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Author Topic: iStock changing royalty structure  (Read 348558 times)

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macrosaur

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« Reply #350 on: September 08, 2010, 15:01 »
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« Reply #351 on: September 08, 2010, 15:05 »
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Here it is:

http://www.istockphoto.com/forum_messages.php?threadid=252322&page=1


Amazing... After 24h and more than 130 pages in their forum they come with the same BS

« Reply #352 on: September 08, 2010, 15:06 »
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IS profits are not growing fast enough - IS is paying out way to much money....

Wuuu Huuuu - I'm crying for them. They just plan rub photographers and shamelessly complain that is not enough . HA!

« Reply #353 on: September 08, 2010, 15:09 »
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Quote
Since roughly 2005 we've been aware of a basic problem with how our business works. As the company grows, the overall percentage we pay out to contributing artists increases. In the most basic terms that means that iStock becomes less profitable with increased success. As a business model, its simply unsustainable: businesses should get more profitable as they grow. This is a long-term problem that needs to be addressed.

That is such crap. They already pay the lowest commission in the industry and now they are trying to convince us that is unsustainable? How . do the other sites stay afloat then? It's just pure greed. They keep trying to sugar coat it and I hope nobody buys it.

« Reply #354 on: September 08, 2010, 15:14 »
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Perhaps the worst part of this is that every year they will raise the redeemed credit amounts required for each level. So for 2011 it's 1,400,000 credits and then maybe 1,800,000 for 2012 and then maybe 2,200,000 for 2013. Just keep on raising it so hardly anyone goes up a level.

Complete garbage.

« Reply #355 on: September 08, 2010, 15:16 »
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At least they're being honest about one thing.  To paraphrase: "You think you're being *removed coarse language*?  That's nothing compared to what we're doing to independents!"

Xalanx

« Reply #356 on: September 08, 2010, 15:18 »
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At least they're being honest about one thing.  To paraphrase: "You think you're being *removed coarse language*?  That's nothing compared to what we're doing to independents!"

indeed

« Reply #357 on: September 08, 2010, 15:24 »
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Not even a sop! And a mea culpa too! Just a bit of corporate crap.

The exclusives are probably getting screwed at least as hard as the independents. And the whole thing is based on the idea that they have not lost customers as a delayed reaction to the price rises at the start of the year, so the last four months will deliver 50% of the annual income, as usual.

This is a "permanent fix" to their lust for cash because it allows them to move the goalposts every year, so there is absolutely no permanence for contributors.

vonkara

« Reply #358 on: September 08, 2010, 15:28 »
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Quote
Since roughly 2005 we've been aware of a basic problem with how our business works. As the company grows, the overall percentage we pay out to contributing artists increases. In the most basic terms that means that iStock becomes less profitable with increased success. As a business model, its simply unsustainable: businesses should get more profitable as they grow. This is a long-term problem that needs to be addressed.

That is such crap. They already pay the lowest commission in the industry and now they are trying to convince us that is unsustainable? How . do the other sites stay afloat then? It's just pure greed. They keep trying to sugar coat it and I hope nobody buys it.

Exactly what I said in the new Istock thread as long as many others. Complete BS, or Istock is very badly managed !!!

« Reply #359 on: September 08, 2010, 15:39 »
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OK so they made their "difficult decisions".  Now make yours.

« Reply #360 on: September 08, 2010, 15:43 »
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OK so they made their "difficult decisions".  Now make yours.

I made my first one: I clicked that Pause Uploads button on DeepMeta.  No more new content for iStock.

But here's a problem.  I can't find any way to deactivate or delete existing images.  Am I missing something?

« Reply #361 on: September 08, 2010, 15:53 »
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I did it.

Exclusivity Cancellation Application
Thank you. Your exclusivity status will be deactivated in 30 days.

helix7

« Reply #362 on: September 08, 2010, 15:59 »
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It is definitely greed, plain and simple. If 40% and 50% royalties are sustainable at other companies, but 20% isn't sustainable at iStock, it's because they are cutting some heavy paychecks at HQ.

So we'll see how it plays out. Maybe it's time for the microstock giant to fall, let some young blood take over for a while.

ShadySue

  • There is a crack in everything
« Reply #363 on: September 08, 2010, 16:01 »
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OK so they made their "difficult decisions".  Now make yours.

I made my first one: I clicked that Pause Uploads button on DeepMeta.  No more new content for iStock.

But here's a problem.  I can't find any way to deactivate or delete existing images.  Am I missing something?
I think you can only deactivate one at a time, which would be a pain with a port as big as yours.
You could contact contributer relations.
(But I'd counsel waiting for a while before making such a drastic more. I'm keeping a watching brief.)

« Reply #364 on: September 08, 2010, 16:07 »
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Today I opened an company account for our ad agency on dreamstime and advised the employees not to use istock anymore. Beyond that I changed the PW of istock to prevent that some of the guys are just following an routine and accidentially buy there.

Off course I stop uploading immediatly.

....lol, on their forums they claim to be independent of Getty....so, congrats! They managed to get so shameless independently and without the influence of an already big and shameless company....well done, istock!

« Reply #365 on: September 08, 2010, 16:08 »
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They've applied the 80:20 formula, haven't they? The 20% of exclusives who make 80% of the money are going to get squeezed (along with all the non-exclusives), while the 80% of exclusives who make 20% are let off. It's a reward for under-achievement (or, at least, for not being good enough to bring yourself the the notice of their accountants).

I'd love to know what the projected profits increase is. Didn't the CEO say a while back that he has been ordered to "grow" the company by 50% this year? I suppose that means "grow" the profits, since growing the business doesn't seem to be the aim.

Fotonaut

« Reply #366 on: September 08, 2010, 16:09 »
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I did it.

Exclusivity Cancellation Application
Thank you. Your exclusivity status will be deactivated in 30 days.


Kudos.

traveler1116

« Reply #367 on: September 08, 2010, 16:16 »
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Can we curse on this site because this f'ng bs.

traveler1116

« Reply #368 on: September 08, 2010, 16:18 »
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I did it.

Exclusivity Cancellation Application
Thank you. Your exclusivity status will be deactivated in 30 days.


Kudos.

I will too as soon as the new changes take place, all future content now that was originally going to be exclusive+ and/or possibly Vetta will be on Alamy now. 

« Reply #369 on: September 08, 2010, 16:24 »
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I did it.

Exclusivity Cancellation Application
Thank you. Your exclusivity status will be deactivated in 30 days.


Kudos.
Congratulations, and welcome to the wonderful world of independents. Enjoy your new freedom.

As for me, as an independent illustrator, IS offers to pay me 15% royalties. What is the economic/business justification for taking 85% commission for a product which IS had no part in creating and which is distributed electronically by an automated system? 85%?

"...The only hope is that in our connected world things change so quickly that a much better alternative for photographers might arise at any given point. The middle man is taking now the largest straw......but for how long ?" Cristian

[edited to add:]
I have removed links to IS from my site (a small thing, but IS got 24 referrals from those links on my site).
« Last Edit: September 08, 2010, 16:35 by michaeldb »

« Reply #370 on: September 08, 2010, 16:24 »
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All this talk about "accepting" or "not accepting" rates makes little sense to me. The only way to reject what they do is to pull your portfolio.

We could have never been there to begin with, but the good results everyone reported even with the mere 20% attracted each of us, so are culprits in having accepted this from the moment we joined IS. That's what I meant. And yes, we can remove our portfolios, and I remember many did from FT and some (I think) from DT.

« Reply #371 on: September 08, 2010, 16:26 »
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I did it.

Exclusivity Cancellation Application
Thank you. Your exclusivity status will be deactivated in 30 days.
A brave move, congratulations. I don't think I would take this decision so fast.

« Reply #372 on: September 08, 2010, 16:27 »
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I will/have stopped uploading to iStock.  Unless the base 20% is restored before 2011, I will probably remove my portfolio.

lisafx

« Reply #373 on: September 08, 2010, 16:27 »
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I did it.

Exclusivity Cancellation Application
Thank you. Your exclusivity status will be deactivated in 30 days.


Congratulations Dan.  You have always had the courage of your convictions.  Admirable :)

« Reply #374 on: September 08, 2010, 16:30 »
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Done. I've removed my entire port. And I feel much better now.


 

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