Getty Images and ShutterStock have announced their merger, which will result in a new combined company called Getty Images Holdings, Inc. Announced on January 07, Getty Images notes this change will help the organization to create a larger library of visual content, allowing both creators and customers ample opportunities. So far, the move has not been heralded by photographers, with many skeptical of how it will play. Here’s a look at what this merger may bring to the table.
According to the press release, this merger will have an approximate value of $3.7 billion, and Getty Images Holding will also retain its GETY stock market ticker. The move is said to help “to create increased capacity for product investment and innovation for customers.” In other words, this is likely to make the merger a massive monopoly, which is likely to battle against Adobe Stock and Alamy.
According to Craig Peters, CEO of Getty Images, the investment will include generative AI, search, and 3D imaging. Since AI is a huge part of Getty and Shutterstock’s portfolio, their merger will likely channel funds to its expansion, which both companies state is safe for commercial use.
While the press release speaks about its leadership and transaction details, there is not yet any detail about how the merger will impact the platform fee. There is also no clear indication that the two organizations will start a common website or people will have the chance to use both Shutterstock and Getty Images separately. Currently, Shutterstock charges customers $49 for a standard license of five-pack downloads. Getty Images, by contrast, a five-image pack charges $750 for smaller photographs and low-res videos. Now, with a combined company, the revenue is expected to be between $1,979 and $1,993 million; about 46% of this will come from subscriptions.
Either way, the merger has rung an alarm bell for photographers. On Reddit, photographers have voiced their hope that this will not impact their income. In one post, a photographer who worked with Getty Images for 12 years states: “The revenue splits were and still are extremely unfair to photographers. The communication with Getty editors was non-existent. Reaching anyone in the organization by phone or email was impossible.”
Considering Getty Images’ past record, it is evident that the company is more focused on AI images than actually benefiting stock photographers. For instance, the company was called out for reducing royalty rates while also removing rights-managed images from its catalog. Then, the company introduced problematic tools such as Product Placement and Reference Image, which corporations will likely use against stock photographers.
On the Getty Images and Shutterstock platforms, a person working with them can earn a royalty between 15% and 45% on each file license. Getty further adds, “Customer prices can also vary, depending on the file type, product type, and intended use. This ranges from under a dollar to several hundred dollars for each license to an individual photo, video, or illustration.” In translation, a person can barely make a living if their work does not meet the demands of the industry. With many newer people coming into the industry, a stock photographer can make between $.25 to $50 per download.
Getty and Shutterstock may think they are helping photographers, but they clearly aren’t. With the merger, a thread looms over the future of stock photography. It remains to be seen what happens later in the year.