Another Macro agent gives up the ghost

Oldhand

« on: June 25, 2009, 09:54 »

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Just got this lovely email from an old macro agent in Spain I have been supplying for 10 years, I'll have to avoid specific names, as I am friendly with them - suffice to say they are big and well established.

"As you must know, we have been focus during the last 30 years on the
market of lifestyle, health and beauty, travel, sports, RM and RF...and
food.

The general situation of the economy in Europe and specially in Spain has
caused that a lot of our clients has close their doors, and most others have
reduced their budget to less that 50%. So , the microstock has grown a lot
of lately. If the general situation of Spanish agencies wasn´t good,
microstock has getting worse their economy.

All the other areas so much saturated and prices are lower each month, and
it´s not interested to work, neither for us nor our suppliers. I know that this
is the same situation formuch of the Spanish agencies, that are experiencing
economic problems that we want to avoid. "

Another outlet in macro gone.

This isn't a complaining thread, just further evidence of where the wind is blowing in the macro world - thought it might interest some of you who haven't as many contacts in these areas.

It is, however, the first time I have heard of an agency citing microstock as a reason for abandoning it's core business practices. Glad I got my lifebelt on early, at this rate I'll jump ship totally in a couple of years.

Rgds

Oldhand


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Zeus

« Reply #1 on: June 25, 2009, 10:59 »

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Agencies have been going out of business for many many years. It would obviously be a stupid statement to say that micro is not affecting the macro market. However the economy is a much bigger problem right now. I see my micro sales falling and I see my macro sales falling.


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Oldhand

« Reply #2 on: June 25, 2009, 11:18 »

#link

Quite agree Zeus, however that's the second traditional outlet to fold on me so far this year. The economy will recover, micro is here to stay. I genuinely believe the impact of micro is greater than that of the economy.

I appreciate a lot of people on this forum don't have macro portfolio's, so am just trying to pass on some info.

Rgds

Oldhand


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e=mg2

New Member

« Reply #3 on: June 25, 2009, 13:08 »

#link

Quote from: Oldhand on June 25, 2009, 11:18

I have a Macro portfolio and my sales are getting better every month... While my micro income has stalled...

What does that prove?

As for Micro damaging the Macro, I think that Micro is an easy scape-goat for the incompetence of some of these agencies.

Do you see RM in Micro? Do you see expensive productions in Micro? No!

So how can Micro make a Macro agency to close? The only reason is that the Macro agency has a poor portfolio and/or is incapable to market their imagery.

In every industries you have low-cost and high-end (from cars to yogurts), and the low-cost never closed the competent high-end competitors.

The economy is in fact the main guilty for this situation.

Regards,
e=mg2


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gostwyck

« Reply #4 on: June 25, 2009, 13:17 »

#link

Quote from: e=mg2 on June 25, 2009, 13:08

The economy is in fact the main guilty for this situation.

That's because the economy exposes weaknesses in business models. To quote WB "It's only when the tide goes out ... etc"

Microstock in my view is in robust good health. My May 2009 was 29.6% up on May 2008 (which itself was 80% up on 2007) and this month is projected to be 35% up on June 2008. What's not to like?

Thanks for the post Oldhand. Interesting reading.


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willie

« Reply #5 on: June 25, 2009, 14:57 »

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Congratulation on a very insightful reference to the current state of stock, Old Hand.

Everyone else comes up with the most negative statments incl pointing the finger to micro . It never even dawn on me to ask myself the same questions of my own history of my photo career which has span some 20 years .
How many of those newspapers that paid me 150$ per page of a single photo essay? How many of those pro photo stores that I worked and managed are still around today? How many successful photographers are still making tons of money in their business of complete one stop photo need (lab, retouching,off set, printing, frame,etc)?
None. They all closed their doors right after the stock market crash before this recent one. Even the businesses that hires photographers have all restructured and I know no one in the hiring dept. There is no hiring dept but more so one person handling everything.
So why did we not think of it when someone ask why stock photography is so bad nowadays? Hell, it's been 20 years. Like schooldays, it won't be the same.

Good job in pointing us in the right direction. Next time someone asks me the question of the state of stock photography. I know what to answer them.
Cheers.


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puravida

« Reply #6 on: June 25, 2009, 15:15 »

#link

Quote from: gostwyck on June 25, 2009, 13:17

Quote from: e=mg2 on June 25, 2009, 13:08

The economy is in fact the main guilty for this situation.

speaking of economy. here's something to make us all feel more depressive.
i read somewhere that in each of our lifetime, each one of us will live to experience at least 3 Great Depression , ie. Market Crash where many lose jobs,etc..
Geesh, talk about bad karma . Which of our ancestors fXck it all up for us ? Roll Eyes


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PixelBytes

Premium Member

« Reply #7 on: June 25, 2009, 15:29 »

#link

Quote from: puravida on June 25, 2009, 15:15

Well, I was alive for the market crash in 87, and now this one, so I am only due one more. That's actually good news Cheesy


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astrocady

« Reply #8 on: June 25, 2009, 16:15 »

#link

Quote from: puravida on June 25, 2009, 15:15

Seems to me we've been in one big depression every since I moved out of my parent's house 35 years ago!


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willie

« Reply #9 on: June 25, 2009, 16:58 »

#link

Quote from: astrocady on June 25, 2009, 16:15

Seems to me we've been in one big depression every since I moved out of my parent's house 35 years ago!

rofl, it does seem like it, doesn't it. The only people who saw (Recovery in the Economy) are your Investment Managers who (re-alloted your Stock Portfolio) and then 6 years down the road tells you that you made a (profit due to their ingenius advice to reallotment). In other words, change your Book Value so it does not reflect the initial purchase before the first correction, market crash, deflation,etc...

Good point astrocady ! Cool

puravida, cheers for pointing this out to us. Misery is less pain when we company in suffering Cheesy


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michealo

« Reply #10 on: June 25, 2009, 18:01 »

#link

Quote from: gostwyck on June 25, 2009, 13:17

Quote from: e=mg2 on June 25, 2009, 13:08

The economy is in fact the main guilty for this situation.

Its funny to see you quoting WB ...


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Oldhand

« Reply #11 on: June 26, 2009, 05:05 »

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Hi all - actually it's the second Spanish agent I have lost in 2 years - I had one for sport, and one for everything else. The sport one got swallowed by a larger competitor, the other a victim of the economy and, in their words, direct competition from micro. Add to that a German one last year that found it's RF market disintegrate with competition.

I supply Alamy, they have nose-dived the in the editorial market, and those I supply directly are cutting back on budgets.

My only growth area - micro.

Capitalism is great if you diversify

Oldhand


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Gizeh

« Reply #12 on: June 26, 2009, 06:29 »

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I am afraid the role of the current recession is not as important as we hope. I am with Steve Ballmer http://www.guardian.co.uk/media/2009/jun/24/microsoft-steve-ballmer-cannes and other experts who think that we will not see a bounce back after the recession ends.

Buyers move online at a rapid pace but most micro and macro agencies still haven't found a solution for charging healthy prices for it. Isn't it absurd that a company like Microsoft would need to pay only 1$ for a low-res pic that gets billions of pageviews while a small shop pays 20$ for a high-res pic that gets used for a single poster or a handful of brochures?


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gostwyck

« Reply #13 on: June 26, 2009, 06:38 »

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It's always the same. Every time we have a recession 'the rules' change permanently, not temporarily.

I remember having a conversation with a supplier in the early 90's. I asked him how he was coping with the recession. "What recession?" he said glumly "This is how it is now". He was right too.