We have made a significant investment in wholly owned royalty free images over the past few years. Because we own and produce such a high volume of quality images, we are able to create innovative packages to meet our customers' increasing needs for imagery, access and pricing flexibility. In addition to being the world-leader in royalty free subscription services, we have recently launched an exciting new ofering called BYCOD (Build Your Own CD). This program allows customers to select exactly the images that they need from our vast RF collections.

Since Royalty Free (RF) CDs first appeared over a decade ago, customers have been requesting the option to select the images that they would like for their custom CD, versus the industry practice of purcashing a CD of pre-selected images. Historically, studies and surveys have shown that customers use an average of 2 to 5 images from a typical CD of 100 images. This makes purchasing a traditional RF CD a good investment for customers that use high resolution images, but is still leaves a large number of images that go unused.

With the average cost of a high resolution RF image over $300, the idea of allowing a customer to select the images that they want in order to create their own custom CD has always been cost prohibitive. At retail costs, 100 customer-selected images at $300 would be $30,000. Even 10 images would cost $3,000, which is more than most unlimited subscription offerings. The fear in the industry has been that lowering the costs to make this an affordable option would cannibalize single image sales.

Our new BYOCD program offers the ability to build custom CDs of 10, 25, 50 or 100 images with prices from $20 to $50 per image. Customers are now able to access quality stock images produced by professional photographers at a fraction of their retail price. This continues our efforts to provide alternative and interesting image solutions to the creative market place.

We continue to innovate and revolutionize the stock photo industry.