Monday, February 11, 2008

No bids?

The New York Times reports that the Getty Images auction "appears to be in jeopardy." There apparently haven't been any offers "significantly above its current market value of $1.6 billion."'s John Ogg says it's a business erosion story: "Getty Images has a business model that is at risk in a wiki world with low-cost of entry for start-ups. In fact, it has seen more competitors launch competing interests over the last 12 to 18 months than it can possibly fend off. ... The value of stock photos just isn't quite what it used to be. You just don't have to pay that much for digital stock photos anymore. Because of the long-standing contracts that Getty has with major sports and entertainment venues, there is still a value to this company. But that value is capped because no one needs to use their photos for news, travel, design, reference and more. Alternatives are readily available for one-tenth of the cost."