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Laugh at iStock? Me? Never

I must admit to telling a lie, not for the first time but a lie all the same. I have spent the past couple of weeks, not just chuckling, but belly laughing at the mess iStock have got themselves into.

iStock state that they are independent of Getty and as such, run that way, as claimed by the COO of iStock, Kelly Thompson:

First, it needs to be noted that while iStock is a part of Getty, we are still run independently. The announced changes were decisions — difficult decisions — made by iStock for the benefit of iStock and its community.

I don't know if he is deluded, or he is deluding his gaggle of microstock shooting followers? One would believe that Getty do talk with iStock employees and inform them of what they expect, so I will assume that he is deluding his clan. Oh, what power he wields.

Getty are owned by Hellman & Friedman and no, it wasn't called Friedman before the purchase with "Hell man" added after they looked at the figures a little more closely post sale. From what I gather they have been known by that name for a while, since 1984 in fact, when they were set up.

Hellman & Friedman paid $2.4 billion for a business much in decline, RF and RM on the slippery slope to Armageddon, the only future growth prospect being microstock and thus iStock.

Getty have known for some time - their senior management team being one of the smartest in the industry - that microstock prices and margins, at current levels, would be unsustainable without ongoing growth. For many years growth came and at impressive rates, however, that has now all but stopped.

They also know, that without the gravy train that is constant growth, they would not be in charge of a business worth $2.4 billion dollars, let alone one worth more than that. Private equity companies do not like hanging around too long, so they will be looking turn a profit, as Guy Hands is with EMI. See any parallels; images, music?

Getty, or should I say iStock, as they make all the decisions you know, have dragged their feet, either because they have not known what do, or have been too scared to upset half of Eastern Europe, which is where much of iStock's supply seems come from.

Maybe Hellman & Friedman have interests in the territory or they believe, as I did when I was much younger, that if too many people were to jump up and down in anger at the same time, it would cause a tidal wave so large it would engulf NYC. Hellman & Friedman do have an office in NYC, even though it's on the 21st floor, they still have think about getting their lunch and going home from time to time, if a flood did indeed occur.

Now I am clutching at straws, I know, but there is a theme running here! Not to mislead you all though, I can tell you that Getty have been told to make money and make it faster than they are, by Hellman & Friedman of course. It's obvious. They are coming up to three years of ownership and they won't want to hang around beyond five years, unless they have to of course. It's not the way of private equity companies.

One can only assume that Hellman & Friedman thought they were getting a bargain with Getty, as they paid $34 per share to take it private, when the share price at its peak was over $90. It must have been like winning the Super Bowl or World Cup, when they got the business ‘so cheap'. If only they had come to me for advice, I could have saved them, well, $2.4 billion.

OK, back to iStock and its master plan. They have taken a little margin from some of  their contributors, nearly filled all East European ‘Stock Photography Rehabilitation Centres' and for what, a few measly million dollars. Is that it, is that all they have offer the financial men of Connecticut, who put up the cash? I don't think so.

There are boats that need replacing, new houses to be built, bigger pools to install and this cannot be done on the profits made from taking a bit here and there from irregular microstock shooters, made from people who photograph their own feet.

I always said, well not me but someone else with much greater knowledge, the best stock images are produced using this simple guideline, "shoot your feet, your friend (we all know there's more to it than friend, don't we), then the sky – anything else in between, over and over. If at first you fail to make money, try, try again".

Now, if you can't make money from using such wisdom, trying and trying, you should seek a profession in therapy, or some such other profession that is easy, both, to enter and make zillions. Fortunately for us dinosaurs, who have been around for all too long in this industry, it's funny, very funny, that there is actually no money in them there knees.

There will be more changes at iStock, there has to be. Will I still be laughing? Probably. Will the microstock community need more therapy? Absolutely. You heard it here first: re-train as a therapist, not only is it easy, but you have a ready-made clientele.

 

 

About the Author

Which Stock Agency is run and managed by very experienced stock industry professionals with a combined stock photography history of over one hundred years. No, that does not make us very old, there are a few of us with a lot of experience, that's all.

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