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Author Topic: Moving iStock Forward - September 2, 2014. contributor newsletter  (Read 17980 times)

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« on: September 02, 2014, 12:15 »
0
Just got this in my e-mail.   I haven't been following the latest iStock happenings, so this was news to me. 
      
   
        
Moving iStock Forward - September 2, 2014

Since our launch over a decade ago, many millions of customers have made the choice to use iStock for their projects based on iStocks unique blend of high-quality content, affordable pricing and simplicity. To further benefit customers, we have introduced many innovations over the years. These include introducing premium collections, being the first to offer new content types such as video and music and leading the industry through innovations in search and user experience. These developments created tremendous value for our customers and contributor community and led to iStock being the leading player in the microstock space, which, as you know, was invented by iStock.

As we look forward and plan for the next stage of iStocks growth and market leadership, we are energized by a world that is increasingly visual - more customers need more content, for more projects, distributed in more ways and in more formats and on more platforms. This sets a great foundation for continued iStock growth. It also means we must adapt iStock to service these new customers, to meet the increased demand from existing customers and support the realities of new higher resolution project requirements.

The introduction of the new iStock subscription offerings in April of this year, and the corresponding support from the Getty Images sales team was a very successful step in this direction. New iStock subscriptions offer high-volume customers the ability to expand their iStock usage and to access the highest resolution file in support of their projects. The customer reception has been overwhelmingly positive and has exceeded our expectations. In only a few months, these subscriptions now represent a meaningful percentage of total iStock sales and materially increased spend-per-customer. The results also demonstrate the power of unique and exclusive content; over three quarters of all subscription sales are generated from iStock Signature offerings. The reception of our iStock subscription offerings has validated the power of something that we have long understood - customers value quality!

We are offering just one payment method: Credits

Credit pack size and pricing will be simple and clearly aligned to the number and types of files customers can download.
Credits will be revalued, making it easy for customers to see exactly how much they are paying for an image.
The value of a credit will change: 5 credits today will be equal to 1 credit after we launch. The conversion ratio for existing credit balances ensures customers receive the same or better underlying value with their new credits. Example: balance of 50 credits converts to 10 credits in the new system.
After the conversion, customer usage of the newly valued credits will be reflected in Redeemed Credits totals at 5x the number used by the customer (i.e., their historic value).
Since we will re-calculate the new credit value to the equivalent old credit value for contributor Redeemed Credits, there will be no change in redeemed credits targets or reporting.
Our collection will be divided into two quality tiers;

Signature (premium) and Essentials (standard), consistent with our subscription offerings
We will maintain a consistent 3:1 price premium for Signature to Essentials for single image purchases.
Weve unified price points across photos, vectors and audio
1 new credit=1 Essentials image, vector or audio file
3 new credits=1 Signature image, vector or audio file
6 new credits=1 Essentials video file
18 new credits=1 Signature video file
No More Pricing by File Size

Customers will pay one price per file. They can then choose to download whichever file size best fits their project.
Simplification to two collections, two file types means:

Vetta and Signature+ will move to Signature, our premium collection for single image sales and subscription.
Main will become Essentials, our standard collection for both single image sales and subscription.
Detail by File Type:

Photos
Vetta and Signature+ move to Signature and will be included in the Signature Subscription offering.
The nomination processes will stay in place.
Accepted nominations and former Signature+ and Vetta images will retain Signature+ status and retain search prominence.
Signature+ (including x-Vetta) subscription downloads will pay at the Signature+ subscription rate.
Vetta royalty rates will no longer apply; all files will pay at standard royalty rates.
Former Vetta imagery will continue to mirror in the Vetta collection on Getty Images.
Existing and new Signature+ will be mirrored in the E+ collection on Getty images.

Videos
Vetta will be moved into the Signature collection.
Vetta royalty rates will no longer apply; all files will pay at standard royalty rates.
Former Vetta video clips will continue to mirror in the Vetta Video collection on Getty Images.
Exclusive video will continue to be mirrored on Getty Images in the renamed; Creatas Video collection on Getty Images (previously iStock Footage).

Vectors
Vetta will be moved into the Signature collection.
Vetta royalty rates will no longer apply, all files will pay at standard royalty rates.
All existing and new exclusive vectors, including former Vetta, will continue to be mirrored on Getty images in the renamed; Digital Vision Vectors collection (previously iStock Vectors).

Audio
Exclusive audio tracks will remain in the Signature collection.
Exclusive sound effects and basic complexity loops will move to the Essentials Collection to remain competitively priced in the market.
All non-exclusive audio files will remain in the Essentials collection.
In total, these changes dramatically improve the simplicity of the iStock site, search and messaging. At the same time, they significantly improve customer value and transparency while maintaining iStocks unique value of exclusive content across all file types. When combined with your great content, cross-merchandising from Getty Images and support from Getty Images global sales team, we are confident these changes will continue to set iStock apart from its competition for the years to come.

Weve prepared a discussion thread in the iStock forums, but we would also like you to take a look at a statement from Brad Ralph(braddy - Senior Director, Content Development and co-founder of iStock).

    
    
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    Copyright 2014 iStockphoto LP. All rights reserved. iStockphoto, iStock, iStockaudio, iStockvideo, iStockalypse, Vetta and CopySpace are trademarks of iStockphoto LP. All other marks are the property of their respective owners.
 


« Reply #1 on: September 02, 2014, 12:20 »
+2
Evething for 1 Dollar?
This sounds familiar... :-\

« Reply #2 on: September 02, 2014, 12:22 »
+6
"No More Pricing by File Size"

Woah!

« Reply #3 on: September 02, 2014, 12:23 »
+2
Evething for 1 Dollar?
This sounds familiar... :-\

Doesn't it say one new credit is 5 old credits?

« Reply #4 on: September 02, 2014, 12:24 »
+11
It's simpler. We just have to decipher what it all means.  ;)

« Reply #5 on: September 02, 2014, 12:26 »
+12
simple - more money for them, less for us.
The question is what sort of smoke and mirrors they have used to get to this result.

« Reply #6 on: September 02, 2014, 12:30 »
0
I'm a vector guy. I don't know if was a good or bad move. Any thoughts?

« Reply #7 on: September 02, 2014, 12:30 »
+4
It means that non-exclusive vectors currently sold for 15 or 12 credits will be all sold for only 5 credits (1 new credit).  So our files will be devaluated. Great, amazing, just what I needed...  :'(

« Reply #8 on: September 02, 2014, 12:33 »
+1
It means that non-exclusive vectors currently sold for 15 or 12 credits will be all sold for only 5 credits (1 new credit).  So our files will be devaluated. Great, amazing, just what I needed...  :'(

But it sounds like credits are going up in price x5.

Valo

« Reply #9 on: September 02, 2014, 12:34 »
+3

       
Quote
iStock .........    simplicity




« Reply #10 on: September 02, 2014, 12:36 »
0
It means that non-exclusive vectors currently sold for 15 or 12 credits will be all sold for only 5 credits (1 new credit).  So our files will be devaluated. Great, amazing, just what I needed...  :'(

But it sounds like credits are going up in price x5.

I hope so. At the very least 5x. If not, I will have to apply Plan B in emergency mode.

Shelma1

« Reply #11 on: September 02, 2014, 12:38 »
+8
Once again it sounds like they're grasping at straws and rejiggering everything without testing how it will be received, which only puts customers and contributors off.

« Reply #12 on: September 02, 2014, 12:40 »
+3
1 Essential image in any size = 1 new Credit = 5 old Credits = 0,75$ for the photographer (at 15%)

« Reply #13 on: September 02, 2014, 12:46 »
+3
This comment from IS paints the picture:
"Yep. I bet you're looking forward to getting a (slightly) higher percentage of the 15 credits (3 'new' credits) a Vetta image will cost - instead of the lower percentage of the 45 to 170 credits it costs now."

« Reply #14 on: September 02, 2014, 12:47 »
+8
Glad I've deleted my port when the getty made it free.

fujiko

« Reply #15 on: September 02, 2014, 12:47 »
+9
And their next announcement will be that iStock has the highest price per credit of all industry and they have to reduce it to stay competitive. With time the new credits will be even cheaper than today's credits.

ShadySue

  • There is a crack in everything
« Reply #16 on: September 02, 2014, 12:49 »
+4
So, is this Yuri's Big Idea for saving Midstock on iStock, while "project managing the develpment team"?
"We are working on a set of core site improvements that will dramatically improve user experience and ultimately sales. Only thing that I can say now: Give IS three months and see the changes for yourself." (June 3rd)
http://www.microstockgroup.com/istockphoto-com/can-istock-turn-midstock-sales-around/msg382833/#msg382833

I've only just come in to this (didn't get the email, but saw the link on a Fb group), so haven't digested it yet.

Seems I was wrong about one thing - it seems they are grandfathering in rates: "we can confirm that we will lock your royalty rates at the end of the year, ensuring your royalty does not decline in 2015. The rate you are earning now is the rate you will keep in 2015. If you achieve your target to move up based on 2014 RC targets, you will be locked in at the higher rate. "
http://www.istockphoto.com/forum_messages.php?threadid=362716&messageid=7040400

I have to say, they're going to have great difficulty selling the price tiers as "two 'quality' tiers" - although some recent acceptances have been 'questionable', no one can argue that all exclusive files are better than all indie files, however one defines 'better'.

« Reply #17 on: September 02, 2014, 13:06 »
+1
This means more or less money for indies?  They are getting rid of their existing subs plan where we make only .28 and instead we will make .75 to 1.00 depending on rc rank? 

Also I wonder if we will get stats in real time like every other site provides or we will now have to wait for the middle of the next month to know what we made for every sale?
« Last Edit: September 02, 2014, 13:17 by PixelBytes »

Shelma1

« Reply #18 on: September 02, 2014, 13:11 »
+29
I can hear the champagne corks popping at Shutterstock headquarters from here.

« Reply #19 on: September 02, 2014, 13:17 »
+7
It means that non-exclusive vectors currently sold for 15 or 12 credits will be all sold for only 5 credits (1 new credit).  So our files will be devaluated. Great, amazing, just what I needed...  :'(

That seems like the case, so it will be a pretty big price cut. Seems kind of stupid because I doubt they will make more money with this. Price cuts don't really create more volume anymore with credit sales. That's what subs are for.

« Reply #20 on: September 02, 2014, 13:19 »
+5
"No More Pricing by File Size"

Woah!

Sean, this is the real bomb shell of the whole letter, which contains more than a small amount of shrapnel.

« Reply #21 on: September 02, 2014, 13:21 »
+10
I love (sarcasm here) the idea of the NEW CREDIT. My eyes are hurting from the smoke.

« Reply #22 on: September 02, 2014, 13:23 »
+3
I love (sarcasm here) the idea of the NEW CREDIT. My eyes are hurting from the smoke.

New credit = new speak?

« Reply #23 on: September 02, 2014, 13:41 »
+3
Why are they even keeping up with the whole notion of "credits"?  It's obviously just a big pain anymore, the way they slide through deals and change pricing and everything.

« Reply #24 on: September 02, 2014, 13:42 »
+18
This looks like typical iSpeak. If I've read the whole email through once and the details aren't clear then I know whatever it means it isn't good for me.


 

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