Before the rise of generative AI, stock photo sites, both paid and free, were highly valued by advertising agencies, media outlets, and related industries. If you needed an image for a project, these services likely had what you were looking for.
However, recent years have seen a shift. Many people seeking images of generic products, cityscapes, illustrations, and thematic scenes are now turning to the capabilities of algorithms instead of relying on traditional stock image databases.
In light of this changing landscape, industry giants Getty Images and Shutterstock have chosen to merge.
Getty Images and Shutterstock Merge Amid the Surge in Generative AI Technology
The two entities will merge to form a single visual content company valued at $3.7 billion. According to their press release, this merger will create “a content library with greater depth and breadth for the benefit of costumers, expanded opportunities for its contributor community and a reinforced commitment to the adoption of inclusive and representative content.”
Shutterstock CEO Paul Hennessy pointed out that one of the merger’s advantages is the optimization of costs and cash flow. The economic factors are certainly significant. Following the announcement, the market reacted positively. Getty’s shares rose by as much as 61% in pre-market trading, while Shutterstock’s shares increased by 32%.
Additionally, the companies are looking to promote their generative AI solutions. At the onset of the recent AI revolution, it was uncertain which direction they would take. In 2022, rumors emerged that Shutterstock was removing AI-generated images. The company even publicly voiced copyright concerns. However, it subsequently announced a plan to compensate creators and launched its own generative AI tool. Getty Images followed suit by introducing its own generative AI.
The boards of directors of Shutterstock and Getty Images have approved the merger agreement, which is now awaiting regulatory approval. If all goes as planned, Getty Images CEO Craig Peters will lead the combined companies, while Shutterstock will continue to operate as an independent service.
Image | Liam Shaw | Brooke Cagle
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