A few hours ago I disabled my small portfolio. I have not uploaded any new images for months, as it was hard to find the motivation when the minimum amount sat at 25 cents.
As a public listed company, ShutterStock has to meet shareholder expectations in terms of return on investment, however, the share price has been in decline. ShutterStock also reported an earnings decline in 2020 Q1, which in part was due to COVID-19. There has been a decline in Ad spend by large companies, but interestingly small business spend is up.
It seems to me that ShutterStock in introducing the new "Earnings Structure", has scrambled to reduce costs to better align with the reduction in revenue generated. How best to do that, well that is an easy one, they chose to pay contributors less rather than review the subscription plans on offer to clients. I understand that some of the subscription plans meant that SS was actually losing money with the percentage that was paid to some contributors. That to me is a SS problem and yet we as contributors are being sacrificed.
It all seems a short term solution, that is not sustainable in the long term. ShutterStock is is in the business of selling content and the success of the company rests on the supply of fresh quality content to meet client needs. If it is not sustainable for contributors, then the business model will not be sustainable for ShutterStock. Successful businesses know the importance of looking after the supply chain, so how is SS getting it so wrong? The phrase "A House Of Cards" comes to mind.
The Q2 Earnings Call is getting close and I wonder how that and the later Q3 will look?
A minimum payment amount of 10 cents might be enough for some contributors, that will of course depend upon how we value our time which is the ultimate commodity.