MicrostockGroup
Agency Based Discussion => iStockPhoto.com => Topic started by: Greg Boiarsky on July 27, 2006, 11:53
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Take a look at this, from www.pdnonline.com. This is interesting news for those photographers who claim that microstock is stealing their business. On the one hand, customers seem to be moving from traditional RF to microstock; on the other, there isn't much overlap in the two markets. It looks like high-end buyers are, by and large, sticking to traditional RF--with some erosion in the traditional RF market.
Getty Images Reports Disappointing RF Sales
July 25, 2006
Getty Images reported second quarter revenues of $204 million Tuesday, falling short of its own forecast and Wall Street expectations. It was the company's second quarter in a row of disappointing revenue results. Getty blamed lower than expected royalty-free stock image sales.
The photo agency also lowered its earnings forecast for the entire year, predicting annual revenues of $820 to $830 million for 2006. Last quarter, it forecast revenues of $830 to $850 million.
In an earnings call with investment analysts, Getty Images CEO Jonathan Klein said the company was experiencing strong growth in every area except one – royalty-free sales in the U.S.
Klein acknowledged that low-cost micropayment stock sites – the largest of which is iStockPhoto, which Getty owns – are affecting royalty-free sales. "It has and will continue to impact some portion of our business," he said.
In what might be considered good news for the company, Klein revealed that there has been no change in the customer overlap of iStockPhoto and Getty Images. The percentage of iStockPhoto customers who are also Getty Images customers remains 8 percent, which is where it stood when Getty acquired the company last year.