AI is shaking up the image banking business. Getty Images and Shutterstock have decided to merge to resist

Before the rise of generative artificial intelligence (GenAI), stock image pages, both paid and free, were one of the most valued options by advertising agencies, media and other related sectors. If you needed an image to accompany a project, it is very likely that these services had just what you were looking for.

But things have changed in recent years. Many who currently need images of generic products, urban landscapes, illustrations or thematic scenes, find a solution in the power of algorithms, moving beyond image banks. In the midst of this scenario, industry giants Getty Images and Shutterstock have decided to join forces with a merger.

Getty Images and Shutterstock merge amid generative AI boom

The aforementioned companies will be integrated to create a single visual content firm, whose value will reach 3.7 billion dollarss. According to the statementthe operation will allow it to offer “a content library with greater depth and breadth for the benefit of clients, greater opportunities for its community of collaborators and a reinforced commitment to the adoption of inclusive and representative content.”

The current CEO of Shutterstock, Paul Hennessy, mentioned that among the benefits of the merger is the optimization of costs and cash flow. Certainly, the economic aspect is key. For now, the market reacted positively to the news, benefiting Getty shares with a rise of up to 61% in pre-market trading and a 32% rise for Shutterstock.

The firms also hope to boost their generative AI solutions. At the beginning of the recent revolution it was not clear which side they would take. In 2022, rumors surfaced that Shutterstock had been removing AI-created images and they publicly expressed their concerns. copyright concerns. They then launched a plan to pay creators, and launched their own GenAI tool. Getty followed the same path and introduced its own generative AI.

The merger agreement between Shutterstock and Getty has been approved by their respective boards of directors and is now awaiting approval from regulators. Should everything go as planned, Getty Images CEO Craig Peters will take on the role of leading the combined companies, while Shutterstock will continue to operate as an independent service.

Images | Jamie Street | Brooke Cagle

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