image credit: Bamboo Works
Key Takeaways:
The company's core revenue from content licensing fell 14% last year, slipping below 70% of overall turnover
Visual China hit the headlines in 2019 when it tried to charge for a landmark scientific image that had been issued as free for general use
Generative AI is disrupting creative industries across the board, and the business of sourcing visual content is no exception.
Whether for news coverage, corporate marketing or advertising campaigns, businesses have traditionally obtained images through platforms such as Getty Images (NYSE:GETY) and Shutterstock (NYSE:SSTK). But the rapid adoption of AI-powered tools has meant that many users are opting to create their own images, without the help of a go-between.
Still, the stalwarts of the licensed image industry believe their extensive content libraries remain a store of value, as they reposition themselves as integrated platforms offering content assets and AI capabilities. This strategy lies at the heart of an IPO pitch by China's biggest provider of stock images, Visual China Group Co. Ltd. (000681.SZ), which wants to raise money to invest in its AI services.
The founder of Visual China, Chai Jijun, started out as a photojournalist at China Youth Daily before getting into the business of content licensing.
In 2016, the company acquired the image licensing division of Corbis, the photo agency founded by Bill Gates, gaining access to an international portfolio of copyrighted content. It later added the photographer community 500px and obtained a controlling stake in Chengdu Guangchang Creative Technology, building a content ecosystem spanning images, videos, audio and 3D models.
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