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MCG  July 2007

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Subject:

E-commerce in Digital Images & Collections Online: Business Evidence

From:

Angela Murphy <[log in to unmask]>

Reply-To:

Museums Computer Group <[log in to unmask]>

Date:

Fri, 27 Jul 2007 12:09:07 +0100

Content-Type:

text/plain

Parts/Attachments:

Parts/Attachments

text/plain (310 lines)

I was interested to see this correspondence appear. There is no doubt  
that the picture business is changing rapidly at the moment - mainly  
influenced by the changes in custom and practice generated by the web  
- and by the meteoric rise of the microstock agencies. Nevertheless,  
cultural content - like other specialist content - can still generate  
a reasonable income if the service that goes with it is also high  
quality. And this income can, at the least, fund an self-sustaining  
engine that can be invaluable.

I was employed by the Science Museum to market its images just after  
it first started its trading company in 1992 - and stayed for 12  
years. I set up and managed the NMSI's successful commercial picture  
library, Science and Society Picture Library  
(www.scienceandsociety.co.uk ) representing the images of the Science  
Museum, the National Railway Museum and the National Museum of   
Photography, Film & Television (now National Media Museum).

I would like to put out a cautionary note when it comes to looking at  
any declared turnover or profit lines from the picture libraries of  
cultural organisations. Large museums and galleries may turn over  
anything from £40,000 to £400,000 per annum depending on the content  
they happen to have (ours was great), the efficiency of their  
operations, and their distribution model - but their costs are never  
far behind, unless they have put the investment into the underlying  
systems over a long period.

All those of us who have been marketing cultural images for the last  
decade are also very aware that it is very difficult to compare like  
with like. Simon Tanner's report on US museums demonstrated that  
'profit' lines are very moveable feasts in museums and galleries. At  
NMSI, we always tried very hard to assess and report real costs  
against our real income but the truth is that many of our costs were  
subject to the museum's own cultural priorities. In addition, the  
costs of the service to non-commercial users from each of the museums  
is not factored into the equation ( although this may have changed  
since I left).

Of course, museum initiatives could work to our benefit. I doubt that  
the picture library would exist today if we had not had the benefit  
of the NOF funding to digitise and catalogue our images - and I think  
we were unique in ensuring that the picture library's systems and  
workflow were integrated with that at each of the museums during the  
project (apologies if I am wrong). Many other organisations have been  
left with digitised assets but without the integrated infrastructure  
to support sales and distribution.

Nevertheless, however you cut the figures, I am overwhelmingly sure  
that the user-oriented picture sales operations have been vital to  
the museums' health. Picture library operations have the capacity to  
fund a vital engine which - even without excess profits - can fund  
the creation and distribution of imagery that enhances knowledge of  
the collections, museum brand activities, educational initiatives,  
hardware upgrades and even software development. Museum directors  
should ignore the value of such underlying engines at their peril but  
retain a healthy scepticism when listening to the figures. [Jude -  
you are welcome to contact me offline for my thoughts on this...]

Incidentally, I can thoroughly endorse what Mike has said about  
traffic. From the very beginning, the SSPL website benefited from the  
frequency of its appearances in Google. The struggle to show that the  
commercial could run alongside the cultural to their mutual benefit  
was hard won - but ultimately successful. We had Neil Cossons to  
thank for that at NMSI.

As long as the systems are in place to support it - we can support  
academic publishing as well - but be careful not to throw the baby  
out with the bathwater.

Sorry for the length. I have been on the list for a long time  
watching - but I couldn't resist responding this time.

best wishes


Angela Murphy
Consultant
The Image Business
21 Leamington Road Villas
Notting Hill
London W11 1HS
Tel: +44-(0)20-77274920
Mob: +44-(0)7973-820020

email: [log in to unmask]



> Hi there,
>
> I've just recently joined this list, so bear with me if I bring up  
> resources which may have already made the rounds. First let me say,  
> though, that I'd also be quite interested in seeing the case study  
> mentioned in the previous message.
>
> One of the main sources for information on licensing digital images  
> and revenue I know of in a US context was written by Simon Tanner:
> Reproduction charging models and rights policy for digital images  
> in American art museums, 2004 (http://kdcs.kcl.ac.uk/USart.htm)
>
> One of my favorite quotes from this study: "Everyone interviewed  
> wants to recoup costs but almost none claimed to actually achieve  
> or expected to achieve this." If I remember correctly, Simon  
> concludes that if museums would run their licensing operations more  
> like a business, they'd a. know for sure whether they are recouping  
> their cost / creating revenue and b. they'd actually be more likely  
> to recoup their cost / create revenue.
>
> Ken Hamma's article "Public Domain Art in an Age of Easier  
> Mechanical Reproducibility" (http://www.dlib.org/dlib/november05/ 
> hamma/11hamma.html) has generated a formidable debate in the US  
> about how all these issues relate back to a museum's mission. It's  
> in this climate and spirit that the Met launched it's Images for  
> Academic Publishing with ARTstor - in essence, a fee-free license  
> model (http://www.artstor.org/info/news/service_iap_announce.jsp).  
> The V&A has already been cited for their efforts along similar lines.
>
> Cheers,
> Günter
>
> ***
>
> Günter Waibel
> Please update your address book > [log in to unmask]
> RLG Programs, OCLC
> 2029 Stierlin Court, Suite 100, Mountain View, CA 94043
> voice: +1-650-691-2304 | fax: +1-650-964-1461
> blog: www.hangingtogether.org
>
>
>
> -----Original Message-----
> From: Museums Computer Group [mailto:[log in to unmask]] On Behalf  
> Of Dicken, Jude
> Sent: Thursday, July 26, 2007 3:17 AM
> To: [log in to unmask]
> Subject: Re: E-commerce in Digital Images & Collections Online:  
> Business Evidence
>
> Jon,
>
> Thanks for your response.  You mention Debbie Richards and co  
> account 'detailed in a readable account in the last but one MCG  
> newsletter in case study form'.  I don't appear to have access to  
> this - do you have a copy you could perhaps email me?
>
> I agree with the points you make and that new technology poses a  
> challenge to existing Picture Libraries - the V&A and its new  
> website vandaimages.co.uk is one recent example I've come across  
> which appears to be taking up this challenge, though I'm sure there  
> are others within the museum/heritage sector.
>
> Thanks,
>
> Jude.
>
>
> Jude Dicken (Miss)
> Curator: Documentation Officer
> Manx National Heritage
> Kingswood Grove
> Douglas, Isle of Man IM1 3LY
>
> Tel:  +44(0)1624 648000
> Fax: +44(0)1624 648001
> Website:  www.gov.im/mnh
>
>
>
> -----Original Message-----
> From: Museums Computer Group [mailto:[log in to unmask]] On Behalf  
> Of Jon Pratty
> Sent: 26 July 2007 10:30
> To: [log in to unmask]
> Subject: Re: E-commerce in Digital Images & Collections Online:  
> Business Evidence
>
> This is a fascinating enquiry. Andy Sawyer's post highlighted the  
> great project that Debbie Richards and co conjured up in Leicester,  
> detailed in a readable account in the last but one MCG newsletter  
> in case study form, as well as that powerpoint Andy linked us to.
>
> However, it's worth pointing out, I think, that we may need to  
> update our expectations and business models about image sale and re- 
> use in the light of the rise in use of image searching facilities  
> by search engines like Google.
>
> Surely Google image search has distorted the economic models we had  
> previously developed to make the case for sale of such digital  
> items online? Also, what influence do socially-minded IPR  
> management systems (or non-management systems) like Creative  
> Commons have on the economics of selling imagery online?
>
> While funders (understandably) expect us to be thinking in terms of  
> developing new business models for cultural activity, web advances  
> move the economic goalposts all the time...
>
> Jon
>
> Jon Pratty
> Editor
>
> [log in to unmask]
> 01273 623336 (direct)
> 01273 623266 (main office number)
> 07739 287392 (mobile)
>
> The 24 Hour Museum
> Your best guide to museums, galleries, arts and heritage
> www.24hourmuseum.org.uk
>
> www.show.me.uk - great stuff for kids from UK museums and galleries
>
> Office 4
> 28 Kensington Street
> Brighton
> BN1 4AJ
>
> Winner, Best of the Web award, Museums and the Web 2004
> New Statesman New Media Awards 2002, 2005
>
>
> -----Original Message-----
> From: Museums Computer Group [mailto:[log in to unmask]] On Behalf  
> Of Dicken, Jude
> Sent: 26 July 2007 08:57
> To: [log in to unmask]
> Subject: E-commerce in Digital Images & Collections Online:  
> Business Evidence
>
> Hello,
>
>
>
> Is recent evidence available which clearly demonstrates the power  
> of e-commerce in relation to the supply of digital images and other  
> digital resources through web collections online?
>
>
>
> Of those museums/heritage organisations which are currently  
> generating income through the online sale of digital resources/ 
> prints on demand, have any provided a statement on
>
> -          the level/scale of business
>
> -          average income generated
>
>
>
> Apologies for the general nature of this enquiry but the supply of  
> facts and figures of this kind I think helps build a strong revenue  
> and sustainability argument for any collections online project.
>
>
>
> (I'm happy to summarise findings for the list with the permission of
> respondents.)
>
>
>
> Many thanks,
>
>
>
> Jude.
>
>
>
> Jude Dicken (Miss)
>
> Curator: Documentation Officer
>
> Manx National Heritage
>
> Kingswood Grove
>
> Douglas, Isle of Man IM1 3LY
>
>
>
> Tel:  +44(0)1624 648000
>
> Fax: +44(0)1624 648001
>
> Website:  www.gov.im/mnh <http://www.gov.im/mnh>
>
>
>
>
>
>
>
>
>
>
> Isle of Man.  Giving you freedom to flourish
>
> WARNING: This email message and any files transmitted with it are  
> confidential and may be subject to legal privilege. You must not  
> copy or deliver it






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