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Observers worldwide have wondered which major company would be the first victim of artificial intelligence's power. Sure, the technology has affected various industries, and smaller firms have been hit hard. But now we have confirmation that Getty Images, one of the world’s largest stock photo companies, is resting in the AI graveyard.
Getty Gone
If you read a newspaper or browsed a prominent blog, you have likely seen a licensed Getty picture as the feature image.
A few years can make a difference. In 2022, Getty Images debuted on Wall Street with a $4.8 billion valuation. It maintained a massive library of photos and videos, earning billions by selling access to businesses. Years later, AI image generators became ubiquitous, disrupting the industry and effectively destroying a company that had operated for three decades.
Wall Street saw the writing on the wall as Getty’s shares cratered 99%. In recent months, it has reported $2.1 billion in debt, withdrew financial guidance, and the New York Stock Exchange delisted the stock. It entered into a restructuring agreement, targeting completion by year-end. It plans to launch an expedited Chapter 11 process in the coming weeks. A proposed merger with industry rival Shutterstock failed.
The final nail in its coffin: Getty announced on Oct. 12 that it plans to file for bankruptcy and go private. Getty family affiliates and Koch Equity Development will own 100% of the company, and investors have pledged up to $533 million in new equity.
Officials are optimistic that the content provider can start a new chapter. Mike Harris, senior managing director and co-head of Koch Equity Development, said in a news release:
“Getty Images is a unique and critical source of authentic imagery for its customers. We remain confident in the company’s future and fully support this transaction alongside the Getty family. This equity investment will provide Getty Images with a firm financial foundation and greater flexibility to continue investing in its employees, customers, contributors, and future growth.”
Or perhaps it is a cautionary tale that every company needs to be prepared for tomorrow.
Signs in 2023
It might feel like ancient times, especially in the world of AI, but in 2023, signs were everywhere that the revolutionary technology was on the cusp of perfection.
The videos of Will Smith eating spaghetti were goofy and unintelligible, but every year the iconic image improved. Today, the average person can produce a high-quality 15-second clip of the Fresh Prince of Bel-Air star eating spaghetti, penne, rigatoni, or rotini with a basic one-sentence prompt. Users can create still images of Will Smith holding a pasta bowl or making linguine in ChatGPT, Copilot, Gemini, or Grok.
What’s more, AI-generated outputs largely fall into the public domain. The US Copyright Office and federal courts have determined that content created by AI from text prompts is not subject to copyright protection, meaning others can recycle and reuse without permission.
So, how do you monetize this type of content? Plenty of ideas are surfing the World Wide Web, but that's for the entrepreneurial spirit to determine.
Creative Destruction
Over the last several decades, scores of well-known brands have failed to remain king of the mountain. BlackBerry avoided full-touch smartphones, Blockbuster refused to adopt a digital strategy, Kodak ignored digital photography, and Sears has become a distant memory for not embracing e-commerce.
Put simply, creative destruction drives inventions and innovations that eventually replace obsolete businesses, products, and technologies. If entrepreneurs or corporations struggle to acclimate and stay on the sidelines, they will be left behind. Critics argue that new tech displaces people, ignoring that the same technology also creates entirely new industries and more jobs.
Getty will be the first of many victims in the AI revolution.
