Corbis, a privately held company based in Seattle, hasn't disclosed its finances since 2007 when it named Shenk as CEO in an effort to bring in more revenue from licensing rights. At that time, Corbis had about $250 million [actually $252 million] in annual revenue.
The AP's revenue last year totaled $630.5 million, a decline of $117 million, or 16 percent, from 2008. The Corbis deal marks the latest step in the AP's effort to recover some of the revenue that it lost in the past two years as it lowered its fees to help newspapers and broadcasters cope with downturns in their own businesses.
"Now the AP and Corbis are able to provide an alternative to Getty that we feel is superior" across every key category, Corbis CEO Gary Shenk said in an interview.
Shenk said that Corbis and the AP analyzed each other’s focus and realized that there was only about a 10 percent overlap [hard to believe] in each other’s customer base.
AP is strong in newspapers and broadcasting companies, as well as large news portals. Corbis is strong in the magazine segment, both online and print, as well as with advertising agencies and commercial and archival customers.
The AP partnership comes just weeks after Corbis bought Splash News [and the partnership from March between Corbis and ZUMA Press]. Shenk said Corbis was not making Splash News photos available to the AP at this time. Nor will AP get access to some of Corbis’s creative content that has mostly served the advertising market.
"The partnership is limited to the United States at the moment, starting in October", writes BJP additionally.
The quoted articles above are strongly condensed. More details in the press release.