Shutterstock online photo deal of case studies Wen / Li Xue start with some simple understanding of intuitive data Shutterstock website at: 10: Shutterstock website supports 10 languages; 150: active users are located more than 150 countries; 10,000: the number of new pictures every day more than 10,000; 35,000: content (including photos, illustrations, video, etc.) supply-side over 35,000; 550,000: more than 550,000 paying customers; 20,000,000: total number of pictures more than 20 million; 250 million: total number of downloads more than 250 million times. This article from the six aspects goodwill model, competitive advantage (moat), investment risk, growth strategies, interpretation and valuation of financial cuts, the main points include: a business model: supply and demand ends of the electronic library of contact to become online trading The platform, with the supply-side revenue sharing; 2 charging modes: subscription and on-demand is characterized by profit batch mode, you need customers to pay in advance for the operator to provide a stable cash flow; 3 competitive advantages: Content accumulate and cash flow call adequate; 4 investment risk: homogeneous competition, localization challenges and price increases narrow the like; 5 Growth strategy: strengthening the localization and expand large institutional customers and new types of electronic content; 6 Financial Interpretation: Customer and paid download revenue and profit increased to promote rapid growth; the nature of a business model is the use of the Internet channel Shutterstock do platform, contact the supply and demand ends: Image suppliers (photographers, illustrators, photographers, etc.) to upload content (including images, illustration, video, etc.) to Shutterstock, picture demand side (business customers, marketing agencies, media organizations as well as the needs of long-tailed users with pictures) to find the desired pictures Shutterstock. Shutterstock attract suppliers features include paying customers worldwide, efficient image uploads and real-time feedback and online communities; the demand side include means to attract high-quality pictures authorization, superior search experience and results as well as easy, affordable The payment. The entire online transaction chain can be divided into four steps: image suppliers Shutterstock upload photos and vetted → Image demand side Shutterstock search and find what you want in the picture → demand side by pre-paid plan and picture download pictures → Shutterstock suppliers Cooperation divided. 1. charging Shutterstock offers a variety of charging models, including subscription and on-demand as the characteristics of the bulk low-profit model that one can reduce the unit price of a single charge, thus contributing to increase sales, on the other hand needs of customers advance payment, which can provide a stable cash flow for the site. - Subscription service: download 25 times per day for up to one month, three months, six months and 365 days in advance different deadline to pay a subscription fee. Revenue from subscription services accounted for about 50%. - On-demand: This type of picture based on picture size and other needs, within a year can be downloaded at any time. Revenue from such services accounted for about 40% - Other: In order to meet the diverse needs of customers, Shutterstock different payment options can be Cosplay Costumes developed according to the customer demand.
Revenue from these services accounted for 10%. Comprehensive Shutterstock charging mode, the user fee is paid for each picture average $ 2, it is this low-cost strategy makes its commercial electronic picture market demand and trading volume continues to expand. 2. The revenue sharing model mainly from supply-side content (including images, illustrations, vector art and video, etc.) the number of authorized downloads, most pictures are downloaded as Shutterstock standard licensing model that each picture each time you download (or authorize the use of) supply-side revenue gained $ 0.25 - $ 2.85. Suppliers get into the level of income depends on three factors: the different modes of profit plan, suppliers and users to purchase long program at Shutterstock contribution. In the advanced licensing model Supply side each picture available $ 28 per download revenue, other purchase programs and licensing models, based on availability, longer contribution at Shutterstock, get 20% to 30% of sales revenue. Video content suppliers and is based on the number of authorized downloads to get revenue, a 30% per download sales. Two competitive advantage Shutterstock competitive advantage is mainly reflected in the accumulation of content, and more adequate cash flow. 1. Content accumulate Shutterstock Image cumulative growth in the number of 2.6 million from 2007 to 2011 of 17.4 million, as of now has more than 20 million of the total picture. Content accumulate like a snowball, the more content, the greater the awareness, the more they can attract more content suppliers upload work, and a lot of work but also to meet customer demand for the use and download to a greater extent, thereby creating more value . Do a little random experiment, October 17 Japanese in the number of high-profile gallery site search 'cycling' all related images, search results are shown, including the results of Shutterstock is 46000, Corbis closely followed by 45000 , Getty ranked third with 25,000. In addition, Shutterstock works site transactions, including quality, commercial and relevance etc. 100% after a rigorous qualification. First, Shutterstock will be carefully selected suppliers of content. Want to be the supplier must apply to Shutterstock, you need to have a detailed profile and portfolio. According to statistics, more than 375,000 people apply, but by less than 40,000 people, the pass rate of less than 11%. After the application by becoming suppliers to customize upload pictures. However, Shutterstock audit team will upload every picture review will examine the use of patented technology to filter photos and other works to improve examination efficiency. There are approximately 38 million pictures submitted, but only 20 million pictures passing through rate of 50%. In addition, suppliers need to work through a review of each paste keyword, the average work about 30 keywords, far Shutterstock database keyword more than 650 million. After passing through a series of review, Shutterstock ensure each picture is fully licensed and can be commercially available; and to use pictures to provide the highest $ 10,000 security deposit (for customers to use images may cause legal costs or other losses, to provide security ). 2. Cash cow cash by the end of 2011 Shutterstock $ 4.94 million in 2009 increased to $ 14.1 million, mainly due to deferred income from the net profit and growth. Cash flow from the operations made $ 27,150,000 in 2009 increased to $ 39.55 million in 2011; where cash from the $ 18.84 million net profit in 2009 increased to $ 21.86 million in 2011; cash deferred revenue from by $ 3.94 million in 2009 increased to $ 8.82 million in 2011, deferred revenue from the purchase by paying a user fee program in order to pay in advance or on-demand model used. Three investment risk Shutterstock risk is mainly reflected in the highly homogeneous competition, localization challenges and narrower price increases. 1. homogeneous competitive Shutterstock electronic library where barriers to entry are relatively low, from a content provider side, the fact that most of the means of subsistence to Gallery content suppliers (photographers, illustrators, photographers, etc.) will be in multiple library uploads to gain more profit by selling pictures of several websites and library sharing. Look at a photographer in June 2012 the income share data from different gallery (shown below Source: http: //microstockinfos.blogspot.com/2010/12/stock-photography-sales- statistic. html # comment-form), in a variety of factors income photographer Gallery acquired its different amount of content uploaded, the site's sharing model and other related sales. 2. The price increases are mainly taken Shutterstock narrower profit batch mode, users pay an average cost per image is $ 2, the low-cost strategy makes the demand of its customers and to expand trading volume, however, the more room for price increases narrow, so the future development space mainly to improve the quantity and downloads Gallery. However, when the content of the major library of more homogeneous competition, when the already meager profit pictures online trading model on how to maintain sustained growth worth considering. 3. Localization challenge Shutterstock currently over 550,000 active subscribers, where more than 150 countries and regions, is increasingly becoming a global company, to expand the scope of the main service areas in order to stimulate the supply of and paid image downloads to stimulate revenue profit growth. However, because of the above mentioned low threshold of the industry, business globalization, while local companies will inevitably encounter various markets intense containment. Moreover, competition in the local companies have more than two disadvantages: First, the lack of local content accumulation; the second is the lack of good local suppliers and customer relationships, both of which are required to accumulate a long time. China, for example, library sites like CFP, panoramic images, oriental IC, etc. are also emerging, in terms of content and customer resources have accumulated quite a lot of advantages, the world's largest library Getty Images company to enter China and Chinese companies adopted a vision eva wigs Chinese (VCG) Getty Images establish a joint venture company, the joint venture company in China on the one hand the agent Getty huge library resources, on the other hand is also working closely with the best photographers in Asia and the Chinese mainland, China continued to add a lot of quality content elements to meet diverse needs of customers.
Currently Shutterstock website also has Chinese service, but the advantage is not obvious. Four growth strategies can be seen from the above analysis, price increases Shutterstock Microstock narrow trading patterns, then the future growth strategy will mainly increase the size of picture deal, strengthen marketing, improve the user experience and strengthen the localization of targets that this; also includes pioneering video and other new content and media organizations and other large customers. 1. Enhance online and offline marketing: Shutterstock current customer growth mainly from interpersonal communication, and active SME (SMB) customers worldwide accounted for a small share; future plans to expand the library supply and provide special services continue to create a good reputation, in addition, will be expanded by increasing brand awareness online and offline marketing investment. 2. Improve the existing user experience: through the accumulation of library information users to browse and download habits, and grasp of the market and customer needs, Shutterstock continues to improve the quality of search algorithms and user experience, in addition to the supply side to provide more gallery tools that allow them to better manage content production and tracking, release new products to increase relations between the supplier community and continue to attract new users. 3. Strengthening Localization: Shutterstock becoming a global company, the range of content of supply and demand side than 150 countries and regions in the world, the language version of the site there are 10 kinds, plans to improve the user experience and deepen global penetration. In addition, local considerable untapped demand, plans to increase the supply of content and rich areas in order to meet the growing global demand of users. The expansion of media organizations and large corporate customers: Up to now, Shutterstock most of its revenue comes from online purchasing behavior of SMEs, while revenue from big business or organization less than 10%; plans to offer flexible payment scheme direct sales for large companies, thereby increasing revenues. 5. develop new types of content: Currently, in addition to the electronic image, the video clips or video of the growing market demand, Shutterstock will continue to explore new areas of electronic content, to provide users with more content. Five Financial Interpretation to financial interpretation to the contrary, the business model, Shutterstock revenue sharing, the key is to increase the bulk particle pattern paying downloads, interpretation earnings from previous years can be seen, its subscribers, downloads and have achieved average revenue growth per download, thus contributing to revenue and profit growth; and development revenue accounted Gallery from industry more mature US and European markets over the years were 30% and 40%. 1. The revenue and profit growth momentum: paying customers, downloads and average revenue per download revenue growth from $ 30 million in 2007 to $ 120 million in 2011, holding 41.49 percent compound annual growth rate of 2012 half revenue grew 43.78% to $ 78,199,000. Revenue growth over the years, mainly due to the number of paid downloads and average revenue growth per download, premium growth was mainly due to increased number of downloads of customers, average revenue per download-demand growth is mainly due to the growth. Shutterstock Total Downloads 33 million from 2007 to $ 204 million, which in 2010 and 2011 downloads were 44,100,000 and 58,600,000; average revenue per download were $ 1.88 and $ 2.05. In addition, Shutterstock less reliance on large customers, before the 2011 contribution of 25 customers by revenue total revenue accounted for less than 2%. Gross interest rate, since 2007 has been onegai teacher wigs maintained at over 60%. Operating profit, from $ 5.92 million in 2007 to $ 22,890,000 in 2011, holding 149 percent compound annual growth rate in the first half of 2012 representing a decrease of 7.7 per cent to $ 10 million. Operating profit margins, 2007-2011 were 1.97%, 39.00%, 32.32%, in 2011 and the first half of 2012 were 23.86 percent, 19.03 percent. Net profit, from $ 1.91 million in 2007 increased to $ 21,864,000 in 2011, holding 227 percent compound annual growth rate in the first half of 2012 representing a decrease of 5.8% to $ 9,782,000. Net profit rate, 2007-2011 were 0.64%, 37.25%, 30.84%, in the first half of 2011 and 2012 were 22.82%, 18.18%. 2. Revenue areas: the United States accounted for about 30% of revenue over the years, about 40% in Europe in 2011, accounting for 34% of revenue in North America, South America accounted for 9%, 43% throughout the Americas; Europe in 2011 revenues ratio from 41% in 2010, slightly approaching 40 percent, the Middle East and Africa accounted for 6% of the entire EMEA (Europe, Middle East and Africa) accounted for 46 percent; Asia and the Pacific Rim accounted for 11% of revenue. American in 2009, 2010 and 2011 revenues accounting for respectively 32%, 31% and 30%, the first half of 2011 and the first half of 2012 were 30% and 32%. Moreover, no country accounted for more than 10% of revenue contribution. (Via i stocks) [Welcome to search on a micro letter 'txws_txws' concerned about our public accounts, six wonderful article do not miss a day. ]