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Author Topic: why does RF offer lower % than RM  (Read 3658 times)

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« on: November 20, 2006, 09:19 »
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why is it that royalty free places like iStockphoto off lower % of the sale price than rights managed places? Considering that the overhead of Rights Managed is higher than RF. So why is this?


« Reply #1 on: November 20, 2006, 09:27 »
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i'm not totally sure of the question but i will give it a shot.

I don't think the % the stock site takes has much to do wether it is RF or RM.

alamy for example which sells both RM and RF takes the same percentage for both types of licensing.  I think it has more to do with the financial setup and plan of the stock site than the type of licensing involved.

« Reply #2 on: November 20, 2006, 09:49 »
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I dont think that is a factor. 

My guess is it is based on their business plan.  Work out what costs are then figure out what you can pay suppliers.  SS increased their payout to 25c (from 20c) - you would expect this as overheads get spread over more sales. I think istock hasn't updated theirs as they dont have to but it maybe becasue they spend more on marketing (hence more sales).

« Reply #3 on: November 21, 2006, 11:48 »
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i guess that being part of getty, some info should show up in report to shareholders


 

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