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An example of stock photography
Stock photography consists of existing photographs that can be licensed for specific uses. Publishers, advertising agencies, graphic artists, and others use stock photography to fulfill the needs of their creative assignments.
A customer who uses stock photography instead of hiring a photographer can save time and money, but can also sacrifice creative control. Stock images can be presented in searchable online databases, purchased online, and delivered via download or email.
A collection of stock photography may also be called a photo archive, picture library, image bank or photo bank. As modern stock photography distributors often carry stills, video, and illustrations, none of the existing terminology provides a perfect match.
Contents
1 Industry structure
2 Overview
2.1 Royalty-free (RF)
2.2 Rights-managed (RM)
2.3 Features
3 History
4 See also
5 References
//
Industry structure
Images are filed at an agency that negotiates licensing fees on the photographer's behalf in exchange for a percentage, or in some cases owns the images outright. This is increasingly done online, especially with the newer micro-stock models like Shutterstock and iStockphoto.
Pricing is determined by size of audience or readership, how long the image is to be used, country or region where the images will be used and whether royalties are due to the image creator or owner. Often, an image can be licensed for less than $200, or in the case of the microstock photography websites as little as $1.
With Rights Managed stock photography an individual licensing agreement is negotiated for each use. Royalty-free stock photography offers a photo buyer the ability to use an image in an unlimited number of ways for a single license fee. The client may, however, request "exclusive" rights, preventing other customers from using the same image for a specified length of time or in the same industry. Such sales can command many thousands of dollars, both because they tend to be high-exposure and because the agency is gambling that the image would not have made more money had it remained in circulation. However, with royalty free licensing there is no option for getting exclusive usage rights.
Some stock photography sites offer low-resolution photography free for the purpose of preparing advertising comps to demonstrate a design. If the advertiser decides to use the image, the rights to use the high-resolution image then can be negotiated.
Professional stock photographers place their images with one or more stock agencies on a contractual basis, with a defined commission basis and for a specified contract term. Some photographers fund their own photo shoots, or develop imagery in cooperation with an agency, while others submit photographs originally produced as part of editorial (magazine) or commercial assignments.
Overview
Royalty-free (RF)
"Free" in this context means "free of royalties (paying each time you use an image)". It does not mean the image is free to use without purchasing a license or that the image is in the public domain.
Pay a one-time fee to use the image multiple times for multiple purposes (with limits).
No time limit on when the buyer can use an image.
No one can have exclusive rights of a Royalty-free image (the photographer can sell the image as many times as he wants).
A Royalty-free image usually has a limit to how many times the buyer can reproduce it. For example, a license might allow the buyer to print 500,000 brochures with the purchased image. The amount of copies made is called the print run. Above that print run the buyer is required to pay a fee per brochure, usually 1 to 3 cents. Magazines with a large print run cannot use a standard Royalty-free license and therefore they either purchase images with a Rights-managed license or have in-house photographers.
Rights-managed (RM)
(sometimes called "licensed images")
The value of a license is determined by the use of the image, which is generally broken down along these lines;
Usage: (eg. Advertising - "Above the Line", Corporate - "Below the Line" or Editorial - "News Media")
Specific Use: (eg. Billboard, Annual Report, Newspaper article)
Duration: (eg. 1 month, 2 months, 1 Year, 2 Years etc)
Print Run: (eg. up to 10,000, up to 1m)
Territory: (eg; USA, Europe, UK, Germany, or whatever combination of territories are required)
Size: (how big is the image to be used - 1/4 page, 1/2 page, full page, or double page spread)
Industry: (Industry type - eg. Consumer Electronics, Marine Engineering, Financial Services etc)
Exclusivity: (Exclusive, or Non Exclusive)
The terms of the license are clearly defined and negotiated so that the purchaser receives maximum value, and is...(and so on)

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