What industries will be effected by crowd-sourcing?
Thursday, May 21st, 2009Jeff Howe writes about crowd sourcing and how some sites are getting designers to work on spec:
So one might expect crowdSPRING and 99designs to wither away like so many other seemingly ill-conceived Web 2.0 start ups. Instead, they seem to be flourishing. 99designs says it has paid out over $4 million to its community of 30,000 artists, and crowdSPRING expects to be profitable by next year. The success of crowdsourced design has sparked a vibrant, highly emotional debate within the design industry.
Alarmed by the popularity of the spec model, a group of designers formed a protest group called NO!SPEC to persuade their colleagues (and prospective clients) to just say no to design contests.
He make the point that what is now happening to design is what earlier happened to stock photography:
iStockphoto and other so-called “microstock” agencies capitalized on a similar disparity. The result was the total disruption of the $2 billion stock photo industry. iStock is now the third-largest purveyor of stock images, and some 96 percent of its “workforce” is comprised of amateurs. In my crowdsourcing book I posed the question of whether stock photography was an isolated case, or just the canary in the coal mine. It was an open question as of April 2008 when I submitted the final changes to my galleys. Now it ain’t. The canary is prone, lying motionless on a bed of its own droppings. It looks like it’s time to find another mine.
My dad was a stock photographer during the golden years, 1950-1990, when it was possible to make really good money doing stock photography – adjusting for inflation, 6 figure annual incomes. That began to change in the 90s, due the proliferation of royalty-free images, and distribution over the Internet (some of the same forces that re-shaped the music business). And then, there was the incredible consolidation of the business. An industry that had been made up of hundreds of small and mid-sized businesses consolidated around just 2 giants: Corbis and Getty.
Getty, in particular, acquired a reputation for offering harsh contracts to photographers. My dad was irritated that they offered “on spec” contracts, where sometimes the photographer was asked to shoot a subject, but had no guarantee of pay, or inclusion in the collection. My dad never signed such a contract, but rather, continued to work with some of the smaller stock agencies that remained independent. But these firms all suffered declining revenues.
The new micro-stock royalty free web sites are again transforming the business.
By the way, this is off-topic, but I find it amusing. Be careful what you photograph:
Thibaud Elziere, the CEO of micropayment site Fotolia, was detained by police for eight hours after he took a photo of a security camera at the French Prime Minister’s residence.
According to a posting on the Fotolia company blog, Elziere was testing a new camera while on a walk in Paris on Sept. 21. Police officers stopped him when they saw him snap a picture of a security camera.
According to the blog, Elziere didn’t realize he was photographing something sensitive. He explained to the police who he was and what he was doing, and deleted the picture from his camera as an act of good faith. Police checked his background before releasing him eight hours later.