Why the photo studio that’s offering free photo editing tools is worth $15,000
Posted October 01, 2018 09:05:37The photo studio operator who recently turned down a deal to make $15 million in revenue for a video-editing software business has been offering free editing tools for a year, and is still offering them to its customers.
That’s according to a new report from New York Magazine.
The photo studio is called PhotoStudio and is offering a free version of its editing software, called PhotoEditing Plus.
Its owner, photographer and video producer Andrew Hsieh, says the software is “a really great app” that he has used for “some really good editing and video work.”
The company’s founder, Andrew Hsi, has previously said that he made $2.7 million in a one-year period from selling PhotoEdging Plus, and that it was “the best business I ever had.”
But the company’s business model, as we reported in February, was based on “the idea that you can get a free product and then, after you buy it, it’s going to be really, really valuable to you in the long run,” he told Bloomberg in January.
In addition to the PhotoStudio app, the company offers editing tools such as Adobe Photoshop CS6, Adobe Lightroom CS6 and Adobe Premiere Pro CC, among others.
Hsieh told New York that PhotoStudio is “the biggest, fastest, easiest business I’ve ever been in,” and that “we had a really, big, great, long-term vision.”
Hsiez, who was hired as CEO by Hsiehs family-owned photography studio in 2015, has also been offering his customers free editing software in the past, according to Bloomberg.
The New York article reports that Photo Studio’s revenue has been growing since 2014, though it was a “slump” in 2016, so its business model was “on hold” during the 2016 election.
“It’s not a great business,” Hsiey said.
“It’s the biggest, slowest business I have ever been involved with.
We’re a very slow, very slow business.”
Bloomberg News reported that Photo Studios revenue has declined from $4.2 million in 2016 to $2 million at the end of the year.
The company had about 1,500 employees at the time it was spun off from Hsieys family company, with the majority of its employees based in New York.
It has since expanded to other cities, including Los Angeles and Toronto.
Hsi told Bloomberg that the company was still operating under a licensing agreement, though the company “was never really happy” with it.
He also said that the software “didn’t have a long life,” so it was difficult to “turn it into a business.”
Hsi also told Bloomberg News that the licensing deal that he and his partner signed with Adobe “made it easy for us to sell the business.”
The New York magazine report says that the photo-edits are “still a very good product” and that PhotoLab is the best “commercial product” he has worked on.
But Hsies family company “has been struggling” and is “not the fastest business I’m involved in,” he said.
Hsing Yi, PhotoStudio’s chief executive, told Bloomberg on Tuesday that the free tools are not a “compromise,” but are instead “a big boost for our customers.”
“Our business model is really, very different than the ones that have been around for a long time,” he added.
“If you think about it, PhotoLab has been around since the 1970s and has been a big part of the history of video editing.”
We have to continue to keep our customers satisfied and happy, he added, and the company is committed to “the long term.”