Random Thoughts – Randocity!

Rant Time: Flickr is running out of time & money?

Posted in botch, business, california by commorancy on December 19, 2019

Flickr2I received a rather questionable email about Flickr allegedly from Don MacAskill, CEO of SmugMug.

Unfortunately, his email is also wrapped in the guise of email marketing and arrived through the same marketing channel as all other email marketing from Flickr.

Don, if you want us to take this situation seriously, you shouldn’t use email marketing platforms to do it. These emails need to come personally from you using a SmugMug or Flickr address. They also shouldn’t contain several email marketing links. An email from the CEO should contain only ONE link and it should be at the very bottom of the email.

The information contained in this letter is not a surprise in general, but the way it arrived and the tone it takes is a surprise coming from a CEO, particularly when it takes the format of generic email marketing. Let’s explore.

Flickr Pro

I will place the letter at the bottom so you can it read in full. The gist of the letter is, “We’re running out of money, so sign up right away!”

I want to take the time to discuss the above “running out of money” point. Here’s an excerpt from Don’s email:

We didn’t buy Flickr because we thought it was a cash cow. Unlike platforms like Facebook, we also didn’t buy it to invade your privacy and sell your data. We bought it because we love photographers, we love photography, and we believe Flickr deserves not only to live on but thrive. We think the world agrees; and we think the Flickr community does, too. But we cannot continue to operate it at a loss as we’ve been doing.

Let’s start by saying, why on Earth would I ever sign up for a money losing service that is in danger of closing? Seriously, Flickr? Are you mad? Don’t give me assurances that *I* can save your business with my single conversion. It’s going to take MANY someones to keep Flickr afloat if it’s running out of money. Worse, sending this email to former Pro members trying to get us to convert again is a losing proposition. Send it to someone who cares, assuming there is anyone like that.

A single conversion isn’t likely to do a damned thing to stem the tide of your money hemorrhaging, Flickr. Are you insane to send out a letter like this in this generic email marketing way? If anything, a letter like this may see even MORE of your existing members run for the hills by cancelling their memberships, instead of trying to save Flickr from certain doom. But, let’s ignore this letter’s asinine message and focus on why I decided to write this article.

Flickr is Dead to Me

I had an email exchange in November of 2018 with Flickr’s team. I make my stance exceedingly clear exactly why I cancelled my Pro membership and why their inexplicable price increase is pointless. And yes, it is a rant. This exchange goes as follows:

Susan from Flickr states:

When we re-introduced the annual Flickr Pro at $49.99 more than 3 years ago, we promised all grandfathered Pros (including the bi-annual and 3-month plans) a 2-year protected price period. We have kept this promise, but in order to continue providing our best service to all of our customers, we are now updating the pricing for grandfathered Pros. We started this process on August 16, 2018.

With this being the case, bi-annual Pros pay $99.98 every 2 years, annual Pros pay $49.99 every year, and 3-month Pros pay $17.97 every 3 months. Notifications including the price increase have been sent out to our users starting from August 16.

I then write back the following rant:

Hi Susan,

Yes, and that means you’ve had more than ample time to make that $50 a year worth it for Pro subscribers. You haven’t and you’ve failed. It’s still the same Flickr it was when I was paying $22.48 a year. Why should I now pay over double the price for no added benefits? Now that SmugMug has bought it, here we are now being forced to pay the $50 a year toll when there’s nothing new that’s worth paying $50 for. Pro users have been given ZERO tools to sell our photos on the platform as stock photos. Being given these tools is what ‘Pro’ means, Susan. We additionally can’t in any way monetize our content to recoup the cost of our Pro membership fees. Worse, you’re displaying ads over the top our photos and we’re not seeing a dime from that revenue.

Again, what have you given that makes $50 a year worth it? You’re really expecting us to PAY you $50 a year to show ads to free users over the top of our content? No! I was barely willing to do that with $22.48 a year. Of course, this will all fall on deaf ears because these words mean nothing to you. It’s your management team pushing stupid efforts that don’t make sense in a world where Flickr is practically obsolete. Well, I’m done with using a 14 year old decrepit platform that has degraded rather than improved. Sorry Susan, I’ve removed over 2500 photos, cancelled my Pro membership and will move back to the free tier. If SmugMug ever comes to its senses and actually produces a Pro platform worth using (i.e., actually offers monetization tools or even a storefront), I might consider paying. As it is now, Flickr is an antiquated 14 year old platform firmly rooted in a 2004 world. Wake up, it’s 2018! The iStockphotos of the world are overtaking you and offering better Pro tools.

Bye.

Flickr and SmugMug

When Flickr was purchased by SmugMug, I wasn’t expecting much from Flickr. But, I also didn’t expect Flickr to double its prices while also providing nothing in return. The platform has literally added nothing to improve the “Pro” aspect of its service. You’re simply paying more for the privilege of having ads placed over the top of your photos. Though, what SmugMug might claim you’re paying for is entirely the privilege of the tiniest bit more storage space to store a few more photos.

Back when storage costs were immense, that pricing might have made sense. In an age where storage costs are impossibly low, that extra per month pricing is way out of line. SmugMug and Flickr should have spent their time adding actual “Pro” tools so that photographers can, you know, make money from their photos by selling them, leasing them, producing framed physical wall hangings, mugs, t-shirts, mouse pads, and so on. Let us monetize our one and only one product… you know, like Deviant Art does. Instead, SmugMug has decided to charge more, then place ads over the top of our photos and not provide even a fraction of what Deviant Art does for free.

As a photographer, why should I spend $50 a year on Flickr only to gain nothing when I can move my photos to Deviant Art and pay nothing a year AND get many more tools which help me monetize my images? I can also submit them to stock photo services and make money off of leasing them to publications, something still not possible at Flickr.

Don’s plea is completely disingenuous. You can’t call something “Pro” when there’s nothing professional about it. But then, Don feels compelled to call out where they have actually hosted Flickr and accidentally explains why Flickr is losing money.

We moved the platform and every photo to Amazon Web Services (AWS), the industry leader in cloud computing, and modernized its technology along the way.

What modernization? Hosting a service on AWS doesn’t “modernize” anything. It’s a hosting platform. Worse, this hosting decision is entirely the cause of SmugMug’s central money woes with Flickr. AWS is THE most expensive cloud hosting platform available. There is nothing whatsoever cheap about using AWS’s storage and compute platforms. Yes, AWS works well, but the bill at the end of the month sucks. To keep the lights on when hosting at AWS, plan to spend a mint.

If SmugMug wanted to save on costs of hosting Flickr, they should have migrated it to a much lower cost hosting platform instead of sending empty marketing promises asking people to “help save the platform”. Changing hosting platforms might require more hands on effort for SmugMug’s technical staff, but SmugMug can likely half the costs of hosting this platform by moving it to lower cost hosting providers… providers that will work just as well as AWS.

Trying to urge past subscribers to re-up into Pro again simply to “save its AWS hosting decision”, not gonna happen. Those of us who’ve gotten no added benefit by paying money to Flickr in the past are not eager to return. Either give us a legitimate reason to pay money to you (add a storefront or monetization tools) or spend your time moving Flickr to a lower cost hosting service, one where Flickr can make money.

Don, why not use your supposed CEO prowess to have your team come up with lower cost solutions? I just did. It’s just a thought. You shouldn’t rely on such tactless and generic email marketing practices to solve the ills of Flickr and SmugMug. You bought it, you have to live with it. If that means Flickr must shutdown because you can’t figure out a way to save it, then so be it.

Below is Don MacAskill’s email in all of its unnecessary email marketing glory (links redacted):

Dear friends,

Flickr—the world’s most-beloved, money-losing business—needs your help.

Two years ago, Flickr was losing tens of millions of dollars a year. Our company, SmugMug, stepped in to rescue it from being shut down and to save tens of billions of your precious photos from being erased.

Why? We’ve spent 17 years lovingly building our company into a thriving, family-owned and -operated business that cares deeply about photographers. SmugMug has always been the place for photographers to showcase their photography, and we’ve long admired how Flickr has been the community where they connect with each other. We couldn’t stand by and watch Flickr vanish.

So we took a big risk, stepped in, and saved Flickr. Together, we created the world’s largest photographer-focused community: a place where photographers can stand out and fit in.

We’ve been hard at work improving Flickr. We hired an excellent, large staff of Support Heroes who now deliver support with an average customer satisfaction rating of above 90%. We got rid of Yahoo’s login. We moved the platform and every photo to Amazon Web Services (AWS), the industry leader in cloud computing, and modernized its technology along the way. As a result, pages are already 20% faster and photos load 30% more quickly. Platform outages, including Pandas, are way down. Flickr continues to get faster and more stable, and important new features are being built once again.

Our work is never done, but we’ve made tremendous progress.

Now Flickr needs your help. It’s still losing money. Hundreds of thousands of loyal Flickr members stepped up and joined Flickr Pro, for which we are eternally grateful. It’s losing a lot less money than it was. But it’s not yet making enough.

We need more Flickr Pro members if we want to keep the Flickr dream alive.

We didn’t buy Flickr because we thought it was a cash cow. Unlike platforms like Facebook, we also didn’t buy it to invade your privacy and sell your data. We bought it because we love photographers, we love photography, and we believe Flickr deserves not only to live on but thrive. We think the world agrees; and we think the Flickr community does, too. But we cannot continue to operate it at a loss as we’ve been doing.

Flickr is the world’s largest photographer-focused community. It’s the world’s best way to find great photography and connect with amazing photographers. Flickr hosts some of the world’s most iconic, most priceless photos, freely available to the entire world. This community is home to more than 100 million accounts and tens of billions of photos. It serves billions of photos every single day. It’s huge. It’s a priceless treasure for the whole world. And it costs money to operate. Lots of money.

Flickr is not a charity, and we’re not asking you for a donation. Flickr is the best value in photo sharing anywhere in the world. Flickr Pro members get ad-free browsing for themselves and their visitors, advanced stats, unlimited full-quality storage for all their photos, plus premium features and access to the world’s largest photographer-focused community for less than $5 per month.

You likely pay services such as Netflix and Spotify at least $9 per month. I love services like these, and I’m a happy paying customer, but they don’t keep your priceless photos safe and let you share them with the most important people in your world. Flickr does, and a Flickr Pro membership costs less than $1 per week.

Please, help us make Flickr thrive. Help us ensure it has a bright future. Every Flickr Pro subscription goes directly to keeping Flickr alive and creating great new experiences for photographers like you. We are building lots of great things for the Flickr community, but we need your help. We can do this together.

We’re launching our end-of-year Pro subscription campaign on Thursday, December 26, but I want to invite you to subscribe to Flickr Pro today for the same 25% discount.

We’ve gone to great lengths to optimize Flickr for cost savings wherever possible, but the increasing cost of operating this enormous community and continuing to invest in its future will require a small price increase early in the new year, so this is truly the very best time to upgrade your membership to Pro.

If you value Flickr finally being independent, built for photographers and by photographers, we ask you to join us, and to share this offer with those who share your love of photography and community.

With gratitude,

Don MacAskill
Co-Founder, CEO & Chief Geek

SmugMug + Flickr

Use and share coupon code [redacted] to get 25% off Flickr Pro now.

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2 Responses

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  1. Stardreamer said, on December 20, 2019 at 1:18 am

    I got that same letter, I actually forgot I used it once. Usually when they ask for you to pay for something I ignore.

    Liked by 1 person

    • commorancy said, on December 20, 2019 at 1:53 am

      Hi Stardreamer,

      Thanks for your comment. I usually do trash such emails when it’s straight up email marketing dreck. You know those like, “Hey, come buy our thing, it’s 20% off for the holidays.” This email ironically and at once demonstrates SmugMug’s poor handling of Flickr and why it’s in the money-losing state that it’s in. Why are consumers now on the hook to save something so grossly mismanaged? Even worse, they’re targeting people who formerly used the platform as though we’re ever going to come back. That IS desperation.

      It’s not like I really care about Flickr anymore. I don’t. I certainly don’t care at all about SmugMug. I’m long past Flickr’s usefulness. It’s just that when a CEO of a company like SmugMug sends out a plea of desperation to “help save” something which has been so grossly mismanaged and then, even worse, uses straight-up email marketing tactics to deliver that message, I feel compelled to rant. In this case, I felt compelled to rant at not only the CEO’s poor judgement around SmugMug’s management of the Flickr platform itself, but also about the fact that someone on the marketing team diluted his entire message by sending that message as generic email marketing dreck.

      There are so many things wrong with not only that email, but SmugMug itself. SmugMug really is living up to its corporate naming. They most certainly are smug I’ll give them that.

      Thanks for your comment.

      Like


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