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DPChallenge Forums >> General Discussion >> istockphoto.com to merge with Getty Images...
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 02/09/2006 02:03:11 PM · #1
Click for the article announcement here

Discussion on their forum is here.

Some are loving it, some hating it, and some just in shock. This should be interesting!
 02/09/2006 02:13:59 PM · #2
wow, cool...... i have images with istock.... hmmm my job uses gettyimages this is pretty cool
 02/09/2006 02:17:30 PM · #3
This is certainly a day of change in the microstock world -- in addition to this news, Shutterstock has announced that they will be distributing stock video clips.
 02/09/2006 02:18:32 PM · #4
isn't istock "microstock" and Getty "Macrostock"?

I wonder wat this is going to do to pricing models...
 02/09/2006 02:22:36 PM · #5
Supposedly iStock will remain an independent entity, so this has more to do with financing and marketing than actual operational changes (for now).
 02/09/2006 02:39:39 PM · #6
Originally posted by GeneralE:
Supposedly iStock will remain an independent entity, so this has more to do with financing and marketing than actual operational changes (for now).


makes sense from Getty's perspective to get a finger in both pies.

I wonder how they'll drive it - more image prices downward to istock price levels probably.

Probably gives them a means to enforce quality/ size levels to maintain differentiation on micro/macro price models too. I wonder how long istock will last before it becomes just a vacuous front-end brand to getty.

Certainly wouldn't be the first time.
 02/09/2006 02:42:13 PM · #7
Originally posted by Gordon:
... I wonder how long istock will last before it becomes just a vacuous front-end brand to getty.

Certainly wouldn't be the first time.

One of the posters over at the iStock discussion thread predicts precisely this outcome.
 02/09/2006 05:10:20 PM · #8
sorry for the double thread start :)

Yeah, looks like it will be interesting, and the big boys have accepted that micro is here to stay.
 02/09/2006 05:23:06 PM · #9
can $50,000,000 be right? A paste from the istock thread

ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
On February 9, 2006, Getty Images, Inc. (the company, we) purchased all of the shares of iStockphoto, Inc. for $50.0 million. iStockphoto, Inc. is a privately held stock photography company located in Calgary, Alberta, Canada that licenses royalty-free imagery exclusively through its websites, www.istockphoto.com and www.istockpro.com. We currently plan to operate this business separate from our core business.

The $50.0 million purchase price was funded from existing cash and cash equivalents balances and consisted of $45.7 million paid to the sellers upon closing (February 9, 2006) and $4.3 million held in escrow. The amounts held in escrow are to be paid to certain key employees (former shareholders of iStockphoto, Inc.) after they complete one to three years of continued service with the company. These key employees have signed employment agreements with the company for these periods in addition to non-compete agreements for a period of 24 months from termination of employment or the closing date of the acquisition, whichever is later.

The majority of the purchase price is expected to be allocated to goodwill and identifiable intangible assets. Final purchase price allocation is expected to be completed during the first quarter of 2006.

ITEM 7.01. REGULATION FD DISCLOSURE *
On February 9, 2006, iStockphoto, Inc. issued a press release announcing the transaction described in Item 1.01 of this Current Report on Form 8-K. A copy of this press release is attached hereto as Exhibit 99.1.

* The information furnished under Item 7.01 of this Current Report on Form 8-K, including the exhibit attached hereto, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any other filing under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.

Here's the link
 02/09/2006 05:44:22 PM · #10
Told you ... it's a huge company...for which photographers see mere pennies.
 02/09/2006 05:50:49 PM · #11
Originally posted by deapee:
Told you ... it's a huge company...for which photographers see mere pennies.


Getty have purchased istockphoto for the profit margin it is able to generate, not to pay photographers more money.

What photographers will be able to get eventually is a much wider audience which should create greater sales.
 02/09/2006 05:53:06 PM · #12
Originally posted by keegbow:
Originally posted by deapee:
Told you ... it's a huge company...for which photographers see mere pennies.


Getty have purchased istockphoto for the profit margin it is able to generate, not to pay photographers more money.

What photographers will be able to get eventually is a much wider audience which should create greater sales.


You're not understanding me...not matter how much their sales increase or how many more people buy, the photographers are not seeing anywhere near their potential. You have a HUUUUUUUUGE company brining in MILLIONS of dollars and paying out pennies...the more they sell, the bigger their profit becomes...people aren't going to suddenly make a fortune selling for pennies, but Getty will make a fortune from it.

EDIT: it's like let's say you make $20,000 a year (and your boss makes 30 million off your work) -- compared to you making $40,000 a year (and your boss making 60 million off your work)...either way, you lose.

Message edited by author 2006-02-09 17:54:20.
 02/09/2006 06:24:29 PM · #13
Originally posted by deapee:
EDIT: it's like let's say you make $20,000 a year (and your boss makes 30 million off your work) -- compared to you making $40,000 a year (and your boss making 60 million off your work)...either way, you lose.

Just like your typical Fortune 500 company, eh? Except the vast majority of their employees don't see anything like $20,000/year -- someone making the Federal Minimum Wage (40-hour week x 52 weeks -- no vacation) grosses $10,712 ($893/month). How much does the CEO of McDonalds make?
 02/09/2006 07:00:57 PM · #14
Originally posted by deapee:
Originally posted by keegbow:
Originally posted by deapee:
Told you ... it's a huge company...for which photographers see mere pennies.


Getty have purchased istockphoto for the profit margin it is able to generate, not to pay photographers more money.

What photographers will be able to get eventually is a much wider audience which should create greater sales.


You're not understanding me...not matter how much their sales increase or how many more people buy, the photographers are not seeing anywhere near their potential. You have a HUUUUUUUUGE company brining in MILLIONS of dollars and paying out pennies...the more they sell, the bigger their profit becomes...people aren't going to suddenly make a fortune selling for pennies, but Getty will make a fortune from it.

EDIT: it's like let's say you make $20,000 a year (and your boss makes 30 million off your work) -- compared to you making $40,000 a year (and your boss making 60 million off your work)...either way, you lose.


I was agreeing with you, istockphoto was a very profitable business and thats why getty brought it, and why was it so profitable, because it paid peanuts for the images it sold.
 02/09/2006 07:46:50 PM · #15
Originally posted by GeneralE:
Originally posted by deapee:
EDIT: it's like let's say you make $20,000 a year (and your boss makes 30 million off your work) -- compared to you making $40,000 a year (and your boss making 60 million off your work)...either way, you lose.

Just like your typical Fortune 500 company, eh? Except the vast majority of their employees don't see anything like $20,000/year -- someone making the Federal Minimum Wage (40-hour week x 52 weeks -- no vacation) grosses $10,712 ($893/month). How much does the CEO of McDonalds make?


I agree -- which is why I disagree with companies like McDonalds and iStock...companies should be more like Costco...but what are you going to do?
 02/09/2006 10:28:39 PM · #16
It is like what happened with the company I worked for. A multi billion dollar company comes in. Says everything will remain the same. So, they get rid of the CEO tell the programmers to sign agreements to help transfer any good systems programs to their site. In other words your job is now to get rid of your job. Comes termination time, hum and aha, about paying what they said they will pay.

Reality is, if you can not beat them. Purchase, raid and close.
 02/09/2006 10:32:14 PM · #17
Originally posted by nova:

I am optomistic for the continued evolution of the stock photo industry that will be rewarding to contributors. Simple enough.


uhm...rewarding to contributors? You're joking, right? The company just made FIFTY MILLION DOLLARS what was your share?
 02/09/2006 10:33:32 PM · #18
That should probably read "the previous owners just made.."
 02/09/2006 10:41:10 PM · #19
Originally posted by deapee:

I agree -- which is why I disagree with companies like McDonalds and iStock...companies should be more like Costco...but what are you going to do?


Just whine, I guess.

As for my share, about $500 for very little work done. How much are you paid for your dpchallenge entries? If you enjoy what you are doing, then the money is secondary, right?

More power to them, congrats to those who had a vision, risked all they had and won big time.

------------

It was this kind of garbage that caused me not to renew my dpc membership for several months. I'm done with the forums. See ya around.
 02/09/2006 10:46:00 PM · #20
Macro vs. Micro stock arguments aside... this is a very good move for us playing the microstock game.
 02/09/2006 10:46:41 PM · #21
Originally posted by nova:
Originally posted by deapee:

I agree -- which is why I disagree with companies like McDonalds and iStock...companies should be more like Costco...but what are you going to do?


Just whine, I guess.

As for my share, about $500 for very little work done. How much are you paid for your dpchallenge entries? If you enjoy what you are doing, then the money is secondary, right?

More power to them, congrats to those who had a vision, risked all they had and won big time.

------------

It was this kind of garbage that caused me not to renew my dpc membership for several months. I'm done with the forums. See ya around.


This kind of garbage? I only shared my opinion in a non-derogatory, non-confrontational manner. If you can't handle it and feel the need to run away and not face the reality that is before you, then that's your prerogative, but don't blame it on me or my opinion, please.
 02/10/2006 12:18:30 AM · #22
Originally posted by nova:
As for my share, about $500 for very little work done. How much are you paid for your dpchallenge entries? If you enjoy what you are doing, then the money is secondary, right?


This mentality is what creates starving artists...

Message edited by author 2006-02-10 00:18:57.
 02/10/2006 12:26:02 AM · #23
I think this issue has been hashed out too many times in DPC threads. It's getting boring already. Please don't hijack this thread into another debate about whether or not microstock is good, bad, or evil.
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