Editorials
Interview with iStockphoto Founder and CEO Bruce Livingstone
Recently I had the good pleasure of sharing a few drinks with Bruce Livingstone (the undisputed king of microstock) at a crowded noisy bar in Manhattan. At 35 years old Bruce Livingstone is a pioneer in the world of stock photography having created iStockphoto, the first successful micropayment stock licensing business. After selling iStockphoto to Getty images last year for $50 million, Bruce continued as the CEO of the business and appears to have retained much of the passion that drove him as an entrepreneur. As one might expect Livingstone has become a very busy executive who graciously consented to answer a few questions about his recent success and future plans for the business.
abouttheimage (ATI): How was iStockphoto launched and what lead you down this path?
Bruce Livingstone (BL): The idea for iStock was loosely based on my time at Image Club Graphics in 1995 where I used the FirstClass BBS to make an e-commerce site where clip art and fonts could be purchased online. They didn’t like the idea, so I kept working on it over the next few years.
The only problem with going out on my own to start this business was that I didn’t have anything to actually sell. I started a design company (http://evolvs.com) and a hosting company (http://webcorelabs.com) and worked on my photography skills in my spare time. In 1998-99 I made 4 volumes of CD-ROMs and launched a boutique stock photo site called Frequency Labs. I didn’t have the cash to take it to market effectively. I was pissed off and bitter and decided that instead of giving up, I would give everything away for free. iStockphoto was born on April 7th, 2000. It started as a photo trading website based on a credit system. It’s a significant date because it marks the birth of the concept of micropayment stock photography. The early marketing was all viral and we relied on our friends like Jeffrey Zeldman to blog about us (before there was any concept or name for a blog).
(ATI): iStockphoto was once a site where the only way to earn credits was to submit content and share in the community. Much of your success can be attributed to the fact that you abandoned this concept in favor of offering the images for $1. What motivated this change?
(BL): The motivation to monetize was driven by a hosting bill we received in 2000 for $10,000. We had to make the decision to cover our costs and monetize, or shut it down. The community, although small at the time, supported the idea of putting a price to the credits. At the time it was 25 cents and we returned five cents to the contributor (20%). It wasn’t until 2001 that we started charging for credits. In 2003 a credit was 50 cents. Eventually we started selling different resolutions at $1, $2 and $3.
(ATI): Are most of your contributors professionals or amateurs? Do you see this evolving in the future?
(BL): We have our own economy, convention, culture and language which goes beyond traditional labels because foremost to everything is a passion for and appreciation of great imagery. If I were forced to give you an answer, I would say that most new members to iStock join the site as amateurs and enthusiasts, and those who have accomplished a lifetime of sales like Lise Gagne (http://www.istockphoto.com/lisegagne) are professionals. As of today (Feb 22, 2007), she’s sold 435,151 images. That’s surely the pedigree of a professional. We just call her diva. She has dedication to what we’ve created together that transcends any kind of corporate or conventional classification or label. In the future the industry will no longer think in terms of amateur or professional. Sales will be based solely on the attributes of the image, illustration or video, regardless of societal indication.
(ATI): Some exceptional contributors have managed to make a fair amount of money with micro-stock, but can the majority of contributors really expect to make a living from it? Can you provide a few good examples?
(BL): Diane Diederich (http://www.istockphoto.com/diane39) is the mother of two children and she recently wrote me a note to tell me that her iStock earnings have helped put both of them through university and paid for her dream house. Lise Gagne, our most successful artist will make somewhere between $100 -$200k USD this year. The list is long; there are too many examples of success to discuss here. Joe Justice (http://www.istockphoto.com/nojustice) is a policeman who says that in his fifties he’s looking to retire early to follow his lifelong dream of opening a photo studio, using his iStock earnings to pave the way for him. Even illustrators are making a killing on iStock when almost everyone in the industry thought creating ‘clip art’ was dead.
Check out Simonox http://www.istockphoto.com/file_search.php?action=file&userID=302391 or Russell Tate http://www.istockphoto.com/file_search.php?action=file&userID=566747 to see the high caliber illustration we have on iStock.
(ATI): We know some pros submit to micro-stock. What is the ratio of pro photographers to amateurs on iStock?
(BL): Ha ha, I have no idea. It depends on whom you consider a pro. People on iStock have had thousands of images published, some on magazine covers, by record labels, TV, Oprah, Billy Graham, the Tyra Banks Show, Stargate SG-1. I think it’s safe to call them professional, but they’re also engineers, real estate agents and students. Sure we have people that only work with iStockphoto and fit the classical definition of a professional photographer, but I think there are many more artists here who are creatively reinventing what it means to be a pro.
(ATI): Are some productions too expensive to offer in micro-stock? Especially where many models are involved?
(BL): There will always be a need for highly art-directed shots, but our contributors seem to have no lack of models. The research division of Getty Images is an example of the kind of market research that iStock cannot and does not provide, in terms of industry trends and where the stock image gaps are. However, the best part about iStock is that we’re tapped into a network of real people and models who love to have their pictures taken, love to be a part of a movement and just want to be involved in something significant and life-changing. The iStock community relies on ingenuity, creativity, and, as a whole, are very budget-conscience. That being said, iStock artists do spend quite a bit setting up shoots with models and locations, but the budgets are usually smaller than at traditional stock houses.
A couple of times a year iStock holds events called “iStockalypses.” An iStockalypse is a social and creative gathering of photographers in an interesting or exotic location. Last year we shot in Barcelona over three days in fifteen different locations, with 80 models provided by fotopunto.com. The staff also included five makeup artists, wardrobe designers and stylists. It was our most ambitious event to date and generated more than 10,000 images. Here’s a lightbox to view this event. We’ve also had events in Prague, Las Vegas, New York and Slovenia to name a few. Each time we have an event, we can expect around 50 photographers to attend from all over the world.
(ATI): Any plans to create wholly-owned content to offer on iStockphoto?
(BL): No, that’s not our model.
(ATI): How do illustrations fare on the site? What percentage of the collection is made up of illustrations?
(BL): Illustrations do incredibly well on iStock. They make up less than 5 percent of our total files, but make up a proportionally much higher percentage of sales.
(ATI): The rate of submissions is incredibly high. How can you maintain quality standards with that many images coming in so fast?
(BL): We have 75 inspectors (similar to photo editors) who are highly trained in copyright, trademark, trade dress and releases that look at every single file that comes on the site. These people, who hail from six different continents, look for quality, technical and legal issues and are constantly moving new images for sale. We have similar inspectors for vectors and video.
(ATI): What are you doing that makes iStockphoto stand out? What do you think of the many other micro-stock sites that have popped up?
(BL): We innovate like hell, have bar-none the strictest quality considerations and legal checks in the industry; we market like crazy and look good doing it. We set the trends and everyone else follows. Many of the other microstock players were members at iStock in the past. I predict that 25% of those micros will disappear this year or be acquired.
(ATI): How has the footage business been going? Does it have the potential to reach as many buyers as the still image side of the business?
(BL): iStockvideo.com is one area of growth in our business that is exploding. Our contributors love the payouts and we can’t get the clips on the site fast enough for our customers. Keep an eye on this space. We reinvented the photo industry and we’re poised to do the same for footage over the next few years.
(ATI): iStockphoto recently discontinued its Custom Stock service. What happened?
(BL): We found it distracting to the core of our RF business and other priorities. The program was shelved, but we just may see it return in some other form in the coming years. With limited programming resources, sometimes you have to make those tough decisions.
(ATI): Any plans to offer Fonts, Music clips, Editorial Content, subscriptions, Etc…
(BL): Anything is possible, but I don’t have any announcements for you.
(ATI): Do you agree that micro-stock will not have as adverse an impact on the “conventional” stock licensing business as some people think?
(BL): It’s clear that there is some crossover, but we believe we created a model that didn’t exist before. We give artists an open marketplace to sell their work into a huge sales channel that they could never reach on their own. iStock also leveled the playing field for designers, small-to medium-sized businesses and non-profits to license images and look like pros, where they didn’t have the budget to buy higher priced images from those conventional places.
(ATI): Could the micro-stock business model eclipse traditional stock licensing models at some point?
(BL): It depends on exactly how you define eclipse. If you mean by sheer volume of images sold, that’s probably already happened. iStock licensed 3.5 million images in the last quarter of 2006.
(ATI): How long do you expect the phenomenal growth of iStock’s sales (downloads) to continue?
(BL): How long is a piece of string?
(ATI): You recently increased prices on the site. Is this the beginning of a trend?
(BL): Our prices reflect the cost of operation, marketing and growth. We may have increased prices for smaller images, but we also reduced the price of our XXL images. We also have to strike a delicate balance between our contributors’ requirements and our customers’ need for exceptionally priced images.
(ATI): What territories outside North America hold the most promise for iStockphoto?
(BL): Europe already makes up a very large part of our community and sales at iStock. We’ll continue to grow there, but will also be launching iStockphoto.jp in the summer of 2007. Japan is potentially a very interesting market for us.
(ATI): How has life at the company changed since being taken over by Getty? How have the two companies been structured? Are there any cultural divides between the two businesses?
(BL): Jonathan Klein and I have a great working relationship. Getty Images lets us operate almost completely independently from the Seattle office, but we’re in touch regularly. The only real change in operations is that being part of a public company is slightly more demanding in terms of financial projections, planning and reporting. Thankfully we have an incredible staff that outperforms at every turn. And no one knows more about the industry than Getty Images. They’ve been a huge help in accelerating the growth of the business as quickly as we have.
(ATI): Recently diamond level contributors were offered a Getty contract. Any indication yet on how well the “farm team” approach is working out? Are the successful iStock shooters faring as well as contributors to the higher end part of the business?
(BL): The first iStock images will start hitting the Getty Photodisc collection at the end of the month. We’re very confident that relationship will prove to be extremely valuable on both sides.
(ATI): How important is community to your business? What percentage of your time is spent on community focused initiatives?
(BL): The entire business is based on community—they are both our suppliers and customers. Most of my time is spent on community initiatives, relationships and development.
(ATI): As a pioneer in the concept of crowd-sourcing how do you see this concept evolving? Is this the beginning of a business revolution?
(BL): Absolutely. I recently met Jeff Howe in person after writing a two part article for his web site (see http://www.crowdsourcing.com) called “Commercializing Community.” I think we both believe that the model of crowdsourcing can be viable for many industries. The most immediate possibilities for crowdsourcing revolve around digital media, but it can be adapted for many industries and concepts. In the coming years I think it’s possible we may see everything from crowdsourced legal work to crowdsourced construction. The possibilities are endless.
Part 1
http://crowdsourcing.typepad.com/cs/2007/01/commercializing.html
Part 2
http://crowdsourcing.typepad.com/cs/2007/01/commercializing_1.html
(ATI): I noticed that you have a Getty Images tattoo on your wrist. What’s that all about? What other tattoos do you have?
(BL): When the Getty Images deal was in the works I decided to commit myself to the idea. I would send Jonathan Klein images of my wrist and tell him, “Don’t make me regret this or have to add another word after it!” I’m a walking trademark violation.
I have many tattoos. At a Vegas tradeshow as a stunt one year, I had a pinup girl tattooed on my arm, draped with http://www.iStockphoto.com. We then handed out 10,000 temporary tattoos and saw people wearing them all over town.
(ATI): You mentioned that you like classic muscle cars. Which cars are your favorites? What are you currently driving?
(BL): In my garage I have a 1969 Camaro SS, but I also have several Corvairs from the 1960’s, including a Greenbrier Van.
(ATI): Due to recent success you seem to have become a world traveler. What places are the most memorable?
(BL): It’s a toss up. I could spend the rest of my life in Slovenia and the Czech Republic. The people are really friendly and run at a totally different pace than North America. Ljubljana has to be one of the more memorable places I’ve been. Then again, Copenhagen was really cool too.
(ATI): As a contributor to iStockphoto, what images are you most proud of?
(BL): Pictures of my girlfriend sell really well. She’s the best model I’ve ever worked with. This particular shot was taken in the subway in Prague. It almost took off her thumb http://www.istockphoto.com/file_closeup.php?id=734874
This is one of my mother on the beach from the 1960’s http://www.istockphoto.com/file_closeup.php?id=422
(ATI): Besides business what are you passionate about?
(BL): Surfing, independent music and art
(ATI): Favorite Artists?
(BL): Cindy Sherman (http://www.cindysherman.com/)
Ed Burtynsky (http://www.edwardburtynsky.com/)
Robert Rauschenberg
John Baldessari
(ATI): Favorite Book?
(BL): 33 Strategies of War by Robert Greene (http://www.amazon.com/33-Strategies-War-Robert-Greene/dp/0670034576)
(ATI): Favorite Movie?
(BL): Bearskin starring Tom Waits (http://imdb.com/title/tt0096901/)
Manufacturing Consent: Noam Chomsky and the Media (http://imdb.com/title/tt0104810/)
The Science of Sleep (http://wip.warnerbros.com/scienceofsleep/)
(ATI): Favorite musician? What’s on your iPod/CD player right now?
(BL): You Say Party! We Say Die! (http://www.yousaypartywesaydie.ca/)
Scissors for Lefty (http://www.scissorsforlefty.com/)
Battle of Mice (http://www.battleofmice.com/)
The Deadly Snakes (http://www.intheredrecords.com/pages/deadly%20snakes.html)
The Buzzcocks (http://www.buzzcocks.com/site/index.html)
TV on the Radio (http://www.tvontheradio.com/)
Posted in: Editorials, Interviews, Stock Photo Companies
