Shutterstock sees growth with Canadian firms

New York company uses Flashstock, PremiumBeat for original content

Shutterstock is turning to Canada to help reinvent itself.

The New York-based company, which rose to prominence last decade by amassing a vault of stock photos just as advertising on Facebook, Google and Instagram exploded, is moving more into original content. It announced the purchase of Toronto-based Flashstock for $50 million in June to offer companies access to photographers and videographers. That builds on its $32-million purchase of Montrealbased PremiumBeat in 2015, which gave it access to a network of musicians composing new tunes.

“Brands want images that haven’t been used by other brands, brands want images with their product in the shot,” said Jon Oringer, Shutterstock’s founder and CEO.

The Flashstock acquisition allows the company to do that. “That’s going to be a big deal and a game-changer for us and for those advertisers.”

Shutterstock needs a new wind. Profit is down and shares have lost 45 per cent in the past 12 months as growth slows. Being a repository for online advertisers isn’t enough anymore as competitors from legacy players Getty Images to startups like Toronto-based 500px push into that market. Following four acquisitions since 2014, the company is trying to integrate its offerings, add its own editing tools, and meet rising demand for tailored advertising.

Shutterstock, which is headquartered in the Empire State building, now employs almost 200 people in Canada. In Montreal, Shutterstock is expanding its office to take over the floor of a building on a lively commercial street.

The company, created by a father and son in 2005, now has 72 employees in Montreal and a network of 500 or so musicians around the world who compose pieces in formats that can easily be sliced up to fit in short videos. Staff curates the work so that customers can browse the catalogue by genre or mood, ranging from sensual to patriotic.

The model is hassle-free for advertisers or businesses who buy rights for a one-time fee. The system also suits the artists who are looking for an immediate income stream: they get paid upfront rather than when songs are downloaded.