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Author Topic: Economic slump and its effects  (Read 3686 times)

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« on: August 30, 2008, 02:17 »
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In an interview in a UK newspaper this weekend, the UK's Chancellor of the Exchequer (Finance Minister) warns that the economic times faced by Britain and the rest of the world "are arguably the worst they've been in 60 years". To deepen the sense of gloom, he adds: "And I think it's going to be more profound and long-lasting than people thought."

How will that affect us? Will sales of images slump too as businesses/publishers/newspapers/magazines cut back on costs?

Or will they remain buoyant as advertisers/editors/etc desperately try to drum up new custom?

One aspect in favour of this 'industry' weathering the storm is its global nature. For example, just this morning I learned that I'd sold an image in South Korea. The global span of stock makes it different to other more localised industries.

Any other ideas?

(P.S. you can read the article here:

http://www.guardian.co.uk/politics/2008/aug/30/economy.alistairdarling)


« Reply #1 on: August 30, 2008, 07:35 »
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I would think more buyers would turn away from conventional higher prices sources to micro subscriptions.  Especially with the current trend in business towards consolidation -- sub prices become less important if your buying for 4 local newspapers rather than for just one.

« Reply #2 on: August 30, 2008, 11:58 »
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yeah you make a good point as to the global nature of microstock. I don't think we would suffer as much as say a wedding photographer

lisafx

« Reply #3 on: August 30, 2008, 12:36 »
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I would think more buyers would turn away from conventional higher prices sources to micro subscriptions.  Especially with the current trend in business towards consolidation -- sub prices become less important if your buying for 4 local newspapers rather than for just one.

This is my opinion too.   I think retailers will still try to drum up business, but they may be more likely to use microstock images over trad images because of price concerns.   

And so far this is borne out by my sales.  Yes, there has been a softening of sales over the summer, but actually much less than last year's big summer drop, and there wasn't even an official recession last year. 

WarrenPrice

« Reply #4 on: August 30, 2008, 12:39 »
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I was taking notice yesterday of the available bill boards.  There is a lot of blank advertising space available.  I've always heard that the advertising budget is first to be cut.  I lived thru this in the early '80s, watching many of the magazines to which I contribute cut the number of pages; then cut the staff; Several folded.   Granted, the market was not global during that period.  Actually, their was no microstock agencies, but the situation is certainly reminiscent of those times.

PaulieWalnuts

  • On the Wrong Side of the Business
« Reply #5 on: August 30, 2008, 12:48 »
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I think buyers' clients are already putting pressure on them to reduce prices. So buyers of macro may turn to micro and micro buyers may turn to whatever free stuff they can dig up.

I would think that macros will suffer more than micros.  And micros may see a drop but not a huge one.

michealo

« Reply #6 on: August 30, 2008, 13:04 »
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In a recession advertising becomes even more important. Also microstock is a small percentage of the cost of advertising.

graficallyminded

« Reply #7 on: August 30, 2008, 13:13 »
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You're right - when business is down, you need more in store signage, more ads, more marketing to get people into the stores.  So business is win win in this stock photo field.

« Reply #8 on: August 30, 2008, 14:25 »
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Years ago, I worked for a small chain of Heath & Beauty aids stores.

The stores ran a newspaper flier once a month to coincide with when retired people received their social security checks.
Always had a big boot in sales.

When the economy started to slump. they cut out the fliers.
They went belly up six months after that.

Anyone that cuts advertising, is cutting their own throats, at least in the retail world.

« Reply #9 on: August 30, 2008, 15:00 »
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Quote
Anyone that cuts advertising, is cutting their own throats, at least in the retail world.

I wish someone would tell tell this to my day-job boss!  We are slow, so what does he do?  Blames it all on the sales staff and then cuts advertising  ::) 


 

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