Mathematically, it is the same as going from 20% to 14%, which is pretty much what they did to indies on iS. If you take account of the fact that some sales were already at that level, it might be more like going from 20% to 16% or 17% which, I suppose, is the sort of loss that they have determined most photographers will swallow.
I suppose our basic problem is that since we have already done the work against the hope of future payment, it becomes difficult to say we would rather take nothing at all than accept a less than we expected. Psychology is always on Getty's side.
I suspect that they are trying to get to a blended rate of 20% on IS down form the blended rate of 28%
that would be a hefty increase to net margin
as in if the net margin is 8%, doing nothing but dropping the blended payout from 28% to 20% doubles your net margin
simplistic example
2008
total cost of sales 64%
blended contributor 28%
margin 8%
2011
total cost of sales 64%
blended contributor 20%
margin 16%
or if they managed cost of sales tightly
2011
total cost of sales 56%
blended contributor 20%
margin 24%
