The short – and perhaps pithy – answer to where licensees of stock imagery congregate these days is “Shutterstock”, but the longer answer is more interesting, and reveals client-side fragmentation even with recent supply-side consolidation.
Nearly twenty years ago, the stock agency landscape was fragmented and analog, two of the requirements for Mark Getty and Jonathan Klein’s success. Their biggest achievement – like successors iStockphoto and Shutterstock – was in building a platform that had no peer in delivery to customers, across speed and accuracy of search, ease of use and price. Klein often referred to “the power of the platform”, and certainly today no one can boast platform power better than Shutterstock.
In recent past the value prop post-recession was price. iStockphoto and their peers instigated the balance of market share shift toward inexpensive credit-based prices, but the real battle in the trenches was around ease of use and access – price was important, but given the overall increase in price variance industry-wide it gradually ceded its argument to access. Market education, and the guidance of expectations fostered from mobile apps, informed customers along immediacy and not price.
Content was an afterthought, as oversupply afforded plenty of options in one place. The more customers turned to Google for image searches, and organic means of finding content via social platforms, the more fragmented the market became as did the noise-to-signal ratio. The non-exclusive nature of the industry in some ways worked against itself and siphoned off traffic from iStockphoto and Fotolia, as they all represented the same content, so why not go to Shutterstock’s all you can eat buffet?
So, where are the customers now? There are more of them, yes, and they are licensing more for shorter duration of use, so volume increased. The major problem with identifying where the customers are is tied to their behavior – they’re everywhere, yet nowhere (specific), spread out across the social graph and business landscape. More than ever, they’re finely and narrowly segmented from the personal publisher/passive user to seasoned ad campaigner. Moreover, they’ve moved on from traditional content sources, and often the only and earliest affiliation they have with licensing images is from iStockphoto, who set expectations that few businesses have been successful in emulating years later.
To reach customers with the type of network effect and scale of an iStockphoto or Shutterstock, you need a platform and truly unique proposition. For aggregators, the good news is there’s plenty of content on the market for free; rights grabs by Instagram and other apps, who aren’t even in the business of licensing, show how easy it is to gain broad rights to content. If you’re focused on licensing from the outset, like Foap, it’s a simple and transparent acquisition strategy (and a mobile one). The only real way to capitalize on acquired content, and engage customers, is to continue to shorten the span of the act of licensing, so that it becomes a mist in the background – the deus ex machina that simply grants permissions and exchanges money simply, effectively, and quickly.