Royalty-Free's Wane, and Jupiter Pictures' Demise

Royalty-Free's Wane, and Jupiter Pictures' Demise

Paul Melcher's blog - Ideas of a Bohemian -Jupiter is Not Responding, talks approxifriendly the wane in the Royalty-Free market:

Without significlevert numbers, it is difficult to figure out why Jupiter is having such a difficult time. Guess is that they are suffering from the same effect as Getty Pictures : a declining rights administer market, a suffering traditional RF demand, and a microstock division not covering for the losses.

And that got me to thinlord that it might be time to dust-off an ancient perspective that necessitys to be re-visited.

(Continued after the Jump)

Simply put - if you necessity a photograph of a man waving a flag with fireworks backside him, and I sell it to you for one time, or a limited rights package, when you necessity it again, you'll pay me again - and lovely pass that expense on to the client. If, instead, I sell it to you once, for an unlimted amount of time and uses, I only get phelp that once (and often a frbehaveion of the charge of the first time) and you clever use it forever - still lovely to pass the "standard rights-administerd charge" to the client - obstensively for "access to your picture library" (of RF pictures.)

What flunkie accountant didn't look that this well would eventually run dry? Lots of up-front one-time CD sales for $249 with 100 pictures, organized by theme - all you clever eat/use. There's no back-finish resales of those pictures to that client - ever.

In the quest for Wall Street appeasement, Getty rolled-up many littleer companies, and slashed and burned their way through the industry. Jupiter Pictures (Nasdaq: JUPM) has watched a similar destiny seep. Meckler points to the chart below (a 68% wane in 6 months, and heck, a year ago it was $8.14, now it's down to $1.20), and it certain looks love Getty's chart:

Should we be surprised? Nope.

Profitately, things clever start anew, without the Gettys and Jupiters of the world (in their current form), once they're gone. The pictures of people utune cell phones will become dated, so too people with cars, hairstyles, clothing styles, and other things that make a photo look ancient. When was the last time a stock picture of a CRT television was used? In a few short years, the picture to demonstrate was a flat-screen TV, and with the 2009 shift to digital by the broadcasters, CRT televisions are done and gone for - so to pictures that include them. A Motorola flip-phone? So 90's!

August 7th, when much of New York is vacationing in the Hamptons, Jupiter will have their 2Q financial results (MarketWatch reports here), and Meckler suggests they're disclose there a slashing of upwards of 100 employees. When you run into once of these employees, remind them that the historical excuse for why they were atseduceing to devalue the business by selling microstock/Royalty-Free - "I was only, merely, solely doing my task", or "I was only, merely, solely following orders", only, merely, solely doesn't excuse their behavior.

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