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The only way this could work in favor of IS is that with the price cut people are going to miss their RC targets and the cost reduction on paying less royalties is greater than the loss of revenue due to the price cuts.
They must be losing 40-50% on inde sales.
... they owned the whole industry and let competitors like SS take the lead and steal their buyers one by one.
...7. Think what is other way to bring customers to fair deal for you and our community...
I still see this as a bullish move for iStock.
Quote from: jjneff on June 30, 2013, 10:50I still see this as a bullish move for iStock.To me, it looks like they are drowning in a pool. They are flailing around wildly without any rational thought other than just trying to stay above water. We could jump in to rescue them, but they would just try to push us under to save themselves.
Quote from: borg on June 30, 2013, 13:55...7. Think what is other way to bring customers to fair deal for you and our community...Symbiostock! - 100% royalty
it seems like they're scrambling to create profit growth, and despite evidence that their decisions have seriously handicapped the business, their strategy continues to be sacrificing the well-being of dedicated contributors and image quality = the very things that iStock's success was contingent on. I don't think there's any going back now.
Quote from: Ron on June 30, 2013, 07:51The only way this could work in favor of IS is that with the price cut people are going to miss their RC targets and the cost reduction on paying less royalties is greater than the loss of revenue due to the price cuts. Mathematically impossible. They must be losing 40-50% on inde sales. They only pay a 15-20% in commission. The most they will claw back by cutting levels will be 2 or 3%.The only thing that seems to make any sense at all is that they want to lure buyers back with promises of cheap material, then catapult them up into the Signature or Vetta collections by hiding all the cheaper stuff. But I doubt if it will work since it depends on buyers being very stupid indeed.
Reducing prices now won't be enough to save the business. The tiny royalties currently on offer won't be enough to tempt independent contributors to upload new content. For independent contributors Istock are now just another mid-tier agency. If they want new content they'll need to be offering royalties of 30%+ to to make it worthwhile.
Quote from: SNP on June 30, 2013, 14:16it seems like they're scrambling to create profit growth, and despite evidence that their decisions have seriously handicapped the business, their strategy continues to be sacrificing the well-being of dedicated contributors and image quality = the very things that iStock's success was contingent on. I don't think there's any going back now.Reducing prices now won't be enough to save the business. The tiny royalties currently on offer won't be enough to tempt independent contributors to upload new content. For independent contributors Istock are now just another mid-tier agency. If they want new content they'll need to be offering royalties of 30%+ to to make it worthwhile.
Quote from: gostwyck on June 30, 2013, 14:50Reducing prices now won't be enough to save the business. The tiny royalties currently on offer won't be enough to tempt independent contributors to upload new content. For independent contributors Istock are now just another mid-tier agency. If they want new content they'll need to be offering royalties of 30%+ to to make it worthwhile.exactly
My Mum always says, "It's better to remain silent and be thought a fool than speak and remove all doubt, which is what the previous (male) incumbent did.
You can trace the root of this issue back to the introduction of the RC system in September 2010.
Quote from: gostwyck on June 30, 2013, 14:50You can trace the root of this issue back to the introduction of the RC system in September 2010.That's when I stopped uploading to iStock. I've since noticed my PP sales have been much better than iStock sales so I've started uploading again to take advantage of the relaxed upload limits and get some more files into the PP. However, that doesn't mean I have any confidence in them or trust their credibility.
Quote from: BaldricksTrousers on June 30, 2013, 10:39Quote from: Ron on June 30, 2013, 07:51The only way this could work in favor of IS is that with the price cut people are going to miss their RC targets and the cost reduction on paying less royalties is greater than the loss of revenue due to the price cuts. Mathematically impossible. They must be losing 40-50% on inde sales. They only pay a 15-20% in commission. The most they will claw back by cutting levels will be 2 or 3%.The only thing that seems to make any sense at all is that they want to lure buyers back with promises of cheap material, then catapult them up into the Signature or Vetta collections by hiding all the cheaper stuff. But I doubt if it will work since it depends on buyers being very stupid indeed. But you dont know what % they might gain in sales from new customers or more DLs at that price. If their sales go up significantly, doesnt that work out in their benefit down the line?
iStock is gonna rock you just wait and see :-) I like drinking Kool Aid so come an join me. I am exclusive so yes I want it to rock!
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