Anyone following the mess happening at iStockPhoto?
 

Earlier this week they came out with a new royalty structure. Under their old system, contributors were in commission scales based on the total lifetime accumulated sales of their content. Under the new system, it got switched to a year-by-year basis and barely anyone had indicated they would be getting a higher percentage royalty or their rate staying the same. They have literally 1000+ pages full of posts from contributors saying they're going to go down at least 5% in royalties (11.1% to 25% or so in lost revenue) and some I've seen as high as 15% (37.5% to 50% or so in lost revenue). More importantly, people were before working up to particular levels over time - this new system does away with that entirely.

The way they DID this is even more abominable.

Sept 7: Thread 1: The announcement:
http://www.istockphoto.com/forum_mes...=251812&page=1. They:

- Make an announcement of a huge confusing new royalty scale
- Say things like "would not change most contributors' total compensation (except for the better)" and other only positive things about it.
- Say they're allowing outside agencies to contribute to the site, further fucking the "little guy" but again state everything as a positive happening

Sept 8: Thread 2: The follow-up/explanation (after over 1,000 responses of complete negativity in the announcement thread):
http://www.istockphoto.com/forum_mes...=252322&page=1 They:

- Attempt to make a very silly explanation as to the royalty changes: "Since roughly 2005 we've been aware of a basic problem with how our business works. As the company grows, the overall percentage we pay out to contributing artists increases. In the most basic terms that means that iStock becomes less profitable with increased success. As a business model, it’s simply unsustainable: businesses should get more profitable as they grow. This is a long-term problem that needs to be addressed."

- "According to our projections 76% of Exclusive contributors will either retain their current royalty rate or move up." Despite a 1,000+ page thread with plenty of such contributors saying otherwise.

- "But, we expect to see our total royalty payout increase by more than 30% next year, from $1.7-million per week to well over $2-million per week. Make no mistake, the total amount of money iStock contributors are making is going up." wat

50 mins ago, Thread 3: "Where we go from here" (after over 3,000 responses of complete negativity in thread #2):
http://www.istockphoto.com/forum_mes...=253522&page=1

- They go through their own history with rose colored glasses, as if anyone gives a shit.
- They go into all the lives they've changed, most of which they've probably just screwed
- "But money isn’t going to be what makes you all happy. You want to know that this is still the best place to be, to hang out, and sell your work. You may not be convinced today like you were last week, but it’s our job to make sure you feel that way again soon"
- That after repeating: "iStock contributors are earning $1.7 million each week. That number still stupefies me (I wish I could let the 2004 me know!). We expect to bring that number up over $2 million next year."
- Already 7 pages, most people pretty much saying "fuck this, I'm leaving".

Is September PR Disaster Month or something? I've never boycotted anything in my life but iStockPhoto may be the first...I have bought images there on a number of occasions but after this debacle, I think I may support the contributors by going elsewhere.

i stopped shopping at istock beginning of this year. always loved their stuff too. :(

fuck 'em

I prefer big stock and crestock

Looks like they're stealing a page out of every corporate and governmental "change for the better" that I see in the news on a daily basis. Like how smart meters will "save you money during off peak hours" or how tracking your car by GPS to pay for things like parking and car insurance will "save you money on that two weeks you were in mexico and didn't drive your car"....(but cost you more the other 350 days a year...)

Or how they released digital cable boxes, and now half of everything you'd want to watch isn't available on regular full cable anymore.. This year I think about half of all raptors/leafs/bluejays games are only on premium pay-extra stations.. While I may not mind so much, how many grandparents are on a fixed income and don't even get to watch the baseball games anymore..

It's sad really. What really confounds me is since everyone seems to need to squeeze their customers to death in 2010, what's it going to be like in 20 years when my kid is 10 years younger than I am now? And I'm only 29? How can they possibly keep funding what they can't fund now?

You think things are falling apart now? They've only started...

I wonder if they did ANY market research for this new system or did some corporate AHole just say "I like it - do it".

cool. there are other industries that just fuck each other. now i dont have to leave this one.

hell yah!

I was just approved to sell there but haven't yet. I'm not sure the best path now. I know from a webmaster perspective that I got ticked when the credits you buy suddenly had a year expiry.

Greed ultimately ruins many things. But it seems we never quite get it. :2 cents:

may be they are trying to break even

Yea, that annoyed the crap out of me too. All of a sudden get notified that some couple hundred credits I had left were up in a couple months.