Getty Images Comeuppance, Watch them Burn (Cash)

[Matthew Chan]

Thanks to Greg Troy, I am once again re-energized to discussing Getty Images and posting about them and their ilk.  In my absence, it appears there has been an onslaught of "good news" for ELI readers at the expense of Getty Images.

Read these articles!

http://www.bloomberg.com/news/articles/2015-02-26/getty-images-outlook-blurs-as-photo-rivalry-triggers-price-war

It's going to be difficult to pay those obnoxious salaries when they are burning 1/3 cash in only a few months! Time for Getty Images layoffs! Rejoice!

http://www.seattletimes.com/news/getty-images-said-to-run-tight-on-cash-as-profit-drops/

A few years ago, they try to monopolize the market by buying up its competitors. Turns out, it isn't so easy to win by just buying everyone up because there is just too much to buy!  With digital photography on the rise, more images can be produced than sold. As such, prices has to come down which Shutterstock and Fotolia seem to understand.

The "high-end" images in which the below link describes won't last.

http://www.seattletimes.com/business/local-business/getty-attempts-to-sharpen-its-focus/

“They have great relationships with the blue-chip advertisers and the agencies on Madison Avenue,” Salas said. That premium segment of exclusive, high-end photos that sell from $300 to $1,000 is solid and contributes about a third of Getty’s business, he said.

This is propaganda.  It is allegedly "solid" today.  Let's see if they can say that in two more years.  After all, it was only 2012 when they were allegedly riding high "dominating" everyone.  It is now 2015 and Getty Images is now bleeding 1/3 of their cash in only a few months.

When there are huge paradigm shifts, no one is immune to lowered pricing.  Madison Avenue will eventually get smart or someone will court them away from Getty Images.

I have absolute faith and confidence that the supposed "luster" of the Getty Images name won't matter much as time passes.  Images are largely a commodity item so it is becoming a pricing game as far as I am concerned.