Why Getty Is Shifting to Royalty-Free Image Licensing

Recent changes in the stock photography industry have left many professionals wondering about the strategic decisions made by major players such as Getty Images. Getty has announced that, as of the end of January 2020, it will transition to a purely royalty-free licensing model. This decision has sparked discussions on the future of stock photography and its impact on both buyers and sellers.

Decline of Rights-Managed Licensing

According to Getty, the decline in rights-managed (RM) licensing has been observed over the past five years. This shift to royalty-free (RF) licensing aligns with a broader industry trend where greater emphasis is placed on flexibility and cost-effectiveness. The move to RF licenses is believed to benefit customers by providing them with a simpler and more cost-efficient way to access and use images across various projects and materials.

Understanding Royalty-Free and Rights-Managed Licensing

It's essential to understand the key differences between the two licensing models to appreciate Getty’s business strategy.

Royalty-Free Licensing

Under a royalty-free licensing model, users can pay one fee for a single license and then use the image as many times and in as many projects as needed. This model is particularly appealing for buyers seeking flexibility and cost-savings. Additionally, the Alamy photography library allows photographers to choose the licensing options for each image, making it even more customizable.

Standard Fixed-Rate Licensing

Another popular licensing type is the standard fixed-rate model, which is similar to the RM license. Here, the user pays a fixed fee for specific rights of use, such as using the image in a certain context, such as a website or magazine. This model provides more flexibility than RM licensing but is also more expensive and involves more paperwork.

The Future of Getty Images

The transition to RF licensing marks a significant shift in Getty's business strategy. This move reflects a growing trend in the industry towards more flexible and cost-effective licensing models that benefit end-users. Given the current market dynamics and consumer preferences, it’s crucial for Getty to adapt and remain relevant.

Impact on Photographers

While RF licensing offers benefits to buyers, it may have implications for photographers. With the transition to RF, photographers may receive lower payments per image. However, photographers can mitigate this by diversifying their income streams, promoting their work through personal websites and social media, and utilizing other forms of licensing such as RM.

Conclusion

Getty's decision to shift to a royalty-free licensing model is a strategic move driven by market trends and changing customer preferences. While it presents challenges for photographers, it also opens new opportunities for users seeking more flexible and cost-effective solutions. As the stock photography industry continues to evolve, it will be interesting to see how other major players in the market respond to these changes.