Industry leaders Getty Images and Shutterstock are exploring a potential merger amid declining revenues and growing competition from AI image generators, highlighting a potential shift in the stock image industry landscape.
Getty Images Holdings is considering a strategic merger with rival Shutterstock, as reported by Bloomberg News, in a move that could unite two of the largest U.S. providers of licensed visual content. The news has already impacted market confidence, with Getty's shares rising 20.3% and Shutterstock's shares climbing 7.7% in afternoon trading.
Getty Images has been struggling to maintain its customer base, with both its creative and editorial products - two of its largest revenue segments - showing year-over-year declines in 2023.
This market pressure coincides with the rising popularity of AI tools like Midjourney and DALL-E 2, which can generate unique images quickly and at lower costs than traditional licensing models.
Seattle-based Getty Images, founded in 1995, has seen significant market challenges, with its shares losing 58.9% of their value over the past year. The company, which operates brands including Getty Images, iStock, and Unsplash, serves enterprise, media, and agency customers.