Corbis in France
Best in France Case Study
December 2004 – January 2005
By: Damien Lamy, Christoph Aumueller
Agenda
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Business overview Corbis
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Products/services and clients
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Workforce
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Why did Corbis go to France?
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Do company values fit the French culture?
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Main (HR) constraints in France
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Adaptation to France
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Key constraints of operating in France
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Key benefits from being in France
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Essential Advice
Corbis Business Overview (1/2)
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When did Corbis come to France?
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Corbis came to France in 1999 by buying its main competitor on the French market “Sygma”,
then the biggest photograph agency globally with 40 million images.
What's Corbis’ business?
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Corbis is an imaging company who provides advertisers, editors, publishers, filmmakers, and
marketers with different sources for their visual needs, not just images and film footage, but
the services that make them easy to source, locate, and license.
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With 80 million images and audio files commercialized, Corbis is today the second-biggest
visual solutions provider globally. Corbis’ images are seen daily by millions of people around
the world - in magazines, newspapers, and films, on television, and in thousands of
advertisements.
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Corbis is headquartered in Seattle, with offices in New York, Los Angeles, Chicago, London,
Paris, Düsseldorf, Vienna, Hong Kong, Kuala Lumpur, and Tokyo.
Corbis Business Overview (2/2)
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Corbis key figures
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World sales:
$140 million in 2003 and $~160 million in 2004
Sales Growth: 20% in 2003 (industry growth: ~3%) and ~14% in 2004
French sales: Not publicly disclosed*
Profits:
Not publicly disclosed*
Market share: Not publicly disclosed, but with ~80 million images in 2004, Corbis is the
second-biggest provider of images globally facing 2 main competitors:
• “Getty” (70 million images in 2001) and
• “Hachette” (40 million images in 2001)
Number of employees world-wide: ~1,000
Number of employees in France: ~ 130
Number of photographers working (amongst others) for Corbis: ~3,000 world-wide
Number of photographers almost exclusively working for Corbis: ~20 in France
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Number of images commercialized:
Number of images digitalized today:
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Founder and owner: Microsoft founder Bill Gates
80 million**
3.5 million**
Company products
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Corbis Products in France and world-wide
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Main services offered by Corbis:
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The three categories of images commercialized by Corbis globally are
• Photography (70 million images commercial, editorial, historical, portraiture, news,
sports & entertainment)
• Motion (film footage for use in film)
• Art & Illustration (e.g. Andy Warhol and Michelangelo collections)
Assignment photo shooting and editing
Rights clearances for
• Celebrities and celebrity estates
• Feature films & TV clips
• Athletes & sports Leagues
• Fine art
• Music & audio
• Properties & landmarks
All products and services are offered globally.
Expansion/reduction plans for the offering
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By the recent acquisition of the main competitor “zefa” in Germany (announced on the 3rd of
January, 2005), Corbis accelerates the penetration of its key commercial markets, and
expects to dramatically improve its market share in Germany, France, the UK, and globally.
The product lines of Corbis (editorial focus) and of zefa (advertisement focus) are
complementary.
Company's clients
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Who are Corbis’ clients?
There is two different types of clients:
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What are the clients’ expectations?
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Editors and publishers, e.g.:
• Editors for magazines and newspapers
• Publishers, e.g. for school books and novels
Communication agencies, advertisers, filmmakers and companies (e.g. for recommending
photographers and for advertisement purposes)
Corbis’ clients look for breakthrough visuals to for their imaging purposes.
They are also looking for a reliable service for easily sourcing, locating and licensing their
visuals.
How will a French presence help the company's ability to satisfy client
demands?
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By acquiring its main competitor on the European continent “Sygma” in France, Corbis could
expand its imaging offering tremendously and provide a complementary and more
exhaustive offer of images.
Company's workforce
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Corbis employs 1,000 employees world-wide in the following functions:
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Furthermore, Corbis has 3,000 photographers under contract globally
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Client counseling and client service (mainly journalists)
Research
Photo edition
Art edition
Film edition
Web production
Various administrative functions
As usual in the imaging industry, all of the photographers work for more than one imaging
agency and/or other clients
In France, 20 top photographers work almost exclusively for Corbis
Corbis commercializes the photographers’ images and takes royalties Based
upon the Type of Usage:
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50% for editorial users
45% for commercial users
Why Corbis went to France
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Corbis’ approach to international growth
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Why was France a key target location
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After the already established presence in the UK (since 1990), France was the company’s first
choice of continental European presence
With the acquisition of “Sygma” in France in 1999, Corbis got access to 40 million images for
commercial purposes and thus more than doubled its global offer at the time.
The focus on photo journalism was a perfect completion to Corbis’ current product offering in 1999
Where else did Corbis consider to go?
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Corbis pursued a “triangle” approach for international growth, starting out in the U.S. and building
up business in Europe and Asia
Corbis pursued a different approach to access new markets in different countries:
• France: acquisition of competitor “Sygma” in 1999
• Germany: acquisition of “Top Market” (Germany is the biggest communication/advertisement
market in Europe), followed by an acquisition of competitor “zefa” in January 2005 (+140
employees throughout Europe)
• Other European countries (e.g. Italy, Spain, Poland, Belgium): Represented by agents
• Japan: local Joint Venture
• China and Malaysia: building up subsidiary “from the scratch”
For the above stated reason, France was the undisputed first choice of presence in 1999 in
continental Europe.
In 2002, Corbis expanded its presence to Germany, mainly in order to provide their clients in the
German publishing and advertisement industry with a central and local contact.
What are future markets for Corbis?
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Corbis is currently not present in northern European countries
Company values
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What are the core values of the company that may or may not fit with perceived
French values?
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Corbis does not have formalized corporate values.
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However, coming from an American business culture and being founded and owned by Bill Gates,
the company can be described as extremely
• Service oriented*
• Commercially/sales-oriented
• Strategic business approach
• Technology-focused
• Editorial focus, creating a product offering adapted to the evolution of trends **
Coming to France by acquiring an existing, French business structure with French employees, the
American management found a quite different business culture:
• More journalistic, “adventurous” approach of employees and photographers
• More “traditional” business approach, less open to quick changes
• E.g. when 2 years after the acquisition of the French competitor, a restructuring plan became
necessary, reducing the French workforce from ~220 to ~100 employees, the employees
went on strike, which was rather unexpected by the American management.
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How did company manage to instill its values in the French unit?
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The HR director who was present in 1999 is not with the company today.
According to the present HR director, the key factor of success for instilling a mindset of change
within the French unit was taking a lot of time and effort to explain to all the employees why the
change was necessary.
However, in the course of 5 years since the acquisition of Sygma in 1999, HR and the
management have achieved a true change in the mindset of their employees.
Constraints in France
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What are the principle constraints the company foresaw before going to
France?
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Did Corbis discover any constraints when coming to France/which were the
worst constraints Corbis discovered?
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The American management did not really foresee a lot of problems when planning to expand
their business in France.
There was an absence of comprehension for international problems.
Since the company had already succeeded in implanting a business unit in the UK, the
American management thought that it would not be too difficult to succeed in France as well.
When Corbis came to France by acquiring their competitor “Sygma”, the American
management thought that the company would actually “buy” the images of the photographers
associated with Sygma.
However, al images actually are the property of the photographers, so that Corbis in fact
bought an “empty shell” .
The photographers went on strike, and Corbis got into legal fights with them and their lawyers
and had to renegotiate the contracts with the photographers.
Team work is not institutionalized
Relations are more hierarchical
How do these constraints differ with their other locations?
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Even if the property rights are comparable in other countries, the law is more strictly applied in
France.
Adaptation to France (1/3)
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What kinds of adaptations did/is Corbis making to its people management systems?
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Generally speaking, Corbis pursues a largely global approach to most HR practices
and above all to HR procedures. However, some changes were necessary in order to
adapt to the French culture, business practices and laws:
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Recruitment/Selection:
• The recruitment procedures are followed on a global basis.
• However, the company had to adapt in terms of interpretation of local candidate profiles (e.g.
what schools are the best in France, what does a certain evaluation of a previous job or
university degree mean in France, etc.)
Compensation
• Compensation follows global guidelines, but is adapted by carrying out a local benchmark for
salaries in various functions.
• Since non-wage labor costs are extremely high in France, total salary costs in France are 30%
higher as for the same job in the USA
Management Development and performance evaluation
• Both follow global guidelines and is strictly confidential.
• Performance evaluation takes place on a daily basis between managers and their employees,
and on a formalized basis 1-2 times per year for all employees.
Adaptation to France (2/3)
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What kinds of adaptations did/is Corbis making to its people management
systems?
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Motivation
• Motivation is pursued by daily dialogue between managers and theirs employees.
• HR is closely involved into this dialogue and often acts as a mediator between
management and their employees.
• Motivation has been extremely difficult in harsh times as for example the restructuring plan
in 2001, where a lot of additional communication was necessary.
• The most time is still needed in order to explain changes to those ~50 of the ~130
employees, who have already been with Sygma before the acquisition by Corbis. With
some of them, the dialogue is still difficult today.
Legal HR aspects
• Generally speaking, the company had to adapt to French laws, especially regarding their
contracts with the photographers working for them, as explained before.
• Laying off employees is of course much more difficult in France than in the U.S., the U.K.
or Asia, except for Japan, where it is also extremely difficult.
• Furthermore, oral agreements are much more common in France than in the U.S., where
practically everything is written down in contracts in order to avoid legal dispute.
• Therefore, in order to follow the global guidelines, Corbis had to enforce much more
contracts in the existing French business structures.
Adaptation to France (3/3)
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What kinds of adaptations did/is Corbis making to its people management systems?
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Communication Policies
• Communication policy is largely global.
• As explained above, much time is needed in order to explain changes to the employees,
especially to those who already worked for Sygma.
• In the course of larger events (like e.g. restructuring plan in 2001), large meetings with HR and
all employees are carried out in order to explain the scale and necessity of the change into
detail.
International Transfers, Use of Expatriates
• International transfers are strongly encouraged and carried out on a continuous basis at
Corbis.
• In 2004, 4 employees on a managerial level have been transferred from France to other
countries.
• Furthermore, ~10 employees on a managerial level have been transferred from the U.S., U.K.,
Asia and Germany to France.
Training
• There is formalized, but confidential training for management and top management level.
• For levels below there is a large offer of e-learning in English language on the intranet.
• Also, English courses are offered on an e-learning basis for all employees who are not
sufficiently proficient in this language.
• However, since Corbis has been recruiting more and more international profiles, English
becomes less and less of a problem.
Key Constraints in France
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What are the key constraints and/or constraint costs of operating in France
that are more or less than operating in other locations?
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Administrative costs
• The administrative costs are much higher in France than in the U.S. or the U.K., mainly due to
French law.
Any or all HR type costs (hiring, paying, training, dismissing, etc.)
• Above all, costs for laying off people are much higher in France than in the U.S. or the U.K.
Integration of French managers into global organisation (does it cost more to use French managers than
managers from other cultures)
• Since total salary costs in France are about 30% more expensive than in other European countries,
integration into France is costly.
Less professional experience of young recruits
• Employees recruited from French universities have largely no professional experience in terms of
internships etc. before starting their first job after graduation.
Lack of team work
• People aren’t used to that, since it is not taught at school.
Hierarchy
• French organizations tend to be much more hierarchical than U.S. or U.K. firms.
Obligation to dissent
• French employees are much less dissenting than for example German employees.
• This means that it can be difficult sometimes to know whether employees have understood what has
been explained to them.
• It is also difficult to know what they really think about a decision that has been taken, since they are
much more used to “taking orders”, even if they don’t agree, but probably, they won’t let you know
this.
Key Benefits in France
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What are the key benefits of being in France?
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Product offering
• As explained above, Corbis’ product offering has more than doubled by acquiring the
French competitor Sygma.
• To enter into the French market was important, since it is the reference market in
photojournalism (compared with Germany, for example, which is the reference market
in advertising).
Government assistance
• There was no financial government assistance for Corbis when coming to France.
• However, government relations in terms of administrative help have been quite
satisfactory.
Qualification of recruits
• French recruits generally speaking have a good level of general education compared to
other countries
• They also specialize early on, which makes them interesting to companies.
Productivity
• French employees are passionate about their work.
Essential Advice (1/2)
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What advice do you offer to other companies in this sector concerning about
France as a location?
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Before going to France
• Companies, especially American companies should be aware of cultural differences and
international problems before coming to France.
• They should gather as much cultural information as possible before acquiring a French
company.
• They should also gather as much legal information as possible (see problem with
photographers)
When coming to France after having established a presence in the U.K.
• If an American company has successfully established a presence in the U.K., they
should not feel tempted to think that they will be equally successful in France or other
continental European countries, since the cultures are still largely different.
When choosing a first country for a presence in Europe
• Often, American companies feel tempted to start their European presence in the U.K,
since the language is the same and they feel that the business culture will be very
similar to the U.S.
• But this is not true and thus American companies should be careful with this
interpretation.
• For establishing a truly European presence, American companies even should not start
out in the U.K., but rather in a large continental European country, preferably in France
or Germany (for their importance in the European market) or in the Netherlands (for
their fiscal advantages).
Essential Advice (2/2)
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What advice do you offer to other companies in this sector concerning about
France as a location?
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Adaptation while in France
• When acquiring a French business structure, it is advantageous to first leave the French
management largely in place in order to avoid culture clashes.
• A little later, a mix of foreign and French management can help to overcome
communication difficulties between foreign headquarters and the French subsidiary.
• If there are harsh decisions or radical changes to be made after acquiring a French
company, management should carry out the changes quickly, and not only after one or
two years of presence in the country (as for example the restructuring plan at Corbis
France, which was carried out only 2 years after acquiring Sygma).
• After acquiring a French company the HR director in the foreign headquarters has to be
in daily contact with its counterpart in France in order to identify and solve possible
areas of problems quickly.
• Foreign companies should try to recruit employees with as much international profiles
as possible in order to link the different business cultures together.
• Corbis for example has around 20 of its 130 employees in France who are not French
• The atmosphere today at Corbis is much more global than in has been some years ago,
which helps tremendously in working together with the American headquarters.
We Thank
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Anne Sophie Curet
HR Director International (Europe, Asia)
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Email: anne-sophie.curet@corbis.com
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Address:
40 Avenue des terroirs de France
75012 Paris
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Telephone: +33 1 53 33 35 45
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Corbis Media Contacts:
Michael Croan
+1 (206) 373-6158
michael.croan@corbis.com
Bibliography
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References:
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http://pro.corbis.com/
http://www.corbis.com/corporate/PressRoom/PDF/Corbis_Fact_Sheet.pdf
http://www.corbis.com/corporate/Overview/Services.asp
http://www.corbis.com/corporate/Overview/Images.asp
http://www.corbis.com/corporate/overview/overview.asp?linkid=150000
http://www.corbis.com/corporate/PressRoom/Pressreleases.asp
http://www.corbis.com/corporate/PressRoom/PDF/Corbis_Fact_Sheet.pdf
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http://lemagchallenges.nouvelobs.com/coulisses/art2.html
Appendix 1 – Questionnaire (1/3)
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Business overview Corbis:
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Products/services and clients Corbis:
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What is the company's approach to international growth?
In what other countries did Corbis consider to expand the business?
Why was France a key target location?
Do your company values fit the French culture?
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What are your products and services in France? Is your offer the same world-wide?
Who are your clients and what are their expectations?
How will a presence in France help the company's ability to satisfy client demands?
Why did Corbis come to France?
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Short description and key figures (as far as public) of your business: sales, profits, market
share, number of employees (global and in France)
Are there expansion/reduction plans for your operations in France?
What are the core values of your company?
To what extent do they fit with perceived French values?
How did you manage to instill your values in the French business unit?
What are the main (HR) constraints in France?
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What are the principle constraints that your company foresaw before going to France?
Did you discover any others?
Which are the "worst" constraints in France?
How do they differ from other locations?
Appendix 1 – Questionnaire (2/3)
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What adaptations had to be done in France regarding HR practices in the
French media sector?
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Recruitment/Selection
Compensation
Legal aspects (e.g. contracts with photographers)
Management Development
Workforce Planning
Performance Appraisal
Motivation
Job Design, Job Assignment
Communication Policies
International Transfers, Use of Expatriates
Training
To what extent are American and French managers mixed?
How do the two management cultures work together?
What are the key costs of operating in France that are more or less than
operating in other locations?
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HR costs: hiring, paying, training, dismissal, etc.
Communication constraints like language, infrastructure communication costs, etc.
Other organization structure costs like real estate, travel, taxes, etc.
Integration of French managers into global organization (does it cost more to use French
managers than managers from other cultures?)
Appendix 1 – Questionnaire (3/3)
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What adaptations had to be done in France regarding HR practices in the What
are the key benefits of being in France?
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What is your essential advice to other companies in this sector concerning
about France as a location?
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Product/service cost, productivity, customer image, etc.?
Productivity: revenue/profit per French employee?
Location benefits: transport, time zone, quality of life, employee satisfaction with France,
etc.?
Government or administrative assistance?
Market Potential: growth potential, launch platform for other European countries, etc.?
Before going to France?
Adaptation while in France?
Future investments in Western Europe?
Additional comments
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Appendix 2 – Press coverage
Bill Gates, deuxième banquier d'images mondial
Le créateur de Microsoft collectionne les photos depuis 1989. A titre perso mais à usage lucratif. Son agence Corbis avale méthodiquement les autres.
Göksin Sipahioglu en rigole encore. « Je suis vraiment un vieux c... de ne pas avoir accepté l'offre de Bill Gates. Je devais toucher 1 million de francs par mois seulement avec
les intérêts », révèle le fondateur de Sipa Press. Hiver 1998, le fondateur de Microsoft mandate deux avocats d'affaires pour négocier à Paris le rachat de la célèbre agence de
photos de presse. Les mondes se percutent avec violence. D'un côté, les lignes de bilans et le contrôle de gestion ; de l'autre, la gouaille et les coups journalistiques. Les
hommes de Bill Gates, venus de Seattle, sont prêts à aligner une grosse somme, mais exigent le départ du « Turc ». Du haut de sa grande carcasse, le septuagénaire refuse tout
net la proposition. Difficile d'acheter celui qui fut le seul reporter à entrer à Cuba en décembre 1962 au moment de la crise des missiles. Sipa, c'est toute sa vie. Alors, pas
question de céder face aux financiers américains. Ces derniers se tournent donc vers une autre proie : Sygma, fondée en 1973 par Hubert Henrotte, un ancien photographe du
Figaro. Bill Gates met la main en juin 1999 sur cette autre institution française de l'image, peut-être la plus grande agence photographique du monde. Sygma rejoint ainsi la
collection d'agences qui bâtit l'empire de photos du milliardaire de Seattle.
La banque d'images qui sera baptisée Corbis serait née d'un délire de Bill Gates. Il rêve de voir défiler les plus belles images du monde sur les écrans muraux haute définition de
sa maison. Alors, dès 1989, il rachète méthodiquement, avec ses deniers personnels, les archives visuelles de la planète. Il signe des accords de reproduction avec la National
Gallery et le musée de l'Ermitage et met la main sur différentes agences de photos d'illustration et collections, notamment le fonds Bettman. Enfin, outre Sygma, Corbis a pris le
contrôle depuis 1999 de quatre agences de presse : Saba (news), Kipa (télévision et cinéma), Tempsport (sport) et Outline (people). A l'arrivée, avec ses 68 millions de clichés,
Corbis se retrouve dans le trio de tête mondial des banques d'images aux côtés de Getty Images et d'Hachette.
Rêve de toute-puissance ? Dans cette débauche de dollars, certains décèlent une tentative de toute-puissance : qui domine l'image domine les esprits. D'autres y voient un
hobby de milliardaire. Ou juste un bon filon, Bill Gates n'étant pas réputé pour investir à perte. « Bill a réagi à une opportunité technologique et financière. Il a vu que le
numérique et la distribution sur Internet allaient créer une nouvelle demande pour les professionnels de la presse et de l'illustration, d'une part, et pour les particuliers, d'autre
part », raconte Steve Davis, vieil ami de Bill et patron de Corbis. Sur le site Corbis.com, on peut acquérir en ligne une vue du désert ou celle d'un mannequin en maillot de bain
moyennant quelques dollars. Mais les résultats déçoivent. « Corbis présentait la vente de photos aux particuliers comme une révolution. Pour l'instant, le marché est tout
simplement inexistant », dévoile Thierry Faulques, expert des industries de médias pour Deloitte & Touche. L'affaire a tout de même réalisé un chiffre d'affaires de 1 milliard de
francs (152 millions d'euros) en 2000, le montant des pertes restant confidentiel. « Nous visons l'équilibre pour l'année prochaine. Notre première phase d'activité devait aboutir
à des pertes. Car elle nécessitait de lourds investissements dans la numérisation des photos, la mise en ligne et l'intégration de nos agences », assure Steve Davis.
Sygma n'est pas pour rien dans le flop. Avec 75 millions de francs de pertes (11,43 millions d'euros) pour 115 millions de ventes (17,53 millions d'euros), les chiffres de l'agence
sont mauvais. Quand Steve Davis a décidé de s'aventurer dans les news, il n'avait sans doute pas conscience de la galère dans laquelle il s'embar-quait. « Corbis a racheté
l'agence Sygma pour se faire un nom et prendre pied sur le marché européen », explique Franck Perrier, directeur général de Corbis France. Les Américains, qui pensaient
rapatrier tirages et négatifs à Seattle pour mieux les exploiter, sont victimes d'un vrai malentendu, puisque, en droit français, les clichés appartiennent aux photographes. « Les
Américains imaginaient qu'ils allaient pouvoir récupérer et exploiter librement nos images. Mais ils n'ont finalement négocié qu'une coquille vide », explique un photographe de
Corbis Sygma. La profession se sent menacée et contre-attaque. « Au début, Corbis plaisantait sur les susceptibilités du village d'irréductibles Gaulois. Après, ils ont moins ri »,
se souvient Brigitte Richard, avocate des photographes de Corbis Sygma. Un an et demi après la crise, Steve Davis a rangé au tiroir ses contrats assimilant les photographes à
des « fournisseurs de contenu » et reconnaît volontiers ses erreurs : « Corbis a péché par manque de concertation et de communication. L'incompréhension avec les
photographes s'est installée. »
Et les photographes dans tout ça ? Il est vrai qu'avec le chamboulement d'Internet le métier est passé, en quelques années, de l'artisanat à l'industrie. « Les photographes voient
leur rôle se diluer dans une organisation qui les dépasse. Ils étaient des seigneurs, ils deviennent des numéros », constate Michel Guerrin, journaliste au Monde, spécialiste de
la photo. L'esprit de famille disparaît petit à petit. Les photographes sont déboussolés par les nouveaux patrons qui ne sont pas journalistes, le manager américain qui ne parle
pas un mot de français et l'obligation de consigner leur heure de départ le soir. Et puis la crainte est toujours présente de voir les enjeux financiers l'emporter sur le propos des
images. « Les photographes craignent que Corbis n'envisage de devenir une simple banque d'images et plus une entreprise de production », explique Alain Noguès, un
photojournaliste de Corbis qui a trente-cinq ans de métier. Dans la photo, il est vain d'établir un budget prévisionnel. « Les businessmen à la tête des agences doivent
comprendre que la production d'aujourd'hui est l'archive de demain. C'est ce qui fait la richesse d'une agence », rabâche un professionnel. Corbis dit l'avoir compris, et investit
sur ses photographes. Mi-octobre, la société de Seattle s'enorgueillissait de compter parmi ses rangs le photographe Patrick Robert, qui suit les combattants de l'Alliance du
Nord dans la montagne afghane. Les événements du 11 septembre ont donné un coup de fouet au photojournalisme et aiguisé l'appétit d'images du public. Mais un peu trop tard
pour Göksin Sipahioglu, qui a finalement vendu dans les tout premiers jours du mois de septembre. Sipa est tombée dans l'escarcelle de Sud Communication, un groupe qui
appartient aux Laboratoires Fabre. A l'heure de la chute du dernier bastion indépendant, Göksin Sipahioglu reste fasciné par la vista de Bill Gates : « C'est un génie. Il a compris
avant tous les autres l'importance de la photo et a anticipé les mouvements de concentration inévitables. Il contrôle aujourd'hui une part de la mémoire de l'humanité
» Marie Bordet
Appendix 3 – Press release 1
Corbis Reports 2003 Growth at 5X the Industry Rate CEO Steve Davis presides over “pivotal moment”
in company’s evolution; owner Bill Gates sees 20% growth as market validation for founding vision
NEW YORK (January 15, 2004)—Corbis announced today that its revenues grew 20 percent in 2003, more than five times the consensus growth rate for the
advertising/publishing sector. The announcement was made at the company’s first-ever annual meeting, at which Corbis CEO Steve Davis, along with owner and founder Bill
Gates, addressed an audience of more than 250 media and publishing executives, reporters, and industry analysts.
Davis estimated the company’s 2003 revenues at approximately $140 million, making it the largest single brand name in the global image-licensing industry. He attributes Corbis’
strong performance to ongoing changes in the ways businesses are using imagery, which play to the company’s founding vision.
“Professional communicators are demanding more sophisticated solutions for their visual storytelling needs,” said Davis, “in terms of both imagery and the ecosystem of rights
and permissions associated with their use. While a traditional photography agency is not positioned to meet these growing needs, Corbis was conceived and built with exactly
these needs in mind.”
According to Davis, the demand for imagery is at an all-time high—and growing—as end-users find more and more applications for it in their daily lives, not only in traditional
media like newspapers, magazines, and television, but also in emerging technologies like cell phones and plasma screens. This leads marketers, publishers, and other creative
professionals to rely increasingly on visuals to tell stories, build brands, sell products and entertain audiences.
“As more and more imagery floods the marketplace to meet that demand, our clients need to cut through the clutter in more arresting ways,” Davis explained. “That often means
clever, new combinations of content—from still photography to footage, motion picture clips to the Mona Lisa, celebrity portraiture to hard-hitting photojournalism—all with
varying degrees of exclusivity. These complexities require greater emphasis on service, in which Corbis enjoys a three-to-one advantage according to global market research.
And Corbis is the only global provider to combine a world-class collection of images, with a suite of highly consultative services twenty-four hours a day, seven days a week.”
Corbis’ clients evidently find value in its approach—analysts estimate industry growth at a median of three and a half percent, so Corbis’ disproportionate growth indicates that
the company is taking market share from its competitors. This is likely the result of its ability to meet the increasingly complex needs of image users.
Advertisers, for example, increasingly find a competitive advantage in associating their brands with particular celebrities—Tiger Woods, for instance. But getting the necessary
rights clearances can be so costly and time-consuming that creative professionals will often settle for a less powerful idea than pursue the elusive clearances. Corbis provides
both the imagery and the clearances, saving the advertiser valuable time and money.
“On its own, the old vending machine model—insert coin, remove image—cannot deal with these growing complexities,” Davis explained. “There has to be an additive layer of
expertise and service. Today’s professional communicators need more than a vendor. They need a partner.”
Despite the company’s growing emphasis on consultative service—and given that Corbis is owned by Microsoft Chairman Bill Gates—it is no surprise that technology plays an
important role in Corbis’ business. “From the beginning we foresaw a marketplace where technology would enable unprecedented access to the world’s most powerful images,”
said Gates. “Of course, unfettered access opens a Pandora’s box of challenges with regard to intellectual property rights, so Corbis pioneered the use of technology to manage
and control rights. Without this control, clients could never be sure that the rights they’ve licensed will be protected.”
ccording to Gates, a business model that combines technology and rights in such a unique way requires a uniquely qualified leader to oversee it. Gates found the right balance
of attributes in Davis. “Some people are calling him my ‘other Steve,’” Gates laughed, “but his business acumen, technological know-how, and strong background in intellectual
property law make him singularly qualified to run Corbis—a company that exists at the convergence of art, commerce, technology and law. The amazing growth Corbis is
enjoying is a tribute to his leadership and focus.”
Our business model—the broadest, deepest combination of world-class imagery and expert services under a single, global brand—was a long-term play from the beginning,”
said Davis. “To grow twenty percent in a flat economy is an unmistakable validation that our investment and perseverance are beginning to pay off. It is a pivotal moment for
Corbis.”
Through many years of research and development, acquisition and integration,” Davis continued, “we were able to maintain our focus thanks to Bill’s unwavering commitment
and support. Without such a patient investor, we would have been forced to yield to short-term pressures long ago, resulting in a less compelling offering for 21st-century
clients.”
Appendix 4 – Press release 2, Jan. 3, 2005
Corbis Acquires zefa, Third-Largest Image Licensing Company in the World,
Addition expands comprehensive creative choice and services in one place
SEATTLE and DÜSSELDORF (January 3, 2005)–Corbis today announced its acquisition of zefa Visual Media Group, the thirdlargest image licensing company in the world, resulting in combined revenues in excess of US$200 MM. The addition of zefa
advances Corbis’ strategy of offering complete visual solutions, encompassing existing imagery, custom production, and rights
services.
“This deal further solidifies our plan to accelerate penetration of key commercial markets,” said Steve Davis, President and CEO
of Corbis. “Moreover, as a result, we expect to dramatically improve our market share, not only in Germany, France, and the UK,
but around the globe.”
Headquartered in Düsseldorf, Germany, zefa has more than 140 employees and eight offices throughout Europe. The company
represents more than 450,000 images, used daily by advertising agencies, corporations, and publishers around the world.
“zefa’s fresh, fashion-forward photography is a perfect complement to Corbis’ imagery and services,” said Jennifer Hurshell,
Corbis Senior Vice-President, Image Licensing. “Our clients demand tremendous stylistic breadth of imagery, and this takes us
another step forward to building one of greatest creative resources in the world.”
“Corbis and zefa share a deep commitment to offering our clients the most relevant imagery to communicate their ideas,” said
Tomas Speight, CEO of zefa. “This will enormously benefit our photographers, who will gain global reach from Corbis’ global
sales network and industry-leading services.”
In 2005, Corbis will integrate zefa into its website, global sales organization, and marketing programs, offering comprehensive
access to Corbis and zefa imagery and services. Erwin Fey, zefa President, will transition into a strategic consulting role with
Corbis, and Tomas Speight, CEO of zefa, will enter a new role as a Vice-President, leading international operations expansion
activities.
ABOUT zefa VISUAL MEDIA
zefa visual media gmbh is the largest European group in the professional stock imagery market, and currently ranks number
three worldwide. The main office of zefa visual media group is in Düsseldorf, Germany. There is another sales office in Hamburg
as well as 16 subsidiaries and partner agencies around the world, all forming the zefa visual media group. The range of images
offered by zefa covers a wide selection of rights-managed and royalty-free collections. In addition, zefa visual media also has its
own global network of top creative photographers.
Over 70 group partners license the usage rights to the group´s images via its global image portal www.zefaimages.com.
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