Thursday, April 30, 2009

Is The Amateur Really A Threat to the Pro?

Consider the photographer who has an unlimited amount of time to accomplish an image. Or, the student, who has a week or two to complete an assignment on, say, lighting a bowl of fruit. Or, the hobbyist photographer, who stumbles upon a great image. Are these photographers a threat to the photographer who works on assignment?

(Continued after the Jump)

I submit that they are not, in almost all cases. Judy Hermann, over at the ASMP Strictly Business blog wrote a few days ago - A Walk in Your Client's Shoes - and noted, in part, "If it was your job on the line, what would you need to see, what would you need to hear, what would you need to know to feel safe hiring a particular photographer?"

A track record of success is one of the key elements that a prospective client is looking for. Sometimes, a client is looking for multiple jobs for the same client in a portfolio over a period of time - say, a campaign. This suggests continuity and consistency that they can depend upon. Sometimes, a client will see your coverage of a significant event, and determine that if you were hired (i.e. depended upon) to cover *that* event for someone, surely you could cover X event that your prospective client needs you for. And sometimes, not seeing just sample work on a website, but clips and covers is a demonstration that you can deliver on time and with a high degree of certainty.

When you are a student, you might shoot the assignment three or four times, realizing you missed a critical issue each time, and then, finally got it right. The hobbyist photographer can take thousands of images of the sunset, their kids, and so on and, based upon the laws of statistics, eventually get an amazing shot. Sometimes, they simultaneously stumble into *how* to make that image, and thus repeat it. Usually, however, they don't. Einstein once famously said "The definition of insanity is doing the same thing over and over again and expecting different results.”

No one has to say "he's a professional accountant", or, "she's a professional doctor." Merriam-Webster sets forth the use of the word "professional" - "participating for gain or livelihood in an activity or field of endeavor often engaged in by amateurs {a professional golfer}", thus, "professional photographer" needs the modifier "professional" in front of it. As does "professional surfer", "professional volleyball player," and, yes "professional bass fisherman."

Journalist Samuel Friedman wrote, in the CBS News piece - Outside Voices: Samuel Freedman On The Difference Between The Amateur And The Pro:
To treat an amateur as equally credible as a professional, to congratulate the wannabe with the title “journalist,” is only to further erode the line between raw material and finished product. For those people who believe that editorial gate-keeping is a form of censorship, if not mind control, then I suppose the absence of any mediating intelligence is considered a good thing.
Rob Haggart, over at A Photo Editor, defined professional by quoting a Mario Batali, in writing that the difference between an "amazing amateur chef and a professional chef is the ability to make that perfect meal 100 times in a row." Thus, the counter to Einstein's insanity definition, is the definition of "professional" that I will put forth here. The definition of professional is "doing the same thing over and over again and expecting similar results."

How many times a month can a magazines' photo editor commission an assignment and get nothing usable back before their job is on the line? Once? Twice? If twice every other month a shoot was unusable, their judgement would be called into question and in short order they would lose their job. How about the advertising job, where the photographer can't deliver while the ad agency rep and their client are both on set, and the shoot fizzles because of the photographers' inability to deliver?

The challenge for the photo editor, art buyer, and so on, is to separate the wheat from the chaff, the professional who can deliver, from the amateur who has a nice portfolio, but can't be counted on with a high degree of certainty to produce. The problem arises, when the prospective client is not comparing apples to apples, but the professional and the amateur, as if they are interchangeable. It's one thing when the art buyer is looking at a stock image - it either is good enough, or it's not. It either meets their needs, or it doesn't.

However, when it comes to assigning work, commissioning it, or otherwise asking for images of non-repeating, or not-re-shootable work, getting a professional who can deliver, means the amateur will lose out. When the amateur doesn't lose out, a risk greater than gambling in Las Vegas is undertaken, and the commissioning party is betting their job. Over time, those who fail to discern the differences between the amateur and the professional, become the chaff to their "wheaty" brethren who survive in their field.

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Wednesday, April 29, 2009

I Do Solemnly Swear: Photographs of the 2009 Inauguration

Wednesday, April 29th, is a pretty cool day. It's the day that the Smithsonian opens their exhibit - I Do Solemnly Swear: Photographs of the 2009 Inauguration - featuring the photography produced for the official inaugural book. The Smithsonian touts the exhibit thusly:

This exhibition features approximately 50 framed color and black-and-white photographs printed by Kodak, highlighting the week-long events surrounding the historic Presidential Inauguration of Barack Obama. Included in the exhibition are photographs by both professional and amateur photographers who recorded events surrounding the peaceful American transfer of power. The photographs on view include selections from the National Museum of American History's new acquisition of 2009 inaugural photographs by leading photojournalists, including David Hume Kennerly, Bob McNeely and Karen Ballard.

The full list of photographers who participated in the book is:

(Continued after the Jump)



David Hume Kennerly - Producer and Photographer
Bob McNeely - Producer and PhotographerMatthew Naythons - Producer and Photographer
Thomas K. Walker - Creative Director and PhotographerKaren Ballard - PhotographerAndre Chung - Photographer
Daniel Cima - PhotographerAnne Day - PhotographerHector Emanuel - Photographer

John Francis Ficara - Photographer
Gil Garcetti - PhotographerJohn Harrington - Photographer
Sam Kittner - PhotographerPete Marovich - PhotographerGreg Mathieson - Photographer
Paul Morse - PhotographerDaniel Rosenbaum - Photographer
Mark Sennet - Photographer
Pete Souza - PhotographerBruce Talamon - PhotographerClarence Williams - Photographer

The exhibit opens today, Wednesday, and runs through July 12th, 2009. One name you might note up there is yours truly, and it was an honor to be a part of the team.

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Tuesday, April 28, 2009

Lotsa Little Things Are Actually Really Big Deals

While we have been swamped to the far ends of our bandwidth here at Photo Business News, lots has been happening. Just because we've not been commenting daily, does not mean we haven't been paying attention.

The magazine world is turning upside down. Video is becoming stills, and ad revenues are slashing frequencies of publication. While it's cool to see Esquire innovating like that, we predicted the Red Camera would do just this just over a year ago - One more nail in the coffin (3/18/07), with sports being in the cross-hairs. Now that a COVER was done, doing inside pieces are now demonstrably a piece of cake, and events (yes, that means sports, for sure) that are regularly covered by TV will find red cameras being used to allow for you to be able to choose the best moment in time.

The world of Search Engine Optimization has, for photographers, exploded. Previously, SEO was limited to people who just knew how to optimize websites. liveBooks has made white-hat SEO a cornerstone of their website offering, and they are, by far and away, the best of the photographer-centric website providers to do SEO. Blake Discher has been traveling the country for ASMP for some time, doing his presentation - Is Your Web Site Making You Money?, and recently, PhotoShelter threw the doors wide open, with a Free SEO Toolkit, took on website designers when it comes to SEO, in their piece - Is Your Web Designer Full of Crap?, taked about the importance of page titles, and even went into the importance of URL legibility, in Make Your URL's Like Your Photos: Beautiful. If people actually read what they were writing, and actually acted upon the information, they would be kicking ass and taking names on website positioning on Google. Now, Seth Resnick, who is probably just as insane when it comes to web optimization and SEO as I am, has jumped (back) into the game, with a program at the end of next month through his seminar on search engine optimization in Miami. Seth has been doing SEO as long as I have, and he knows his stuff. The key to learning from him is to figure out a way to shift his speeding-Ferrari mind down to like first gear with the clutch not fully engaged so that you can understand what he's talking about. If you go, bring a tape recorder, because you'll learn about 10% while listening to him live, and 10% more the next time you listen, and so on. Seth comprehends SEO like few other people I know.

Meanwhile, the good folks (and an advertiser here at PBN) have just released FotoQuote Pro version 6, that include 86 New Pricing Categories, including 35 Video Stock Footage Categories, and over 30 Dedicated Web Usages as well. If you know these folks, they're the real deal and they know what they're talking about when it comes to pricing, and the coach feature for each usage is really really insightful.

(Comments, if any, after the Jump)


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Thursday, April 23, 2009

Price Negotiations

If you consider that anyone who is trying to lower the price you are asking is an "enemy", then, the old adage that applies is "know thy enemy."

I am not talking here about people who have not clearly spelled out an assignment, and you are thusly over-estimating it, or people who are trying to work you into their budget, but instead, I am talking about people who are looking to cut your fees to keep money in their pockets. While I don't see clients as enemies at all, I do need to understand their perspective when estimating a job, and also, have them understand mine. Knowing what a client is thinking is helpful in coming to a satisfactory solution for everyone.

But let's get one thing straight - people who price shop will always want a lower price, and studies have shown are far less loyal to you, and far more loyal to the bottom line.

(Continued after the Jump)

Over at The Consumerist, today's piece is titled "Do You Haggle", and they outline the perspective of the person doing the negotiating. So, I thought I'd do a counter to that (what they wrote is in italics), from the sellers' standpoint:
1. Never ever let the salesperson take over your shopping experience when you're buying expensive items, or when the store offers a certain discount. You must control the bargaining process.
Often a client does not know what goes into that price. A shoot fee, and then licensing? 'I thought I owned it', or 'what is this post-production charge, what do you need to do to the photos, I thought you didn't have to fix your photos?" These, and many others, are a part of educating the client on the value your images have.
2. Know that the posted price for a big ticket item can be brought down. This is especially the case now, in these difficult times.
Yes, you may be willing to negotiate in these tough times, but if your rate is $2,500 for an assignment, and you accept $1,800, it is likely you'll never get that $2,500 figure from that client when times improve. Be sure to "take away" something from the shoot. Say, shooting fewer images/set-ups, using a single person for hair and makeup/stylist, or limiting the rights package a bit more.
3. Never ever let them know that you really want something.
This is the true power of "no." When you tell the propective client, in a nice way, that you can't do it, if they really want you, they'll now want you more. If they see you as a commodity, then they may move on. So be it. You want clients that really want you.
4. Force yourself to leave if the merchant doesn't give you a lower price.
The contrary to this is "stick to your price. Thank the client for considering you, and tell them that you look forward to the opportunity to work together in the future, when price and budget are not such an issue. Further, let them know that if something goes wrong with the lower-priced photographer, you'll try to help them out with a re-shoot, if you can."
5. Remember, you are the client, you have money in your checking account which the seller desperately wants.
Yes, they are the client, and they called you. When you as the photographer are, in fact, desperate, you will do foolish things, so don't ever be, or even come across as, desperate. When the propective client becomes the client (i.e. has signed the contract) then, of course, do everything you can to make them happy.

REMEMBER: photography, no matter what anyone tries to tell you, is NOT a commodity.

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Wednesday, April 22, 2009

Your Piece of the Pie

Is it slow for you right now? If so, locating other avenues for revenue (within the field of photography, of course!) may be your next best solution.

Here in Washington, the area is buzzing with the notion that President Obama is making healthcare a major priority. Why? Well, it's not really because those folks want healthcare in this manner, but rather, because of all the opportunities that that new idea will bring to them. Healthcare automation, management, consultants, and so on. The list really does go on and on.

What does this mean for you?

(Continued after the Jump)

If there are healthcare providers in the area, this could mean more assignment work for you, and positioning yourself with those providers could mean near future work.

Today, is, of course, Earth Day, and just for the fun of it, we've "greened" the blog. But, could you position yourself to serve the "greening community"?

What about pursuing companies that are involved in the electric vehicles that are ramping up to be built? Parts suppliers? The conversion of gas stations to begin offering electric or hydrogen services?

Are there recyclers in your area that are growing their businesses, looking for new (or refreshed) marketing materials? Do they even know they need it?

On the flipside, if you are working with clients in the defense industry, you might want to revisit your diversification plans, since the President has also indicated a plan to scale those expenses back, and just yeserday the President instructed his cabinet to slash $100 million from their budgets, so if you are earning revenue from those avenues, that's a bit of a potential problem too.

There are plenty of avenues for revenue aside from the ones familiar to you. The key is to be thinking several steps ahead, and as trends change, you want to be on the front end of those changes and prepared for them.

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Friday, April 17, 2009

Lifetime Revenue Streams

Rob Haggert, over at A Photo Editor, has a great article up, entitled "Why Would You Quit Working with a Freelancer", that I posted a lengthy comment on, and the thread and comments are well worth a read. That said, what I wrote is a good standalone piece, so I've re-edited it, and am posting the thoughts here as well, since several projects have kept me tied up these past two weeks and have precluded me from having the bandwidth to write much of late.

So, enjoy, and I hope you make it over to Rob's blog to read more.

(Continued after the Jump)

There is an expectation is that our success rate must be greater than that of a surgeon in order to remain in business. There is no margin for error, even though a life is not on the line, just a blank space on a page in a publication.

I strive to meet - and exceed - client expectations, whether it is an editorial client or a corporate client. Often the "one for thee, one for me" approach caused the "one for me" to be the better image that the client used, even though it was not the assignment. Note - the "one for thee" comes first, then you can experiment.

Doug Menuez's recounting of the Business Week panel comments also is spot on. A photo editor only gets so many "the shoot didn't turn out" excuses before their judgement about what makes a good photographer gets called into question, and they are soon sidelined, or let go.

What makes a good photographer, first, and foremost, from a clients' perspective is one that can produce AN image, on time, and for the agreed upon budget. When that image meets basic quality standards, they might get a call again. When that image is better than average, they float to the top of the call sheet, and when that image is exceptional, they not only are the first to get calls all the time, they get flown around because there is significant value in a guarantee (or as close as you can get to one) of a great image regardless of the circumstances you throw at the photographer.

Case in point - I have one editorial client who is always calling me to make images that are a huge challenge. Small cubicles, mini offices with no decor and white walls, people in basement office space, and so on - you get the idea. Often they are cover images, but sometimes, inside ones. Every so often, I kid her and say "geez, when am I going to get an easy assignment", and her response is usually something akin to "I give you the hard ones because I know I will get good photos...", and while I certainly appreciate the vote of confidence, sometimes I think I might just like to walk in and knock it out, but, in the end, pushing those limits, and creating a silk purse out of a sows' ear is appreciated by this photo editor, and, in the end, keeps me working.

One of the messages I try to convey to colleagues is the lost revenue stick (carrot?) regarding a lost assignment:

1) You spend a great deal of effort making a prospective client aware of your work

2) You convince a prospective client to hire you for an assignment

3) You do a great job, and earn $2k for the shoot

4) Client calls you next month. you earn $1,500k or $2,500k on that job.

5) Over the life of this ONE client, you can earn tens of thousands of dollars, just from one consistently satisfied client.

6) One consistently satisfied client will recommend you to several other people over the course of their career, thus, one client can be the root cause of upwards of $100k in revenue, over your photographic career.

Now, if I told you that any given job that you would do for that client would cause that client to (at first) think twice about hiring you or (after a second screw up) not hire you, and thus, that single $2k assignment wasn't actually a $2k assignment, but rather a $100k lifetime revenue stream, how seriously would you take the assignment? Would you take extra cameras and lighting equipment "just in case"? Would you have a backup laptop? How many safeguards would you put in place to ensure that each and EVERY assignment went off without a hitch?


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Wednesday, April 15, 2009

The Associated Press and the NFL

It's official. The NFL sent out a message to the 32 club owners' Public Relations Departments, announcing the change. A particularly interesting passage from the memo that went out reads:

In addition to covering every NFL game and numerous other NFL events, AP will provide the league and its 32 clubs with full use of all AP NFL photos for editorial, marketing, and charitable use free of charge. AP also will coordinate the annual team headshot process.

Clubs will need to credential AP in a manner similar to Getty in years past.

So, AP will be getting more, (and presumably better) credentials, no doubt. This will give them (potentially) better access and a leg up on competition with Reuters, Agence France Presse, and so on. But, at what price? How much editorial integrity will be sacrificed by the AP in exchange for this commercial deal?

As we noted previously (NFL and the Wayward Getty Images, 4/9/09) , the AP carried images of the NBA brawl, but Getty's site, which originally had similar coverage up, were instructed (asked?) to remove them by the NBA. How will the future "black eyes" on the NFL be covered by the (now supposedly?) independent press that is the AP? The next "Michael Vick incident"? Another "wardrobe malfunction?" And what will happen to the AP guarantees if the players get locked out in two years for contractual reasons?

There is a lot to ponder in this new deal, and I surely expect much more to come. The full memo is after the jump, less the redacted e-mails and names.
(Continued after the Jump)

MEMORANDUM


TO: Club Public Relations Directors, Club Internet Directors

FROM: XXXXX, XXXXX

DATE: April 15, 2009

SUBJECT: NFL / Associated Press Agreement

We are pleased to report that the NFL has entered into an exclusive new commercial licensing agreement with The Associated Press for all NFL photos. Beginning this month and continuing through at least the 2011 season, AP will provide the services previously handled by Getty Images.

AP will serve as the NFL’s exclusive commercial photo distributor – the only entity authorized to sell NFL photos to NFL business partners and licensees. AP also will have the exclusive right to license NFL-owned historical photos for commercial use. AP is also willing to manage and license images owned by individual photographers, but it will be the decision of the individual photographer who owns the copyright on whether to work with AP. (AP will continue to license NFL editorial photos non-exclusively as it has in the past).

In addition to covering every NFL game and numerous other NFL events, AP will provide the league and its 32 clubs with full use of all AP NFL photos for editorial, marketing, and charitable use free of charge. AP also will coordinate the annual team headshot process.

Clubs will need to credential AP in a manner similar to Getty in years past. A recommendation with regard to specific numbers will be communicated in the months ahead.

The AP is one of the preeminent global news gathering organizations in the world and we believe that the services provided to clubs and the league will be outstanding. We appreciate the work that Getty did these last five seasons and we are confident that AP will service the clubs in a first-class manner going forward.

You will receive an e-mail shortly from AP with login information for its web site where you will be able to download photos. The e-mail will include instructions you can send to other members of your staff that also require access to AP’s web site.
We will follow up with Public Relations directors in the days ahead to provide additional information regarding specifications for headshots (the process will be similar to the one used in previous years).

To the extent that your team photographer is currently a Getty contributing photographer or if you receive questions from other contributing photographers, please have them contact XXXXX at AP (XXXXX@ap.org) for information about becoming an AP contributing photographer.

If you have any questions, please contact XXXXXXXX (PR), XXXXXXXX (Digital Media), or XXXXXX (AP –XXXXXX@ap.org).


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Thursday, April 9, 2009

NFL and the Wayward Getty Images

Getty images has made what can only be a colossal blunder in losing the NFL's commercial licensing deal to the Associated Press. Sources close to both parties reveal that this is a done deal, minus official announcements, Photo Business News has learned. As an interesting side note, it is unclear how the AP would have noted in their annual meeting in San Diego recently that the deal is done, prior to the NFL actually announcing it.

So, what does this portend for the actual people making images under Getty's contract?

The problem is multi-fold.

  • Getty loses what amounts to the cash cow with a large portion of all their commercial sports sales, according to sources.
  • Getty loses what is seen by many as their most prestigious sports relationship
  • Getty likely loses what is arguably the most prestigious group of sports photographers to the AP
  • Getty could find themselves in legal trouble if they preclude "their photographers" (that is, contractors) from doing other work for another media organization, forcing photographers to choose between leagues.
(Continued after the Jump)

Getty's Commercial Cash Cow

With the stock licensing image revenue streams in freefall, commercial sales have remained profitable for photographers, especially Getty. The deal that was in place is an estimated guarantee of $400,000 in revenue to the NFL, and one rumor has the guarantee of revenue from their new partner, the AP, in the $700k-$800k range, and possibly $1m or more.

Further, one photographer we spoke with who migrated from Wire Image to Getty reported to us that in addition to being staff, he also earned a percentage of sales as well. Another source reports that this is one carrot that has kept select Getty staff photographers happy, so this could also mean a huge slash in revenue for Getty photographers that "stay behind" and don't follow the NFL deal.

The NFL, likely frustrated with seeing Getty paying upwards of $200M to acquire Wire Image, wanted a piece of that figure, according to some, relative to seeing a paltry sub-million-dollar figure being paid/guaranteed, so when the contract came back up for renewal, even in this troubling economy, it was the NFL's turn to exact a more lucrative deal.

Another issue, is the ill-conceived premium access revenue model Getty began pushing recently, which has further eroded photographer's editorial revenue streams in the last 6 months, and will likely cause even lower sales figures in the coming months.

Lastly, this deal was worth millions in revenue, not just to Getty, but also a great deal for the NFL (from revenue to servicing their corporate partners), and was a decent source of revenue to those staffers and contributors partaking in resales percentages, and an even larger portion of revenue to contributors. With $4m-$5m in gross sales from the editorial and commercial sales combined, this should have been a lot of money, but perhaps, to a company focused on a breakup, not so much?

Getty Loses Prestigious Business Relationship

Arguably, the NFL was Getty's crown jewel in their sports photography division. All other sports leagues have followed the NFL's lead on everything from merchandising to television rights deals, and so on. The NFL deal not only solidified Getty's place as the sports imaging leader, but as noted above, was their main sports cash source as well. Getting this deal for Getty (via the Wire Image acqusition) was akin to the billion-dollar deal the the NFL signed with Fox and CBS back in the 90's. In that situation, The previous deal being for much less a year, and the NFL cut a deal which, combined, was worth $2.2B (that's billion!) a year over eight years . Getty became a real player when they got this deal, as did the, at the time, largely non-existent Fox Sports division.

The AP on the other hand, really is not equipped to handle or manage a Getty-like service, and the NFL may, unless the AP overstaffs with photographers, editors, not be as prepared as they should be. The problem is, AP staff photographers are already grumbling about having to file their outtakes (known as OTK's) in the day(s) following an assignment, during down time. The time commitment to the AP/NFL deal will tax the AP's photographers even more, as they look to bulk up their image archive to squeeze every dime of sales. For example, the AP is now encouraging staff photographers to file vacation, and off-hours photography to them, offering a paltry 30% on the sales of those images, but here's the kicker - when that staffer dies, neither their spouse, nor heirs, will continue to get that revenue, and that's just plain wrong.

Further, AP staff photographers have a limited knowledgebase when it comes to commercial keywording, and how to maximize revenue in that manner, so there will also be a serious learning curve on that front.

Look next, for the other leagues to re-evaluate their Getty contracts as they come up for renewal. When you are the sole source for commercial licensing of sports images, you can set your own prices without competitive downward pressure on pricing, and now Getty has lost that, and will likely lose others. While the AP had bid on, and lost the MLB contract a few years back, they are now distributing the the NCAA images from Rich Clarkson's deal with them (Getty had also tried to secure that deal), so this is the next step for the AP in their evolution towards more sports imagery.

Getty's Talented Team of Sports Photographers

En masse, Getty's sports photography team is probably the most talented sports photography department in the country. While Sports Illustrated may have a dozen amazingly talented (and some might say more talented) sports photographers, the 30+ team that Getty has assembled to serve not just the NFL, but the other leagues year round was a can't-be-beat team, especially in serving the commercial marketplace. The mindset is not just editorial, but also very commercial in nature.

Many members of that team had come from the NFL shop when the NFL essentially outsourced the photography so that they could use those bodies on the West Coast to boost the NFL Television division. Many of these are not actually employees, and are covered under contracts that have them as independent contractors, and this is where the devil is in the details. Somewhere around 65%-70% of all NFL sales by Getty have come from the freelancers or contributing photographers, with the remaining amount generating wholly-owned content and a the larger percentage of the sales.

That said, the AP is going to have to develop a far more fair contract than a work-for-hire one-size-fits-all arrangement that they currently have now, or the talented Getty team will likely not move an inch, nor should they. Some photographers, however, at Getty, were (rightly so) grumbling about the NFL split, with 40% going to Getty, 40% to the photographer, and 20% to the NFL, when the NFL requirement was, according to one source, 10%, so the question is - why was Getty offering an additional 10% to the NFL, and shouldn't that 10% the NFL wanted have come out of the Getty portion?

From a stylistic standpoint, shooting "AP-style" is far and away different than shooting for stock/stories/commercially, as the Getty team has honed their skills in doing. Filing your OTK's from images you just so happen to have taken, is not the same as having the mindset to capture those iconic images as well as telling the stories that the Getty photographers have fine-tuned their abilities to do.

In the end, whichever photographers don't go to the AP, will, frankly, see less revenue and less work as compared to those that do work in the more lucrative commercial sales market. Those that stay with Getty being left in the editorial dust of low end revenue.

Getty's Potential Legal Troubles

There are several tests that the IRS applies to determine if you are an employee, or a contractor. If Getty started to preclude these photographers from, say, working for Getty for the NBA, NHL, and MLB because they stuck with the NFL deal and migrated to serve another client (in the form of the AP, who will undoubtedly need to bulk up photographers ASAP) this would be a big problem for Getty.

When Getty senior staff were asked about, say, filing images with Getty for editorial sales, and the AP, for commercial sales, Getty demured, and gave what amounts to a non-answer, during a conference call three days ago. Suggesting to the photographers that they can't cover both is akin to the Getty photographers being school-teachers, seasonal workers, and idle the rest of the time.

One problem for the current contracted team of photographers, is that they may be contractually required to stay, since nothing in their contract said anything to the effect of "if Getty Images loses the NFL deal, photographer can, at their sole discretion, terminate this contract..." so Getty may try this heavy-handed tactic to keep this stable of photographers.

Other Complications

One of the issues at hand is the "Iron Mountain" collection of upwards of 2M analog images. While there are hundreds of thousands of contributors' digital images on the Getty site, and even more when you count the former Wire Image photographers, the analog history of the NFL sits in cold storage, and the expectation is that the management of those images would go to the AP, but that issue seems to be a bit of an unknown. NFL team owners recently learned of what is literally the history of their teams being inaccessible or otherwise potentially in jeopardy, and are now moving the status of the analog collection to the fore so that these images can be accessible, but the ability to monetize that collection may be questionable, and moreover, personal feelings may be clouding business judgement, but the costs to do the digitization may now move to the AP ledger.

In addition, Getty was trying to charge each team a reported $30,000 each year to maintain the image archives for each team, hoping to recoup as much as $960,000 in the process. Will the AP try to do this too, and were they saavy enough to have included these types of a la carte services with thoughtful pricing in their contracts?

How Did This Happen?

When Getty was negotiating this deal, they were at a strict disadvantage, because of the sentiments surrounding how much Getty paid for Wire Image. Signs point to the real possibility that Heller & Friedman, focused on the breakup of the company, saw the sports market as a distraction, and not a division that met their profits-to-expenses ratio, so it was not so difficult to let go, not to mention the likely reality that they didn't want to be "re-investing" (dumping?) $1m into the contract, and the NFL percentage may have been migrating upwards.

As a final question - the AP is supposed to be in the business of gathering and reporting on the news, and while the sports leagues have argued for years that they are entertainment, and not news, the impartiality of the AP certainly will be called into question as issues like athletes taking banned substances comes up, as well as other sports controversies. For example, would the AP have been as aggressive in covering the Michael Vick story - a taint on the NFL's image, had they been "in bed" together last year? Getty's "editorial integrity" was called into question following the NBA's brawl last year, and the void of coverage and available images after that event. Censorship clearly took place then, with images being pulled from Getty's site at the request of the NBA. Will the AP allow this?

This question will continue to linger, and ad to the AP's struggle to serve the news and new commercial market that they have carved out.


Final Lesson: Photography, properly managed, with rights, licensing, and so on, can be a significant generator of revenue, and should not be sold out to the lowest bidder.



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Wednesday, April 1, 2009

The Glass is Half.....(what's your answer?)

Business is good? Business is bad? What's your answer?

There is a lot to look at these days, and to come up with an answer. Just as Chicago delivers its chosen son to become President, and one of its premier photographers to become official White House Photographer, both papers are joined in the pit of bankruptcy.

Life Magazine has, as Daryl Lang so rightly points out, devastated the value of a wide swatch of photographic imagery. I can hear the mantra now "heck, Life Magazine published the best images of the 20th Century, and if they are free for me to use, why should I pay for others?" (And, as someone who has been published in that magazine - one caution - I registered the work with the Copyright Office, so I await the infringers mis-step.)

a lack of money will eventually doom
C-Registry as the roadkill of the
Web 2.0 era.
Speaking of Copyrights, the C-Registry continues to hawk it's mea culpa to anyone who will listen. The problem is, they just were not transparent about the process, nor are they about their future intentions once they reach a critical mass, and they have been given many opportunities to dispel these concerns, and the silence is deafening. I predict that, just as with Digital Railroad, who promised they would never get into stock licensing, so too, debt and a lack of money will eventually doom C-Registry as the roadkill of the Web 2.0 era.

April 15th is just around the corner. Yes, friends, the tax man cometh. How many of you are sitting down right now and realizing that 50% of your profits are going to the government, and realizing that you didn't save anything to pay Uncle Sam, and are now wondering where you're going to come up with the money you owe?
(Comments, if any, after the Jump)

To comment on another piece by PDN's Lang, it was written about the demise of Studio Photography magazine (that I will miss from my mailbox) that "The industry is shifting away from a business-to-business segment and more toward business-to-consumer, spokesperson Kathy Scott said in an e-mail." Hogwash I say. While B2C, in the form of weddings, senior portraits, family portraits, and so on, will remain steady and consistent, B2B continues, from this independent photographers' standpoint, to be a growth area. The higher likelihood is that their titles were not seeing the ad revenue necessary to sustain it, in print form. Photographers are getting their information from broader sources, much of it online. Previously, the print platforms were the gatekeepers of insights and knowledge, and now, as a critical mass (AC Nielsen reports Sixty-four percent of Americans age 12 or older have used the Internet in the past year...Almost half of these Internet users (31 percent of all US residents age 12 or over) report going online everyday) is achieved, sources for trusted and thorough knowledge are available to the masses with a few mouse clicks.

Two weeks ago, against the advice of my investment advisor, I took I bet out on a banking stock that was at $1, and now I have tripled that investment - because I was in a cash position to make (and, yes, possibly lose) that investment. If that investment (bet) had tanked, I would have been just fine, so it was as safe a bet as I felt I could make, with a significant potential upside.

Despite concerns in Q4 of 2008, we have staffing levels that we have not had to diminish, so as the calls are coming in for work, we have the post production capacity and logistical support to prepare estimates and collect on invoices.

It has been suggested that this blog is about hits and traffic, and as anyone who actually reads this knows, thats never been the case. The purpose for this blog is to give insights and analysis on the business of photography. Sometimes instructional, sometimes informative, and, yes, often critical. When we see bad moves by players in the industry, we call them out on it. Whether it was Xerox, PDN, Getty, Icon, Nat Geo, USPW, ASMP, AP, PACA, Conde Nast, DRR, Microsoft, or any of the other players regular readers have come to know more about. When these players try to slip a mickey to photographers, we try to be the antidote.

When the economy is down, as the saying goes, cash is king. The time to buy is in a depressed market - if you can. When you have no ulterior motive, the people standing around trying to figure out what your motives are for doing the right thing often would benefit from a bit of self-examination. As Ice Cube says (here), "check yo self before you wreck yo self."

Friends, the glass is what you make it out to be. From my perspective, the future is bright, and, for some, as they say, it is darkest before the dawn. For others, it's always darkest before it's pitch black. Go figure.

Please post your comments by clicking the link below. If you've got questions, please pose them in our Photo Business Forum Flickr Group Discussion Threads.


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Monday, March 30, 2009

World Picture Network - Shuttering Assignment Desk

With "hundreds of photographers in over 70 countries whose experience covers the spectrum of editorial and commercial photography, including conflict coverage, news, sports, entertainment, science, technology, fashion, lifestyle, portraiture and documentary photography" benefiting from assignments, The shuttering of the World Picture Network's assignment desk, this should have a bit of an impact.

The agency was founded in 2001, and grew to a point where a move to New York City in 2004 was in order.

In a letter to contributors, Brian J Miller, CEO, wrote "WpN is another victim of the severe economic downturn, along with most of our clients and many of you. Our assignment revenue has dropped dramatically in the last five months and it simply does not make financial sense to continue supporting the losses we are sustaining with no improvement in sight. "

(Full text of e-mail, after the Jump)

Dear WpN Photographers,

I am writing to alert you that WpN will stop taking on new assignments in the next few weeks. Beginning today, we are telling clients that they should contact you directly for all assignments to be shot after April 17th.

WpN is another victim of the severe economic downturn, along with most of our clients and many of you. Our assignment revenue has dropped dramatically in the last five months and it simply does not make financial sense to continue supporting the losses we are sustaining with no improvement in sight.

I should note that image sales from our archive, both direct sales and those through our Network Partners, have been less impacted by our clients’ budget constraints. I would encourage you to leave your images with us on a non-exclusive basis. I have always felt that “more eyeballs means more sales,” and many customers know to come to our website or to our Network Partners for your images. The amounts may not be life-changing, but any sales that result are found money for you.

Rest assured that you will be paid on all completed assignments as clients pay us, and you will continue to be paid on all image sales on the same basis.

I do not know what the future will bring for any of us individually or for our industry, but I wish you all the best. I hope you are able to weather the storm and continue to use your considerable talents successfully for many years to come.

If you have any questions or concerns, fee free to call or email:

Brian (646-XXX-XXXX) Xxxxx.Xxxx@worldpicturenews.com

Todd (646-XXX-XXXX) Xxxxx.Xxxx@worldpicturenews.com

Alden (646-XXX-XXXX) Xxxxx.Xxxx@worldpicturenews.com

Brian J. Miller, CEO
World Picture Network LLC
62 White Street, #3W
New York NY 10013
(P) 212-XXX-XXXX
Yes, indeed, this is one more case of a good organization suffering because of the economy. Perhaps this will change, since WpN is not closing up the entire operation, but just the assignments division. Only time will tell.

Please post your comments by clicking the link below. If you've got questions, please pose them in our Photo Business Forum Flickr Group Discussion Threads.


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