Major Changes at iStock

On September 2, 2014, all microstock contributors and buyers working with iStock received an announcement about major changes on the platform. Since the message was in English, some may have missed it or skipped reading it—yet it’s definitely worth attention.

I translated the letter, and here it is for your review:

Since launching ten years ago, millions of buyers have chosen iStock for their projects thanks to our unique blend of high-quality content, affordable pricing, and ease of use. Over the years, we’ve improved many aspects of the experience to strengthen our relationships with customers.

We introduced premium collections, were the first to offer new content types like video and music, and led our industry with search and user-experience innovation. These developments have been highly valued by buyers and our contributor community, helping iStock remain a leader in the microstock universe—a space iStock itself pioneered.

We’re excited about the future and the next stage of iStock’s growth and market leadership, inspired by a world where more buyers need more visuals for an ever-increasing number of projects—distributed in countless ways, across numerous formats, and on a growing number of platforms.

All of this provides a strong foundation for iStockphoto to continue evolving. It also means we must adapt iStock to the needs of new customers, meet rising expectations from existing ones, and support higher-quality projects.

The launch of iStock’s new subscription offering in April of this year, together with sales support from Getty Images, has been a very successful step in this direction.

The new iStock subscription gives high-volume clients access to high-quality files for their projects. Buyer feedback has been very positive and exceeded our expectations.

In just a few months, this subscription has taken a significant share of our total sales and increased average spend per customer. The results also underline the strength of our unique and exclusive content, with more than three quarters of subscription sales driven by iStock Signature.

Returns from the iStock subscription confirm what we’ve long known—buyers value quality!

We will have a single payment method: credits.

• Credit pack sizes and prices will be simplified and aligned with the number and types of files a client can download.
• Credits will be repriced so it’s easier for buyers to see what they’re paying per file.
– Credit value will change: 5 current credits will equal 1 new credit after changes take effect. A conversion factor will ensure buyers receive an equivalent or better new credit pack. For example: 50 old credits will convert to 10 new credits;
– After conversion, usage of new credits will be reflected in Redeemed Credits as 5× the number used (i.e., their previous value);
– Because we’ll recalculate new credits in old-credit equivalents for Redeemed Credits, reporting metrics will remain unaffected.

All files will be split into two quality-based collections:

• Signature (premium) and Essentials (standard), aligned with our subscription offering:
– We will maintain a 3:1 price ratio between premium and standard images.
– We will unify pricing for photos, vectors, and audio:
▪ 1 new credit = 1 Essentials image, vector, or audio file;
▪ 3 new credits = 1 Signature image, vector, or audio file;
▪ 6 new credits = 1 Essentials video file;
▪ 18 new credits = 1 Signature video file.

No more price differences based on file size.

• Buyers will pay one price per file and can choose the size they need for their project.

Simplifying to two collections and two file types means:

• Vetta and Signature+ images will move into Signature, our premium collection for both single and subscription sales;
• Main will become Essentials, our standard collection for both single purchases and subscriptions.

Details by file type:

– Photos:

▪ Vetta and Signature+ images will move to Signature and will be included in subscription offerings;
▪ Selection criteria remain unchanged;
▪ Selected photos currently in Signature+ and Vetta will retain Signature+ status and search preference;
▪ Subscription downloads of Signature+ (including former Vetta) will be paid at Signature+ subscription rates;
▪ Vetta royalty rates will no longer apply; all files will be paid at standard rates;
▪ Former Vetta images will continue to appear in the Vetta collection on Getty Images;
▪ Existing and new Signature+ images will appear in the E+ collection on Getty Images.

– Video:

▪ Vetta video will move to Signature;
▪ Vetta royalty rates will no longer apply; all files will be paid at standard rates;
▪ Former Vetta videos will continue to appear in the Vetta Video collection on Getty Images;
▪ Exclusive videos will appear on Getty Images in the renamed Creatas Video collection (previously iStock Footage).

– Vectors:

▪ Vetta vectors will move to Signature;
▪ Vetta royalty rates will no longer apply; all files will be paid at standard rates;
▪ All existing and new exclusive vectors, including former Vetta vectors, will continue to appear on Getty Images in the renamed Digital Vision Vectors collection (previously iStock Vectors).

– Audio:

▪ Exclusive audio tracks will stay in Signature;
▪ Exclusive sound effects and simple loops will move to Essentials to remain competitive in their price segment;
▪ All non-exclusive audio will remain in Essentials.

Overall, these changes significantly improve iStock’s ease of use, search, and messaging. At the same time, they strengthen buyer value and pricing transparency while preserving the uniqueness of all exclusive content types on iStock.

Combined with your great work, cross-merchandising from Getty Images, and support from the global Getty Images sales team, we’re confident these changes will help iStock remain a market leader for years to come.

We’ve prepared topics for discussion on the iStock forums, and we also encourage you to read the note from Brad Ralph, Director of Content Development and iStock co-founder.

Update from September 3, 2014: credit prices will range from $8 to $15 depending on the size of the credit pack purchased. The larger the pack, the lower the per-credit price for the buyer.

The original can be found at: istockphoto.com/forum_messages.php?threadid=362716&page=1&sp_rid=&sp_mid=7029526