The Economics of Everyday Things: Episode 65 – Stock Photos

Host: Zachary Crockett
Guest: Yuri Arkurz, CEO and Founder of People Images
Release Date: September 30, 2024

1. Introduction to Stock Photography

In this episode, journalist Zachary Crockett delves into the ubiquitous world of stock photos—those seemingly generic images that populate our daily lives, from customer service chatbots to investment brochures and gym advertisements. Crockett sets the stage by highlighting the omnipresence of these images and questioning their economic and creative underpinnings.

Notable Quote:
"In daily life, you're surrounded by perfectly generic images."
— Zachary Crockett [01:05]

2. The Evolution of Stock Photography

Crockett traces the history of stock photography, explaining how it has transformed over the past century. Originally, newspapers and magazines commissioned photographers to capture specific images. However, in the mid-20th century, companies began to archive broad collections of photos, allowing businesses to license images for various uses. This method was cumbersome, relying on extensive catalogs and manual selection processes.

Notable Quote:
"They sent out these big catalogs where you had to go page by page and choose your file number."
— Yuri Arkurz [03:56]

3. The Rise of Microstock

The late 1990s and early 2000s marked a revolution in stock photography with the emergence of microstock agencies like Shutterstock and Adobe Stock. These platforms democratized the industry, enabling amateur photographers to upload and sell their work. Microstock introduced lower prices and fewer restrictions, expanding the market but also intensifying competition.

Notable Quote:
"Customers started choosing cheaper files with less restrictions."
— Yuri Arkurz [05:09]

4. Business Model and Economics

Stock photography operates on a licensing model where customers pay for the rights to use images, either through subscriptions or individual purchases. Photographers earn royalties based on sales, typically ranging from 15% to 40%. However, with millions of images available, the average payout per image is minimal, often just a few cents.

Notable Quote:
"Most stock photographers earn around 30 cents every time someone licenses one of their images."
— Yuri Arkurz [08:26]

5. Creating Stock Photos: Process and Challenges

Yuri Arkurz emphasizes the meticulous process behind producing high-quality stock photos. From concept development to execution, every shoot requires extensive research, planning, and investment. A single office-themed shoot, for example, can cost around $5,000 and yield over 100 images, with a break-even point of two to three years.

Notable Quote:
"We look at how much a shoot will bring in in its whole lifetime and have a rough idea about when it's going to break even."
— Yuri Arkurz [17:05]

6. The Role of Models in Stock Photography

Selecting the right models is crucial for creating relatable and versatile stock images. Unlike traditional modeling agencies that favor high-fashion looks, Arkurz seeks models who pass his "weekend test"—individuals who appear approachable and trustworthy. Diversity in ethnicity, age, and body types is also a priority to meet the varied demands of clients.

Notable Quote:
"The weekend test is essentially just that. You look at a person and just judging from their looks. You have to now decide really quickly if you would want to spend a whole weekend on a stranded island with that person."
— Yuri Arkurz [18:08]

7. The Future of Stock Photography: AI and Competition

The stock photography industry faces new challenges from free stock photo websites and advancements in artificial intelligence (AI). Tools like DALL-E and Midjourney can generate images based on text prompts, potentially reducing the demand for traditional stock photos. However, Arkurz believes that human creativity and the nuanced needs of professional designers still give human photographers an edge.

Notable Quote:
"AI is definitely a big shakeup. Is it a threat for the industry? Yes and no."
— Yuri Arkurz [24:41]

8. Notable Stories and Anecdotes

Throughout the episode, Arkurz shares intriguing anecdotes, such as stock photos inadvertently becoming internet memes. One such instance involved a photo of a woman smiling into the camera, which became the "Good Girl Gina" meme. Although unauthorized uses can lead to copyright issues, Arkurz views these viral moments with amusement rather than pursuing legal action.

Notable Quote:
"You can forget about trying to monetize that. It's not going to happen. You're going to have to just laugh."
— Yuri Arkurz [21:45]

9. The Intricacies of Keywording

To succeed in a saturated market, effective keywording is essential. Arkurz explains that each photo must be meticulously tagged with specific and sometimes obscure keywords to enhance visibility in search results. This process requires extensive knowledge and attention to detail, often involving research into specialized subjects like botany or weaponry.

Notable Quote:
"It's a very nerdy enterprise to be a keyword person. You've got to have this enormous, vast amount of common knowledge spelled perfectly, and then know all kinds of strange words and weird things."
— Yuri Arkurz [22:36]

10. Conclusion: Navigating a Competitive Landscape

Despite the increasing competition and technological disruptions, the stock photography industry remains dynamic. Successful photographers like Yuri Arkurz continually adapt by understanding market trends, investing in high-quality productions, and maintaining a robust portfolio. The blend of artistic vision and economic strategy is pivotal in navigating the challenges of this ever-evolving field.

Notable Quote:
"The better approach is to try to get ahead of your competitors by keeping a constant eye on trends."
— Yuri Arkurz [10:12]

Produced by Zachary Crockett and Sarah Lilly, mixed by Jeremy Johnston, with contributions from Daniel Moritz Rabson. Special thanks to listeners Callie Kumnick and Dylan James for their support.

This episode offers a comprehensive exploration of the stock photography industry, shedding light on its economic principles, creative processes, and the challenges posed by modern technological advancements. Whether you're a budding photographer or simply curious about the images that shape our everyday experiences, Episode 65 provides valuable insights into the hidden economy behind stock photos.