The acquisition of Envato by Shutterstock has sparked a mix of reactions among industry observers and contributors. What effect will it have on the community? What changes should the authors get ready to face? How good or bad is it for contributors? Let’s discuss the key points regarding Envato’s acquisition and weigh all the pros and cons of this move.
Major Highlights
On July 22, 2024, Shutterstock (the leading global provider of quality visual content for digital media and brands related to different industries and fields) completed the acquisition of Envato (the leading provider of creative digital assets and templates).
What does this move hold? Here are several major considerations:
- As a result of the acquisition, Shutterstock’s collection of digital assets was enriched with offerings already available for download from Envato Elements.
- Shutterstock expanded its reach to 650,000 subscribers, totaling its customer base to 1.15 million.
- Shutterstock expands its reach to an active community of freelancers, small businesses, and agencies.
- Adding new content types like audio and video assets, graphics, and templates multiplies Shutterstock’s revenue. The platform’s content library was diversified with 1 million images, 6 million videos, 1 million audio clips, stunning graphics, fonts, and web templates.
- In addition to adding quality images to its collection, Shutterstock can now treat its community with new content types that have never been available for download from the platform before. These include web themes, presentation templates, designs for social posts, gaming, and podcasts, among others.
“We are thrilled about this transaction and look forward to welcoming the Envato team to Shutterstock,” said Shutterstock CEO Paul Hennessy.
“Envato is ideally suited to meet customers’ growing need for unlimited, multi-resource subscriptions to a library of creative content focusing on video, audio, graphics, fonts, and templates. By expanding our reach to a rapidly growing audience and covering additional types of content, this acquisition will help Shutterstock achieve its mission to ensure customers have access to the content they need, wherever they are, so that they can create and share their next big idea.”
“Since its humble beginnings in a Sydney garage, Envato has generated over $1.3 billion in revenue for its community of creators and expanded to over 650,000 subscribers. I have tremendous pride in the team for achieving such global scale as an independent business,” added the CEO Envato Hichame Assi. “As we move into this next chapter, we remain focused on empowering the creative community and are excited to achieve this shared goal with Shutterstock.”
Former CEO and co-founder Collis TaEdd expressed gratitude to the community, saying he is “deeply grateful to all those who have played a role, large or small, in our collective history.” Taeed added: “I will be cheering on from the sidelines because I am confident that there is a shared commitment to innovation and creativity, as well as an ongoing commitment to our values.”
The recent webinar, “Is This the Death of CodeCanyon and ThemeForest?,” delves into the concerns surrounding the evolving marketplace dynamics for selling plugins and themes on ThemeForest and CodeCanyon. In this engaging panel discussion, industry experts explore the implications of the acquisition for software products listed on Envato’s platforms, offering valuable insights for authors navigating these changes. A key takeaway from the session is the advice for authors to actively seek alternative selling avenues, including the possibility of selling non-exclusively on Envato. This webinar provides crucial strategies and potential alternatives for software makers to consider in the shifting Envato landscape.
Benefits for Envato Authors
Shutterstock’s ownership has caused ambiguous reflections from Envato authors. Such big moves bring a certain degree of uncertainty, especially in the early days following the acquisition. Such big moves commonly bring pros and cons, especially to the party that was acquired. However, Envato authors should meet such changes positively because of the benefits they can drive from the acquisition. Let’s name a few.
- Broader Audience. Shutterstock’s acquisition could significantly enhance the visibility of Envato’s products across a more extensive customer base. With Shutterstock’s established presence in the stock media market, Envato authors may gain access to new clients, including freelancers, small businesses, and agencies previously unaware of Envato’s offerings.
- Cross-Promotion Opportunities. Integrating Envato’s assets into Shutterstock’s platform could lead to cross-promotion, allowing Envato authors to reach potential customers who subscribe to Shutterstock. Still, it may have yet to engage with Envato directly. This could result in increased sales and exposure for their products.
- Increased Subscriber Base. The acquisition is expected to double Shutterstock’s subscriber count, potentially leading to a collective increase in earnings for Envato authors as new customers explore and purchase their products. This expanded subscriber base could provide a larger pool of potential buyers for Envato’s themes, plugins, and other digital assets.
- Access to New Markets. Envato has struggled to penetrate enterprise markets effectively. However, with Shutterstock’s established sales pipeline, there is potential for Envato to attract high-volume customers, which could translate into higher sales volumes for authors.
- Integration of Diverse Content Types. The acquisition will allow Shutterstock to diversify its content offerings, incorporating Envato’s extensive design assets, templates, and code library. This diversification may create new opportunities for authors to market their products in various formats, potentially increasing their revenue streams.
Concerns from Contributors
Besides the benefits both parties can derive from the acquisition, Envato contributors share concerns associated with this grand move. Many contributors express concern that Shutterstock’s acquisition could reduce authors’ earnings. Previous experiences with Shutterstock have led some to believe that the company may lower the percentage of revenues shared with contributors, similar to changes seen after past acquisitions in the industry.
Some contributors worry that the acquisition might destabilize the Envato marketplace, particularly for platforms like ThemeForest and CodeCanyon. They fear these could be closed or significantly altered, impacting the livelihoods of many authors.
Contributors recall that similar acquisitions have often led to adverse outcomes for content creators. For instance, the acquisition of Pond5 did not initially result in significant changes, but the long-term effects still need to be determined.
What outcomes shall we witness following Envato’s acquisition? Only time will show.
Potential Growth for Envato Elements
The acquisition of Envato by Shutterstock could significantly impact the growth and development of Envato Elements, Envato’s popular subscription-based service. Let’s consider some potential ways the acquisition might influence Elements.
- The acquisition is expected to double Shutterstock’s subscriber base, potentially leading to a surge in Envato Elements subscribers. This expanded customer pool could drive significant growth for the platform.
- By integrating Envato’s extensive library of design assets, templates, and graphics into Shutterstock’s platform, Elements may gain exposure to a broader audience of creatives and businesses. This integration could lead to cross-promotion opportunities and increased sales for Elements subscribers.
- As Shutterstock aims to expand its subscription base, there may be a stronger emphasis on subscription-based models like Envato Elements. This shift could prioritize assets that fit within a subscription framework, potentially leading to more investment and development in the Elements platform.
- The acquisition may open up opportunities for Envato Elements to diversify its offerings beyond design assets, incorporating a wider range of creative content types such as stock footage, illustrations, and more. This diversification could attract new subscribers and keep the platform competitive in the evolving creative asset market.
What Are Your Thoughts on This?
Overall, the sentiment surrounding Shutterstock’s acquisition of Envato is mixed. While there are concerns about potential negative impacts on earnings and market stability for contributors, there are opportunities for growth and increased visibility within a larger platform. The outcome will depend on how Shutterstock integrates Envato and manages its contributor relationships moving forward.
What are your reflections on Shutterstock’s Envato acquisition? Have you used Elements before or contributed to the platform? How do you think this move brings more good or bad outcomes to both communities, particularly Envato?
Your opinion matters to us, so feel free to share your thoughts in the comments. We have our own view on this situation and have several ideas for its direction. Stay tuned, and we’ll share our ideas and forecasts in our new article soon!
