Los Angeles, CA (PRWEB) June 04, 2012
The Commercial Photo Libraries industry has experienced weak demand and falling revenue over the five years to 2012, primarily due to a decrease in advertising expenditure. As the US economy came to a halt, corporate profit and spending on advertising and marketing declined. In 2008, corporate profit fell 17.4%; the following year, total US advertising expenditure dropped 17.5%. According to IBISWorld industry analyst Nikoleta Panteva, these factors resulted in a 24.5% fall in industry revenue in 2009, which has ultimately stifled five-year growth. From 2007 to 2012, IBISWorld estimates that industry revenue has declined at an average annual rate of 4.0% to an expected $2.1 billion by the end of the year.
Fortunately for operators in the Commercial Photo Libraries industry, ad spending and corporate profit are both on the rise. Together, the drivers are expected to push industry revenue up 1.5% during the year. Industry profit is also on the rebound. After suffering a decline in 2009, industry profit (measured as earnings before interest and tax) is anticipated to grow in 2012. Industry operators' efforts to diversify product and service offerings have supported this growth; many libraries now feature videos and audio for purchase as well, says Panteva.
The industry has a low level of concentration. The ease with which participants can set up an online library and source photography has allowed for easy entry and 26,535 companies in the industry; likewise, competition is high. Additionally, there are many small niche players that focus on a particular subject or category for their photos. The largest companies have extensive photo libraries along with some other types of media. The number of firms operating in the industry has remained high and the industry is expected to remain fragmented over the next five years. However, the industry is reaching its saturation point. As a result, companies have begun to diversify their services, expanding into other media. The industry's outlook does not look especially promising, however. Technology advancements in photography are enabling businesses and individuals to purchase professional cameras and establish their own photo libraries. IBISWorld anticipates that this trend will constrain industry revenue growth over the next five years, despite rebounding advertising expenditure and corporate profit. From 2012 to 2017, industry revenue is projected to grow. Competition will mount as more libraries enter the industry due to its low barriers to entry. For more information, visit IBISWorld’s Commercial Photo Libraries in the US industry report page.
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IBISWorld industry Report Key Topics
This industry provides royalty-free and rights-managed photography, which is licensed for use in advertisements, promotional materials and websites. Firms also provide illustrations, maps, videos and audio.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.