Shutterstock CEO Elaborates On The Penske Media Deal

Shutterstock Inc SSTK recently announced Penske Media Corporation (owners of Variety Magazine) to create and license image and videos. Shutterstock CEO Jon Oringer was on CNBC Friday to discuss the terms and significance.

Importance Of The Deal

"We have always been really strong on the commercial side, and our clients have always wanted the editorial side as well," Oringer said. "We bought Rex Features earlier this year, closed on that transaction in January and this is kind of that second piece.

"Partnering with Penske Media allows us to get some of the best red carpet images around the world, some of the best events are covered through them and some amazing historic photography that we are going to be able to feed in to our platform."

'We Both Make Money As We Sell Images'

Oringer was asked to elaborate on the terms of the deal. He replied, "Well, they get royalty for every photo we sell. Kind of works like the rest of our business. We didn't released the exact financial terms, but essentially we both make money as we sell images. In 2016, we become the exclusive distributor of Women's Wear Daily images and Variety.com images."

Adding The Right Content

According to Oringer, "It's not the actual number of images that matter, it's getting the right image to the user at the right time. We are adding millions of images every year, but adding the right content is what matters the most."