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Author Topic: Friday's RC target announcement and iStock's strategy behind it  (Read 68061 times)

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« Reply #250 on: June 07, 2011, 20:15 »
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Anyone just get a reminder email about the targets that links to a page you can't access?

whoa.. and a lot more contributors posting on the forum thread that are pissed off.  not sure if those posts will get to stay or go, but they are all upset.  one ends their post with "shame on istock"  .. I couldn't agree more.

weird! havent contributors settle down like Kelly said last month?


« Reply #251 on: June 07, 2011, 20:55 »
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Hi all,

It seems I struck a nerve at some point with my post in the main RC thread.

I have no agenda but that of fairness and as many of you know I was part of the Vetta Video opt out process. 

I have lost around 33% of my income due to the RC system and while I have worked many many extra hours off and on stock to pay the bills it looks like I might never attain the higher level that I enjoyed by being close to triple diamond.

I have good friendships with many inside and out of iStock and while I respect their positions I have always said what i really believed inside.

I believe iStock as a company had slower growth than projected hence why the RC system was concocted. It is a way of strengthening the core of the company while avoiding raising prices heavily to an already high system of offerings.

Now what did I mean by the contributors are at fault?

Well I believe we are responsible indirectly for the current state of affairs. If we don't fight for our rights it is of no consequence that they will be stripped away one at a time.

This is no master evil plan at work its business at its best. A business will try to extend its profit arm as far and wide as the market and suppliers will let it go. We in our small but vocal pulpits did not generate enough force to redirect the flow of the grab to make it a fair and stable system.

I am actually in awe of how far it has swung towards the company and its owners.  It makes it for a more stable and strong company to weather opposition, competition and economic storms.   It is their job after all to make the company stronger at any cost but it is our job to defend what take we finally get and we have failed dearly at it in what respects to RC.

RC levels is just one implementation of the system and it could be tweaked further to balance it out over time. I want a strong iStock, I want happy management but I also want a contributor base that is proud and doesn't distrust or vilify the company at every turn.

Corporations are not evil, they don't have feelings or empathy, they just see balance sheets that they can better tweak as time moves on. The staff is there and they do have feelings, empathy, love for the craft and good real feelings for contributors, buyers and friends.

I strongly believe that as far as iStock goes; the company people are good and strong minded people which get the bad reputation of being the button pushers and tweakers of our destiny in stock.  They are doing their job with the tools they were handed but that doesn't include the key to the contributor happiness toolbox.

That key can be brought to them by a well organized, respectful and unified voice that starts a dialogue process into getting a fairer system implemented.  It is of prime importance not to create animosity or damage the company but to make our points firm and in a true majority standing behind them.  Its our work and our livelihoods at stake and we can only fight it like good ladies and gents.

The scattered voices that populate the forums wont create that homogenous and clear message but will surely help in creating a voice when the time calls for it in a group creating a whole.

In the end we would desire to get a strong company attached to strong contributor values of compensation and clarity. Their strength is an asset to us the same as our continued support and artwork is the main resource that runs their engines.  Only dialogue can get there and only a clear voice will have a chance to be heard and listened too.

No side should feel punished or damaged in the end, we are a single shining entity with different systems but with third rate communications system. Our mutual benefit will make the whole stronger.

Sincerely,

James Benet

« Reply #252 on: June 07, 2011, 21:32 »
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Snip

I believe iStock as a company had slower growth than projected hence why the RC system was concocted. It is a way of strengthening the core of the company while avoiding raising prices heavily to an already high system of offerings.

Snip


I am actually in awe of how far it has swung towards the company and its owners.  It makes it for a more stable and strong company to weather opposition, competition and economic storms.   It is their job after all to make the company stronger at any cost but it is our job to defend what take we finally get and we have failed dearly at it in what respects to RC.



Welcome and thanks for posting!

I do disagree with your conclusion however on the motivation for the RC system.  Don't know if you've seen this, but H&F basically sold/mortgaged Getty last fall.  They could not find a buyer or pull off an IPO so "Hellman & Friedman is paying itself $500 million after borrowing $1.3 billion for portfolio company Getty Images."
http://blogs.reuters.com/columns/2010/11/03/short-memories-finance-private-equity-payouts-2

If Getty fails to pay it off, the creditors get the company while H&F get to keep their $500 million.  To prevent a default Getty needs to generate lots of cash and I believe the RC system was imposed to boost that cash flow.  The RC system will not make Istock stronger/better, in fact I would say that the debt load has made it less likely that Getty and Istock can weather opposition, competition and economic storms.

helix7

« Reply #253 on: June 07, 2011, 22:11 »
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...That key can be brought to them by a well organized, respectful and unified voice that starts a dialogue process into getting a fairer system implemented.  It is of prime importance not to create animosity or damage the company but to make our points firm and in a true majority standing behind them.  Its our work and our livelihoods at stake and we can only fight it like good ladies and gents...

Hi James, thanks for posting this long and well-thought-out reply.

I wish I could share your optimism, but unfortunately I think we are past the point of being able to affect any positive change at istock. To get a more fair system implemented, we'd basically be asking Getty and the investors to start hating money. I'm sure it stung a bit when the folks at HQ had to push the RC system into place and cut the pay of the majority of istock artists. No one would want to do that. But now that it's done, reversing it or changing it to tip the scales back in our favor even in the smallest amount would be a very tough thing for HQ to sell to the bosses at Getty. Maybe I'm just a bit too pessimistic, but in my opinion the RC system is here to stay, and there's nothing that anyone can do about it. And my opinion seems even more plausible after the recent RC target announcement and the increase in targets for photographers. They'll never go back, and if anything the future holds more pay cuts due to increasingly difficult to reach RC goals.

...No side should feel punished or damaged in the end, we are a single shining entity with different systems but with third rate communications system. Our mutual benefit will make the whole stronger...

I don't believe that a stronger istock is good for anyone at this point. In fact, I'd suggest that a stronger independent spirit in microstock is more mutually beneficial to the majority. istock is not the best company in the business any more, and they certainly do not represent the best interests of buyers or artists these days. Prices are extending too high, royalties too low, and in general the company operating with far too much self-interest in mind. There are companies that are better earners for contributors, pay fair royalty rates, and offer a better buying experience to customers. I think that rather than wasting time trying to open a dialogue with istock, we're better off throwing our support behind companies that get it.

Of course I know that's not what exclusives want to hear, and if any exclusive artists intend to remain exclusively with istock then they have little choice other than to try and improve their situation there and hope that they can get a conversation going. But I'm not exclusive, I don't rely on istock for my income, and frankly I don't care about istock becoming a stronger company or creating a dialogue with a company that doesn't care about me and has no interest in talking to me. My istock earnings will probably drop into the single-digit percentages in the coming months in terms of how much of my total microstock income they represent. And while I hate to see my income drop at any of the companies I work with, I can't invest any more time or energy into being concerned about istock and where things are headed there.

I think that my personal benefit as well as the mutual benefit of the microstock industry is rooted in the growth of companies other than istock. I'm not interested in fighting for anything at istock. I'll share my thoughts in the forums on changes they make and the direction the company is headed in, since i still do have a small stake in the success or failure of the company. But I don't see any reason to join in with any community voice and try to affect any positive change at istock.

« Reply #254 on: June 08, 2011, 00:36 »
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Istock wont get stronger by crushing its suppliers.  Just look how well their main rival, SS, is doing now.  It might of worked if istock was the only place to sell images but it isn't.  There's also the fact that a lot of suppliers don't rely on their income from istock.  All the changes they have made are going to lose them their dominant position in the market and there's really no way to stop the slide when the momentum starts.

I wish we had made a stand and not put up with the commission cuts but it looks like istock is on the slide anyway and they are continuing to make bad decisions that are just going to send more people to the other sites.

« Reply #255 on: June 08, 2011, 00:46 »
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I have to agree with Helix. There really isn't much to say or do at this point and there never was a negotiating table. I've done the only thing I could by voicing my displeasure and limiting my images there. The last step would be to leave. There's still many things that I like about iStock, but I don't see much chance of a resolution. For the most part, I've moved on. I have to do what is best for me.

« Reply #256 on: June 08, 2011, 00:51 »
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@James Benet. It's clear that you strongly believe what you write, and I don't see any animosity in it. However I think you're wrong in both the analysis of why the changes at iStock have been made and also what, if anything, could change them.

You can read more about dividend recapitalization in the links in this post.

Beyond H&F's need for cash, you can look at Getty's recent track record with Pump Audio - cutting royalties from 50% to 35% with a letter saying that they needed the money for marketing - as well as the contract changes earlier this year telling contributors they could leave if they didn't like it. Folks who've been around longer than I have tell tales of similar actions with all the other Getty acquisitions along the way.

The people in Calgary can't really do anything about Getty directives except follow them or quit. Has nothing to do with whether they're nice guys or not. The fact that there is a trail of broken promises - including inducing people to become exclusive with a promise of grandfathered cannisters which they then abandoned last September - doesn't help anyone's credibility, whoever was behind things.

And as far as single minded predatory behavior being an inherent part of modern business, it's a big topic, but suffice it to say that I don't agree that it (a) inevitable or (b) long term sustainable, but I will grant you that it's very common at the moment and can look like success in the short term.

I've made my choice to resume being independent and let iStock sink or swim - obviously I hope it stays afloat long enough for me to re-establish myself elsewhere. If it swims, then that's great as it's another source of sales.

I really believe that iStock could have grown and thrived in a different fashion from the way Getty/H&F have chosen - I wouldn't have become exclusive otherwise. My take on all the recent changes is that they're not about long term anything - growth or sustainability. It's all about cash now, and if the business isn't growing fast enough then you take it from contributors.

lagereek

« Reply #257 on: June 08, 2011, 01:24 »
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So true its almost unbelieavable.

« Reply #258 on: June 08, 2011, 02:00 »
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it's the obvious conclusion of digital photography, internet uploads, adsl, and oversupply combined, we  all knew we would have reached the rock bottom before or later.

PaulieWalnuts

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« Reply #259 on: June 08, 2011, 06:21 »
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@jamesbenet - I'd agree to some extent with what you're saying. It's a business.

This is about leverage. Any smart business that has leverage to maximize revenue and profits will do so. Contributors today have very little leverage over agencies. Oversupply, lack of options, etc. Currently Istock can push contributor changes it whatever direction it wants.

Companies that don't have leverage provide incentives. Like Thinkstock where they increased commissions due to widespread contributor pushback and lack of interest in submitting images.

So until the balance shifts, the leverage will continue to be in the hands of the agencies.

Our main options are to navigate the changes, complain, or quit.

traveler1116

« Reply #260 on: June 08, 2011, 08:12 »
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it's the obvious conclusion of digital photography, internet uploads, adsl, and oversupply combined, we  all knew we would have reached the rock bottom before or later.
I don't think that's what's going on, someone is making a ton of money off our images.  There is enough demand to support better pay, maybe your conclusion will come true in the next ten years but we aren't there yet.

lisafx

« Reply #261 on: June 08, 2011, 09:12 »
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Thanks for posting James.  I misinterpreted your initial post as being yet another of the "blame the victim" ones we see on Istock.  Knowing you as a thoughtful and intelligent person, I should have realized my mistake.  

Thanks for coming in and clarifying, and apologies from me for having missed the point initially.  

As I told you via e-mail, I am 100% onboard with any workable idea for contributors addressing this situation, although I agree with Mike that it may be futile. 

The type of association I have always wanted to see in microstock would be one that was not specific to one agency.  Something like the Stock Artists Alliance tried to be for macro stock.  I still do not think it is a coincidence that Getty rm artists being forced to sell microstock at TS came within a week or so of SAA closing its doors. 
« Last Edit: June 08, 2011, 09:21 by lisafx »

« Reply #262 on: June 08, 2011, 18:10 »
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I love the depth of the responses and have learned a lot more from them. 

I still believe change is possible, it may come in small steps but clearly if nothing is done things will continue to deteriorate without any real solutions for the future.

There will probably be consolidation of many stock sites as time goes on, the plethora of sites, most offering close to the same thing can only create synergy in the end or disappear in ashes as oversupply cant feed the demand.

SAA, "Thanks Lisa" is a sad case of too little and obtuse thinking which alienated a huge chunk of an evolving industry. They had good values but applied them to a very limited scope of artists.

If a new "Alliance" is formed it should be one that unites all micro and macro stock with no boundaries of amateur and professionalism.  It should also be based on crowd-sourcing and the power of the artists. 

I would love to hear your ideas and what can be done to create something that creates a voice while at the same time try to preserve the strength and solidity of the companies themselves and our relationship with them.  It should be a symbiotic mutually beneficial relationship and not a war of constant fear, empty promises and weak retaliation.  Unity will help us move forward.

lagereek

« Reply #263 on: June 08, 2011, 23:42 »
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Hi James!  are you the same JB, that like myself came from Stones into Getty, in 93?

Anyway, what you are saying is probably right now everyones wish, exclusive or independant, working together in some sort of harmony instead of this constant battle and uphill struggle in limbo and uncertainty.
I would be more then glad to join in some sort of friendly "voice", trying to make a better industry, this "shot-gun" tactics are totally derrogative and doesnt lead anywhere.
Getty is a mighty foe!  would be a lot healthier to have them with us, working alongside with them. All of us, agency and contributor would benefit far more and all it would take is a simple mutual understanding.

« Reply #264 on: June 09, 2011, 01:21 »
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We have been talking about some sort of "Alliance" for years now.  The problem is, nothing ever happens.  I can understand that we are all too busy to set this up but we really do need someone to do it or all this talk is a waste of time.

« Reply #265 on: June 09, 2011, 03:35 »
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The problem is, most realize, or think, that such an alliance really would have no "power".  It isn't like a union where stopping work for a few days accomplishes something.  The stuff is still there to sell.

Slovenian

« Reply #266 on: June 09, 2011, 04:02 »
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The problem is, most realize, or think, that such an alliance really would have no "power".  It isn't like a union where stopping work for a few days accomplishes something.  The stuff is still there to sell.

You can deactivate files

« Reply #267 on: June 09, 2011, 04:13 »
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The problem is, most realize, or think, that such an alliance really would have no "power".  It isn't like a union where stopping work for a few days accomplishes something.  The stuff is still there to sell.

You can deactivate files

I'm only deactivating files the day I quit IS.  So, that's not any sort of reasonable short term protest thing.

« Reply #268 on: June 09, 2011, 04:22 »
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The problem is, most realize, or think, that such an alliance really would have no "power".  It isn't like a union where stopping work for a few days accomplishes something.  The stuff is still there to sell.

You can deactivate files

I'm only deactivating files the day I quit IS.  So, that's not any sort of reasonable short term protest thing.

Why not ? That is the only weapon one has.  If you your self do it, it wont have much of an effect (well in your case maybe a little) if hundreds do, it will.

« Reply #269 on: June 09, 2011, 04:26 »
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Sean is right (again lol) we may want to have better royalties for our work but it is almost impossible to fight that.. they have the fork and the cheese (portuguese expression I guess) so not easy, it is just like other industry when there is a lot of supply and perhaps demand is not increasing on the same way but thats another question

Slovenian

« Reply #270 on: June 09, 2011, 04:35 »
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Sean is right (again lol) we may want to have better royalties for our work but it is almost impossible to fight that.. they have the fork and the cheese (portuguese expression I guess) so not easy, it is just like other industry when there is a lot of supply and perhaps demand is not increasing on the same way but thats another question

I don't see any logic in that. Deactivating files is the same as stopping work, as Sean said. The only difference is you won't get paid for those few days (like workers still get), but you have to sacrifice something for the greater, long term good (it'll return for you, not just return, you'll profit in the long run, a lot). And the ones who could make the difference are the top players like Sean, if top 25 contributors at IS would do that it would make a huge difference in IS sales. And they could afford it too, they made so much money anyway that they could leave off of it (and the interest) for the rest of their lives. They're just doing it for fun anyway or because they want to buy themselves a new yacht or an island ;)

« Reply #271 on: June 09, 2011, 04:43 »
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Sean is right (again lol) we may want to have better royalties for our work but it is almost impossible to fight that.. they have the fork and the cheese (portuguese expression I guess) so not easy, it is just like other industry when there is a lot of supply and perhaps demand is not increasing on the same way but thats another question

I don't see any logic in that. Deactivating files is the same as stopping work, as Sean said. The only difference is you won't get paid for those few days (like workers still get), but you have to sacrifice something for the greater, long term good (it'll return for you, not just return, you'll profit in the long run, a lot). And the ones who could make the difference are the top players like Sean, if top 25 contributors at IS would do that it would make a huge difference in IS sales. And they could afford it too, they made so much money anyway that they could leave off of it (and the interest) for the rest of their lives. They're just doing it for fun anyway or because they want to buy themselves a new yacht or an island ;)

It's not at all the same as stopping work from the auto factory or whatever.  If you deactivate files, who is to say if it is resubmitted, it will ever be as successful?  A site is not likely to blindly reinstate files deactivated this way.  If they wanted you messing with it, they would have put it a button that says "Temporarily put on hold", like I have on my netflix account.

Yeah, fun... :)

« Reply #272 on: June 09, 2011, 04:46 »
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you are going a little OT eheh

so do you believe if the top 25 stop uploading they would increase our royalties? do you really think IS need more pictures? I dont believe an agency need more pictures but they keep on approving and we keep on doing them, some pretty like they are already online, some quite different but overall I dont believe it is changing the "collection" that agencies have already, it is actually just taking money from other contributors and perhaps we are collecting a little more entering slowwwwwly their "pictures".. stock is a weird business that seems that will need be "full", it is like a woman that is never satisfied but in the end keep on screwing us

« Reply #273 on: June 09, 2011, 04:58 »
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The problem is, most realize, or think, that such an alliance really would have no "power".  It isn't like a union where stopping work for a few days accomplishes something.  The stuff is still there to sell.
I agree but there might be some positive things we could do to promote sites that pay a fair commission and have good prices for buyers.  I know that might not interest istock exclusives.

« Reply #274 on: June 09, 2011, 05:05 »
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The problem is, most realize, or think, that such an alliance really would have no "power".  It isn't like a union where stopping work for a few days accomplishes something.  The stuff is still there to sell.
I agree but there might be some positive things we could do to promote sites that pay a fair commission and have good prices for buyers.  I know that might not interest istock exclusives.

yes that might be the solution.. on top agencies which arent fair? IS, Fotolia? Dreamstime maybe not because of their levels system (but I do have tons of subs..)

top contributors are the most important guys in this industry.. if they dont do anything there is no need of "us" to do or it will only help their income..

Fotolia wasnt as greedy as IS.. at least from emerald and up royalties werent cut.. how many are there?

Fotolia went from 30% to 20% in two years, cant wait for 2012
« Last Edit: June 09, 2011, 05:17 by luissantos84 »


 

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