Monthly Archives: December 2017

iStock Increasing Targets for 2018

In late 2017 I decided to give up my iStock exclusive status. That means I now receive a lower royalty rate from my sales on iStock, but I am able to make my images available through other sites. I outlined my rationale in this post.

The royalty rate that iStock exclusive contributors receive is based on their previous year results. The more your files are downloaded the higher royalty rate you receive. In December 2017, the new targets have been announced and you might not be suprised – iStock is increasing targets for 2018.

table of rates

I’ll focus on the photo information as I don’t contribute illustrations and have not submitted any new videos in the last 3 years,

So what does this information mean?

Firstly, as soon as you become an Exclusive artist you will receive a 25% royalty from your sales. Once you pass 550 downloads for the year, you will increase to 30%. That is a straightforward target if you have a reasonable sized portfolio. Then it starts to get hard. To move up to a 35% royalty you need to have 5,500 of your files downloaded. How hard is that? I have a portfolio of 10,000 images and will finish 2017 with around 4,300 downloads. So 5,500 is going to be difficult for most contributors. And from there the targets sky rocket. To achieve 40% royalty you need 22,000 downloads and to reach 45% you need 330,000 downloads. I would expect very few contributors are at these levels.

How does this compare to the previous years levels?

Achieving the 30% level is straightforward, so the key here is the 35% target. 5,500 downloads is a 10% increase on this years target.

What’s the context?

iStock recently announced that it has added 9.6 million files to it’s database in 2017. That’s likely to be dominated by photos (although iStock does accept other files as well).

How likely is success?

If you are striving to reach the 35% level you will need to achieve 5,500 downloads in an environment where there is a large increase in the number of files available. That is going to make success very difficult.

What to Do?

For a contributor to succeed in this environment they have 3 choices:

  1. Produce very high volumes of images to continue to grow income
  2. Produce very unique images so the influx of other contributors files doesn’t significantly impact them
  3. Look for other alternatives

These announcements from iStock reinforce my view that we are going to see the gradual decline of the micro stock libraries in favor of niche image libraries. Why? In niche libraries the customers will save time by only searching through relevant content, and contributors will be able to get higher royalties per download. I outlined those thoughts in 5 Stock Photography Predictions for 2018.

Plenty of iStock exclusive contributors will stick with the model they know despite iStock increasing targets for 2018. I won’t be one of them. What about you?

5 Stock Photography Predictions for 2018

As 2017 draws to a close I have been giving thought to what the new year will bring in the fast changing world of stock photography. Stock photography makes up a considerable portion of my business, and it’s a part of the industry which has changed significantly in the last 5 years. It’s now possible to shoot stock images on your phone and upload them to your image library immediately. There’s options to shoot news worthy current events and upload them while the event is still happening. And there’s the inevitable decline of studio shots on a plain white background (thank goodness!). I’ve wrapped up my thoughts into 5 Stock Photography Predictions for 2018 and outlined what we, as photographers, can do to make the most of these trends.

Prediction #1. The Major Image Libraries are going to Continue to Compete on Scale and Price.

When I say the major image libraries, I’m referring to the big microstock players like iStockphoto, Shutterstock, Dreamstime and Adobe. Their business models are built around offering a huge number of files in one place.

SelfieFor customers, this can be good as they can get all of their image needs in one place. For photographers, it can be very difficult to make your images show up in this vast sea of high volume and low quality images.

Photographers who want to compete using the major microstock libraries to distribute their images will need to keep production costs low and volumes very high. (That sounds like a path to hard work and limited creativity to me).

Prediction #2. Subscription Programs are Going to Continue to Drive Prices Down.

Subscriptions have major benefits for image libraries. With the customer paying the same amount per month, the image library can accurately predict their income in future months. And of course if the customer doesn’t use all of their subscription for the month, most libraries are keeping the customers money and not having to pay a royalty to photographers for that month. That can make it a profitable business for the image libraries.

Subscriptions are very attractive to image libraries and they compete aggressively, particularly to win large clients. Unfortunately subscriptions have also driven down the royalty received per download by photographers.

For the photographer to do well financially in this model – again they will need to keep production costs down and volumes very high. Urrrggghhh.

Prediction #3. Customers are Going to Demand a Better Solution

Predictions #1 and #2 are an extension of the current trends in the stock photography market. It is leading to an influx of ‘low production value’ images. And that influx is in high volumes. Photographers are adding more images in the hope of making up for the reduced royalty per download.

santa hat

Customers are no longer looking for generic images

So where’s this all heading? It is making it harder and harder for customers to find the type of image they need in a short time period. They are getting frustrated with the amount of time it takes to find the image to meet their needs. It’s only going to get worse as the large libraries pass 15 million, then 20 million, then 25 million files.

I’m predicting we will see continued frustration for customers, leading to them looking for alternative solutions.

Prediction #4. There Will be Growing Demand for Authentic Stock Images

What do I mean by ‘authentic stock images’? Several years ago there was a time when a ‘generic’ stock image was enough for a buyer. A generic image would help tell their story. We are seeing those days rapidly pass, with much less demand for studio shots on a white background. What are we seeing instead? We are seeing demand for ‘real life’ settings and ‘real life’ people. We are talking about much less of ‘beautiful models in studios’ and much more ‘everyday people in everyday situations’. I recently heard a saying which sums up this trend – less perfection, more authenticity.

What can photographers do to capitalize on this? Shoot images which communicate ‘less perfection, more authenticity’ and you’ll see your downloads grow.

Prediction #5. The Rise of the Niche Image Library

Prediction #3 says customers are going to look for alternative solutions to their image buying needs. They no longer want to wade through thousands of images to find the one they need. And unfortunately, the major libraries have a lot invested in their current solutions. I predict we are going to see customers, in growing numbers, rejecting those solutions and looking elsewhere.

And where will that be? It will be with niche image libraries. Libraries which don’t offer every image type – but they do offer high quality, relevant images for their niche.

What type of niche am I talking about? It could be anything. It could be country specific. I have started uploading my own files to a library which specializes in Australian content – you can read more about my rationale for moving away from the microstock sites here. It could be industry specific (like tradespeople, or mining, or healthcare). It could be content specific (like wildlife photography).

And these libraries will charge higher prices than the large microstock players do.

Coffee shop

Less perfection, more authenticity. Real people in real situations.

How will niche libraries justify higher prices? By saving customers time in looking for the images they need. Customers will save time using multiple websites from niche libraries. They’d rather do that than spending hours wading through pages and pages of images with the large microstock players. And with higher prices come higher royalties for photographers. And with higher royalties comes more money to invest in shoots, which leads to greater creativity, which leads to better images.

Ultimately it will lead to niche libraries having unique and superior content to the big volume libraries.

How can photographers benefit from this prediction? I’m convinced that niche players and higher prices are the way forward. Photographers would do well to research who those niche libraries are and begin a relationship with them. If you shoot wildlife images, start looking at the niche wildlife libraries. If you shoot urban lifestyle images, look at niche libraries that specialize in this content. You get the idea.

As an aside – how might the major microstock players benefit from this trend? They could be the source of disruption to their own business! Rather than wait for a niche player to grow and get traction, the major players could start niche libraries themselves. Much like the major airlines launched ‘low-cost’ off shoots in the late 1980’s, the major image libraries have the expertise and resources to start the niche libraries themselves. (If you are a Getty Images executive reading this – remember you heard it here first! From one bloke down at the bottom of the world in Melbourne, Australia. Your choices are to watch others do this, or lead the change. Be bold. Disrupt your own business model).

2018 is going to be another challenging year in stock photography. Thanks for reading 5 Stock Photography Predictions for 2018. We’ll check back in 12 months and see how accurate they were! Happy shooting.