Key Stats for Getty Images Stock
- 1-day Price Change for Getty Images stock: -6.5%
- $GETY Share Price as of Oct. 31: $1.88
- 52-Week High: $4.49
- $GETY Stock Price Target: $4.43
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What Happened?
Getty Images (GETY) stock declined more than 6% on Friday after the visual content company announced a major multi-year licensing deal with AI search startup Perplexity.
The agreement enables Perplexity to showcase Getty’s creative and editorial imagery across its AI-powered search platform, marking another significant partnership in Getty’s strategy to monetize its content in the era of artificial intelligence.
Under the deal, Perplexity will integrate Getty Images’ content directly into its search results through Getty’s API technology.
The AI company will also enhance its image display by adding proper credits and links back to the source—a key concern for Getty as it works to protect its content from unauthorized AI training.
“We are pleased to reach this agreement with Perplexity, which acknowledges the importance of properly attributed content and its value in enhancing AI-powered products,” said Nick Unsworth, Getty’s Vice President of Strategic Development.
The partnership represents a win for Getty in its broader push to establish licensing relationships with AI companies rather than having its content scraped without permission.
Getty has been at the forefront of pushing for proper compensation when AI companies use copyrighted material, even filing lawsuits against companies like Stability AI for allegedly training models on Getty’s images without authorization.
Jessica Chan, Perplexity’s Head of Content and Publisher Partnerships, emphasized that attribution matters to both companies. “Getty Images shares our belief that the future of AI-powered discovery requires respecting the creators behind the content,” Chan said in the announcement.
The deal comes at a crucial time for Getty Images stock, which has struggled this year amid broader challenges in the advertising and creative industries. Shares are down 50% in the past year, as the company navigates ongoing weakness in its agency business and awaits regulatory approval for its proposed merger with competitor Shutterstock.
Getty reported Q2 revenue of $234.9 million, up just 2.5% year-over-year. While subscription revenue continues to grow—particularly through its Premium Access and Unsplash+ offerings—the company’s creative business has been under pressure.
Agency revenue, which sits entirely within the creative segment, declined 10% in the quarter as advertising clients pulled back spending.
However, Getty’s “Other Revenue” category, which includes data licensing deals with AI companies, jumped to $15.7 million in Q2—the highest level ever recorded.
Getty has already struck similar licensing agreements with tech giants, including Google, OpenAI, and Bloomberg, generating meaningful incremental revenue from these partnerships.
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What the Market Is Telling Us About GETY Stock
The negative reaction to the Perplexity deal indicates that investors do not view AI licensing as a critical new revenue stream for Getty Images stock.
While traditional creative and editorial licensing faces headwinds, partnerships with AI companies provide a way to monetize Getty’s vast archive of over 477 million images and videos.
Getty’s approach is in stark contrast to some competitors who’ve taken a more confrontational stance with AI companies.
By establishing formal licensing agreements that include proper attribution and compensation, Getty is positioning itself as the preferred partner for AI platforms seeking to utilize high-quality visual content legally.
The timing is notable given Getty’s ongoing merger with Shutterstock, which is expected to close by the end of 2025 pending regulatory approval.
Combining the two largest stock photo companies would create a powerhouse with even greater negotiating leverage when dealing with AI companies seeking content licenses.
Beyond the Perplexity deal, Getty reported some encouraging metrics in Q2. The annual subscriber count increased by 14% to 321,000, with retention rates improving to 93.4% from 89.4% the previous year.
The company’s Premium Access subscription, which accounts for about a third of total revenue, saw its retention rate climb back above 100% for the first time since 2023.
CFO Jenn Leyden highlighted that corporate customers continue to show strength despite macroeconomic uncertainty.
That segment, which represents 58% of total revenue, posted high single-digit growth in Q2. Editorial content also performed well, driven by coverage of major events like Formula 1 racing and the FIFA Club World Cup.
However, Getty Images stock faces real challenges, given it ended Q2 with $1.39 billion in debt and a net leverage ratio of 4.3x.
Management expects flat to low single-digit revenue growth for the full year, partly due to the uneven editorial events calendar and continued weakness in the production industry following the Hollywood strikes.
The Perplexity partnership provides a bright spot and validates Getty’s strategy of embracing AI through licensing, rather than relying solely on litigation.
If the company can continue to sign similar deals with other AI platforms while the Shutterstock merger moves forward, Getty Images stock could have more upside ahead despite its near-term challenges.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
