Dreamstime decreases royalties

After the price increase on credits announced in May 2009 Dreamstime is now moving to a tiered system of royalties: Royalties, subscriptions and SR-EL update – Message boards. Royalties for exclusive contributors remain unchanged.

With the price increase in may Dreamstime also communicated a 90% increase in traffic in the prior 12 months. The expectation is that the price increase and higher traffic will balance the conbtributors income levels while generating extra cash for Dreamstime to invest in marketing and sales. There is quite a debate on the messageboard but overall the reactions seems moderately positive. In one response Serban Enache, CEO says:

The change in royalties was planned along with that, we just delayed it in order to allow revenue to grow so you will not be affected too much. So if you do the math, include this price change. That will already get you on a positive side, or at least close to being even.”

“With the extra budget Dreamstime can attract more buyers. All our buyers are recurring and continue to purchase throughout the next years. What you may lose now (though I said it will be done gradually) will be quickly absorbed and you will see your revenues growing” 

Marco | Editor

Editor at large and founder of a bunch of stockphoto businesses