Industry Analysis: Are Digital Cameras Impacting the Stock Image Market?

CreativePro Staff

Every year, TrendWatch GA takes a look at the stock image market, and this year is no exception. What is unusual this year is that there is so much to say that we released two separate reports: one on stock image use by printers, publishers, and Internet design and development firms; and another on stock image use by creatives.
Another difference this year is that, in addition to looking at the usual suspects, such as respondents’ plans to purchase various types of stock images by format and price point, we also looked at the impact that digital photography is (or isn’t) having on each of these markets.
Investment Is Up
Along these lines, there are three major points of interest:
1. Planned investment in digital cameras is up across the board. Among publishers, it is up from 21% to 27% over a four-year period. Among creatives, it is up from 24% to 41% over an eight-year period. Among printers, it is up from 12% to 22% over a nine-year period. And among IDD respondents, it is up from 36% to 42% over a four-year period.
2. Despite the growth in purchases of digital cameras, planned purchases and use of stock images also continue to rise. Among creatives — the largest market for stock images — the percentage planning to purchase rights-managed images in the next 12 months has risen from 26% to 38%; and the percentage planning to purchase royalty-free images has risen from 27% to 64%. So if digital photography is having any impact, it is only to slow the growth of an already fast-growing market, and even then, not noticeably.
With these two established trends in mind, we look for why these dynamics might be occurring simultaneously. We find the answer in several key trends in the stock image market in comparison to the price points of the digital cameras that are being purchased.
First, royalty-free images are of extremely high quality these days. They are interesting, edgy, and full of variety. This means that rights-managed images have had to step it up, as well. Because many creatives purchase these images, not for the rights, but simply for the extra edge, the prices associated with these images are for the image use only. Like batteries with your children’s toy, the rights must be purchased separately.
So, in part, the growth we see in our data for rights-managed images may be due to the need for rights management; but it may also be due, in part, to the need of creatives keep their projects a step above the always-increasing quality of royalty-free images.
Now back to our third point from our data.
Close But No Cigar
3. Planned purchases of digital cameras are skewed toward the low to mid-ranges of the market. While these cameras are capable of producing nice quality for non-critical work, they really aren’t capable of producing the resolution necessary for reproduction at larger sizes.
As just one example, while 20% of publishers plan to purchase a digital camera primarily for print production work, only 1% plan to purchase a high-end camera (over $10,000). The plurality (8%) plan to purchase low-end cameras, under $1,000, which are not capable of capturing images that can compete with today’s high-res stock images unless they are printed quite small.
Where you might expect digital cameras to compete with stock photography is the Internet, where the volume of images is high and the resolution requirements are low. And yet only 4% of publishers plan to purchase a camera primarily for Internet production work in the next 12 months.
This trend exists in all of the market segments surveyed by TrendWatch GA. In all markets except printers and trade shops, where mid-range cameras ($1,000 – $5,000) are the most popular, respondents are most likely to purchase cameras under $1,000.
The Moral of the Story
The moral of the story? Stock has little to fear from digital photography these days. Not only are creatives purchasing cameras on the lower end, but there is still the issue of photographic skill. Just because these cameras eliminate the use of film, they don’t eliminate the basics of photography, including knowledge of lighting, exposure, sets, and a good photographic eye.
And that’s good news for the stock image market.
For more information on TrendWatch GA’s stock image reports, “Stock Images 2004: The Creative Markets” and “Stock Images 2004: The Printing, Publishing, and Internet Design & Development Markets,” visit TrendWatch GA’s website at www.trendwatchgraphicarts.com.

Figure 1: Percentage of Creatives Planning to Purchase Stock Images, by Type, Over TimeSource: TrendWatch GA Historical Database