Shutterstock’s acquisition of CodeCanyon and ThemeForest worries many authors and users of these platforms. However, it’s too early to discuss imminent closures or catastrophic changes.
Such big moves commonly bring significant shifts. We couldn’t stand aside such a big event and want to share our thoughts on this with you. So, if you are an author on CodeCanyon or ThemeForest or a concerned customer worried about the platforms’ future, we invite you to join a further discussion and try to figure out what the future holds.
Does this acquisition mean the death of CodeCanyon and ThemeForest? What are the next steps you should take?
Let’s discuss.
Disclaimer: These are just our reflections. We do not claim that our opinion is correct or that the authors should blindly follow our recommendations.
TL;DR
- Shutterstock is acquiring Envato for $245 million in an all-cash deal.
- The acquisition marks the end of Envato’s independence, leading to uncertainties about future changes in leadership and priorities.
- Envato authors are concerned about how the acquisition affects support for code-based creators and individual earnings.
- The merger could combine Shutterstock’s broad reach with Envato’s rich content base.There are worries that the acquisition might alter the unique culture that has supported WordPress developers and authors at Envato.
Brief Backstory
If you’re not familiar with Envato, here’s a quick overview.
Envato owns popular sites like ThemeForest and CodeCanyon, which generate millions annually from selling WordPress themes and plugins. These sales also drive significant revenue for hosting and agency services related to these products.
ThemeForest features top-selling themes like Avada, which has over 950,000 sales, while CodeCanyon offers WPBakery Page Builder, which has over 400,000 sales and is widely integrated into ThemeForest themes.
Envato Elements, their subscription service, provides assets like photos, fonts, graphics, and Elementor templates to enhance website design. Over 4,000 Elementor Template Kits are available.
Despite Envato’s contributions to the WordPress ecosystem, there has been tension. The WordPress Foundation has banned Envato and its employees from sponsoring or speaking at WordPress events for over a decade due to Envato’s non-GPL licensing for WordPress products.
What Options Do Envato Authors Have?
We cannot say Shutterstock’s acquisition of Envato was a big surprise for the community. There were rumors in the community, and everyone was waiting for the Envato leaderboard to take the lead and announce the deal before it was closed. However, it didn’t happen, which has made most authors selling in the marketplace start thinking about their new action plans.
What options do Envato authors have? Here are several ideas that lay on the ground:
- Stay on ThemeForest until the end, even if the sales continue dropping and the traffic minimizes. This will allow you to continue to receive income from already posted works but does not provide guarantees for the future.
- Become a non-exclusive author and post your portfolio on your website and other marketplaces. This will diversify the risks and open up new opportunities for promotion.
- Leave ThemeForest for your website and other platforms. This radical step can only be justified by severe negative changes in the Envato Market. ThemeForest can be left as a source of leads.
Think of a Plan B
Acquisitions bring significant changes. If you are an author selling on CodeCanyon or ThemeForest, think of a Plan B as soon as possible. If you decide to stay on the platforms, it will be wise to shift to a non-exclusive approach and make your products available for download somewhere else rather than the marketplace. Whatever you sell – themes or plugins – prepare your works to switch to a different business model to make the switch easier.
Think about your audience, or familiarize yourself with the users who downloaded your products from the marketplace. Collect the email addresses of your buyers to ensure you own the database and can further organize marketing campaigns and other initiatives to keep people with your brand. How can I do it if the marketplace owns all the information about my product sales? Play tricky and a registration form when someone activates your plugin or theme. It doesn’t affect your product’s usability, but you get valuable information – your customer’s contact.
A few other recommendations for authors to consider include the following:
- Keep a close eye on Shutterstock and Envato Market news and policy changes.
- Gradually diversify your presence by posting your work on other platforms.
- Develop your own promotion and sales channels to reduce dependence on one platform.
- Participate in discussions and express your position to influence Shutterstock and Envato’s decisions.
We should expect official statements from Shutterstock and Envato Market shortly regarding their plans for CodeCanyon and ThemeForest. This will help authors make informed decisions about future participation in these marketplaces.
Shutterstock and Envato, Your Turn!
Envato will remain as is in the short term, with few noticeable changes for customers and subscribers. The main loss is its independence, as it will now prioritize shareholder value. Although not perfect, Envato was a good example of fostering partnerships with independent creators.
This acquisition might encourage Envato’s WordPress authors and the WordPress community to collaborate more closely. Now could be the perfect time to unite designers, developers, marketers, and WordPress experts to contribute to the core rather than just benefiting from it.
There’s no information yet on how this will affect Envato’s leadership, priorities for its creator community, or employees. It’s also unclear if Envato will keep its BCorp certification after the acquisition.
At the end of the day, we all anticipate Shutterstock and Envato making an official statement after the acquisition to clarify things for the community.
