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p.1 #15 · p.1 #15 · Sports Illustrated lays off all staff photographers | |
+1 @ Dave not defending, but ...
There is an aspect to this that is a reality to a different expectation of what "Free Enterprise" is.
Saddled between consumerism expecting "FREE" and the addition burdens exacted upon companies by others (i.e. less free @ gov, etc.) ... it becomes a diff realm in what the valuation for a transaction is @ mutually agreeable. When the buyer's price is "FREE" and there are sellers willing to agree to sell for free, then a mutually agreed transaction occurs @ what the market will bear.
That's not to say that SI won't pay their freelancers for quality work @ survival of the fittest, but there is a relationship @ cost to produce (i.e. government burdens, etc.) and revenue generated. So, when the costs to produce are increased (new ObamaCare burdens, new fees, new tax rate) ... coupled with dwindling revenue and projections that they'll move even lower, it is at least understandable, no matter how unpalatable.
I've spoken with some in the paper & pulp industry (i.e. makers of magazine paper) and they are legitimately concerned @ how to stave off the decline in paper product consumption. I can help them understand how to reduce their cost to produce through improved MRO ... but I don't pretend to have the answer to their declining consumption and corresponding revenue reduction.
The ones I've spoken with are starting to shift their strategy to consider how to increase the visual quality of the paper experience, while others are starting to shift toward other paper products that cannot be replicated electronically (i.e. packaging, etc.).
Of course, there is no such thing as a "Free Lunch" ... sooner or later, somewhere the price gets paid and/or lunch stops being served. That, or maybe you have to change from Filet Mignon to McDonald's because of who's picking up the tab now. Either way, if the consumer and advertisers aren't willing to pick up the tab (alternate options, etc.) and the gov keeps raising the cost to produce ... the laws of supply & demand will do what they do.
That said ... yes, I realize that SI probably could easily absorb the cost of a measly SIX staffers. Some bean counter is pressured to cut costs in order to save the $$$. I figure that is about a $1 million dollar (or so) annual swing @ wages, benefits, retirement, SS, etc. that will become about $250K (1/4) - $333 (1/3) in freelance wages only ... recognizing that wages alone can make up less than 1/2 the total costs to carry an employee.
But, often times it isn't just about the money @ the staff ... but it is a message to the board or the shareholders that management is DOING SOMETHING to offset the decline in revenue, trying to save face and/or retain the confidence of those backing them. As such, the staffers become the sacrificial lamb, while they struggle to address the root issues for the revenue decline ... and a strategy for moving forward in these paper vs. digital vs. free (consumer & provider) times.
BTW ... hmmm @ how much this is delayed fallout from Getty declining the market.
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