25, 2011, 22:11 by PaulieWalnuts »

« Reply #10 on: October 25, 2011, 23:41 »
0
They are so smart.
Lowering the royalty of subscription to contributors to stay competitive and increasing the price to buyers to be the cheapest subscription ever, they sure are doing a lot of money with this idea and they will be able to sustain the growth in profits for at least one more term. ::)

« Reply #11 on: October 26, 2011, 02:00 »
0
Hm. not sure when the price increase was.. but in early 2010 their most expensive price/credit was $1.14, now it's $1.20

Worst case scenario right now is buyer buys 25 credits at 1.20 Euro/credit
1.20 EUR    =    1.66880 USD

US White Photographer gets paid 20% commission of 1 credit which the buyer paid $1.67 for
$0.20 / $1.67 = 12% commission (instead of 20%)

Best case scenario
Buyer pays $4800 on 6400 Credits ($0.75 / file) or 0.54 Euro
EU White Photographer gets paid 20% commission of 1 credit which the buyer paid 0.54 Euro for
Euro 0.20 / 54 = 37% (instead of 20%)


Following your calculation, in the "best case scenario" FT would make a loss on a sale of an emerald or higher exclusive member....

Or to put it differently: On FT you can get (at least theoretically) up to 116% commission !!!

Maybe one of the reasons I don't see any sales to the US (around 2% of all sales are marked as "US sales"). It's just too expensive to market images of contributors paid in Euros in the US (and their crappy keyword translation helps a lot to make my files un-findable on the US site).


Yeah, you are right and I think that tells us exactly how many people are at the highest commission level and how many buyers buy $4800 packages.

« Reply #12 on: October 26, 2011, 02:28 »
0
Oh the agony. The buyer can download 750 images in a month for $199 which is 26 cents per image.

Images used to cost over $199 each.

Wah.

ETA: This illustrates why subscriptions need to be eliminated.

Instead of Subscriptions they should call it the Free Section.
A buyer will have no problem marking up those downloads to get back the 199 dollars and could easily make much more.

grp_photo

« Reply #13 on: October 26, 2011, 02:56 »
0
But as a buyer, in this economy, raising rates obviously I will not be subscribing here anymore -- if anything, you should be LOWERING subscription rates. 

Definitely not the kind of buyer you want around anyways, lol.
If the buyer switch from subscription to pay per image it's good for us, subscription only works in favour for the agencies not for us.

OM

« Reply #14 on: October 26, 2011, 03:55 »
0
I think that the subscription price hike is recent, after the site was re-designed. It's almost as if FT has exchanged USD as its standard currency on which everything was based, for the euro. A one-month sub in is now 199 but I don't know if that's changed...........anyone know?

Had a night to think it over and the increased price of FT subs must have taken place at the same time as the contributors got their double whammy.
Before the new site layout, there were 2 subs types: Standard sub for 750 downloads/month @ up to 'L' size for $199 and a Premium sub for 750 downloads/month @ 'XL' size and above for $249. On August 16th, FT informed contributors and subscribers that the 2 subs packages were to be merged into one and that subs commissions would be standardised at a lower rate than even the standard subscription rate prior to the change. Thus allowing subscribers to download even the most massive files for buttons!

Re. question on vectors:
Quote
Our daily subscription plans give you access to high-resolution images, vector illustrations, and even videos (1 "M" resolution video = 5 downloads).

« Reply #15 on: October 26, 2011, 04:13 »
0
Is this why 123RF is now in the Big 4 in the earnings results and FT is sinking?  They have made me lose all motivation to upload anything new and I really don't mind if buyers go elsewhere.


 

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