Also, let's not confuse what a stock image company would pay a photographer for exclusive rights to a unique photo with what it would cost a customer to purchase a license to use it.
A photographer might get thousands on a good photo, but it can be licensed for use for much, much less.
Thats a basic misunderstanding of how licensing works right there. Should you really be giving any advice if you have so many basic misunderstandings of the workings of the industry?
A stock image company doesnt pay a photographer for exclusive rights, there is no payment up front for images. They act as our agent. Why do you have such difficulty with understanding what an agent is?
A client will pay the agent for exclusivity then the agent takes their cut and passes the rest on for the license. Thats the way it works. They dont pay us per image then license on, they can do in some circumstances but its very rare.
As for high end being reserved for one of a kind news images. Well those days are well gone, the high end prices are associated with advertising usage and exclusive usage regardless of genre. News images do have a short tail whereas advertising/creative images can have a long tail, particularly for exclusivity and the prospect of relicensing when the original term is up.
As for prices coming down for photographic work, it depends. It also depends on the photographer and the photographs. My prices have gone up in the last couple of years.
I have mentioned a few times on this forum the range of prices I have sold for. Thats a range of prices. I have sold images for 50 dollars I have sold images in excess of 10k. So I have a fair idea of the market value of an image so add on the 2.5k min for wilful infringment (in the US and if it applies) and you have a good idea of what a court case will bring. Its usual to settle for less than that.
As you point out a $500 dollar license is a $500 dollar license regardless and any background research will find this out. Depending on the jurisdiction damages are usually assigned in the 3x-10x the original license depending on the type of infringment and how the dialogue has been conducted, but nowhere near 20k. Again quoting 20k is just picking numbers out of the air and perhaps quoting some of the more unique (or just plain ridiculous) demands.
It also depends a lot on the photographer and their experience and the evidence they show. I am a full time professional photographer and I regularly license my images myself as well as through agents so I can show a range of prices for a range of usages. If someone else only sells photos for 50 dollars max or microstock prices then it will be improbable for them to claim more than this. As Ive mentioned numerous times, its on a case by case basis and research is required but any decent lawyer/solicitor will tell you that. Get an independent valuation and go from there.
Saying Ive negotiated a 3 year buyout for 45k is meaningless as is someone saying they can buy a photo from istock for a dollar. Without context the prices and figures are meaningless.
mcfilms, I dont know the images you are talking about and the figures demanded so I cant comment. Prices are based entirely on usage, not content. You might think that the images I have licensed through Getty that gross 10k per year might be mediocre, others might be willing to pay 10k as it fits their needs exactly. It all depends on context and usage and if the images have an exclusive license in effect at time of infringment. 2 months ago I quoted a company 1k GBP for 3 years web usage for an image that met their needs exactly. They said that price was ridiculous and that they were told they could get an image for 50 quid. I said they should go ahead. Guess what 2 months later the money is in my bank account. That means that image was worth the 1k to them in the end after 6 weeks of unsuccessfully searching for the image. The image is fairly repeatable and there are a lot of similar images out there but there are none that match their needs exactly. Thats the difference.