THE BEST OF BOTH WORLDS

Abstract

Reuters established a picture service after its competitors. So why did it enter the picture market when it did? What advantage did late entry give it? How did this new technologically driven business model based on pictures offer the key bridge to the contemporary multimedia company Reuters is today? In this article, the story of the Reuters picture service is told for the first time since it was officially established in 1985. Using Reuters archive, it begins with the purchase of UPI's US pictures service and ends with the contemporary business. It explores the ways Reuters managed to finance the production of pictures; build a new network for the picture service; invest in (and develop) new technologies of distribution, consumption and operation while being constantly on guard through research; study its markets, its competitors and clients; make room for new product lines in the form of news pictures within an already fully operational organisation, and deal with difficulties that resulted from such structural changes. Establishing its picture service during the 1980s not only helped Reuters make a strong entry into the international image market at a time when international news had just entered a new digital era, it also helped Reuters build a strong business and technological model during a period of media industry upheaval. And it used its picture operations to establish an elaborative infrastructure, enabling this forward-looking multimedia business to become a powerful international news agency ready for the future.

Keywords:

• Reuters
• picture service
• international infrastructure

Notes

1. With the rise of United Press (UP) in 1907 (to become UPI in 1953) and fall of the German Wolff after the Second World War (Wilke 49–50).

2. See Boyd-Barrett (The International News Agencies 234–8), Fenby (103–6), Silberstein-Loeb (87–8) and Coopersmith (55–69), but much work is needed.

3. In 1945, Reuters was involved in a pictures’ service with the UK's PA called ‘PA-Reuter Photos Ltd.’, supplying pictures to the UK and its international clients. It withdrew completely in 1965 as it was not interested in a cooperative European photo venture, leaving its representatives disappointed with ‘no picture service to offer when negotiating contracts’ (Read 253, first edition; Moncrieff (131–9); ‘A tumultuous decade: Ten years of change in Reuters news pictures’. In ‘Reuters World’, 104, June 1995, Reuters Archive (RA), London, p. 24).

4. See also Coopersmith 64.

5. See Jonathan Fenby, ‘Glen Renfrew’.

6. In late 1984, new members who had previously worked for the UPI pictures operations would also join the team. The group would be headed by Hans Ouwerkerk who joined Reuters in 1970 as a sales executive and held senior general management positions in Europe and Asia (see ‘Photo experts snapped up’ in ‘Reuters world’ no. 26, December 1984, Reuters Archive (RA), London, p. 8)

7. Crisp, Steve (the 1985 head of the Reuters pictures Brussels desk and the Thomson Reuters chief photographer for the Middle East and Africa). Personal interview. 17 June 2011.

8. Gannett Co., Inc., is an American news, information and communications company. In 1979, the team owned 78 daily newspapers in 33 US states and Guam, a national news service, 7 television and 14 radio stations, outdoor advertising plants in the USA and Canada and 21 weekly newspapers. It was also the founder of the national newspaper USA Today in 1982 (www.gannett.com).

9. Kopleman, Mitch (the 1985 assistant pictures’ editor for North America and Thomson Reuters’ and vice president for broadcast services of the Americas). Personal interview. 28 September 2009. See also the memo sent from Reuters’ management to Hans Ouwerkerk, indicating, perhaps, a disruptive attempt made by AP (see ‘Pictures’ memo sent from PMH to Hans Ouwerkerk, 25 January 1985, Reuters Archive (RA), London.)

10. See ‘Reuter/UPI News Picture Agreement’, 25 June 1984, Reuters Archive (RA), London, pp. 1–3.

11. See ‘Editorial report’, January 1985, Reuters Archive (RA), London, p. 19.

12. See a memo sent by Peter Holland under ‘UPI-Reuters’, 25 June 1984, Reuters Archive (RA), London, p. 1. See also ‘$5.76m deal gives picture service a head start’, in ‘Reuters World’ No. 23, July 1984, Reuters Archive (RA), London, p. 1.

13. Renfrew cited in ‘Reuters and UPI in News Pictures Agreement’, Reuters Press release, June 25. 1984, Reuters Archive (RA), London, p. 1. See also Ruhe cited in ‘$5.76m deal gives picture service a head start’, in ‘Reuters World’ No. 23, July 1984, Reuters Archive (RA), London, p. 1.

14. See service message ‘UPI-Reuters 1STADD Washington 6–25’, 25 June 1984, Reuters Archive (RA), London.

15. See note 14 above.

16. Hans Ouwerkerk cited in one of Reuters’ press releases, 31 December 1984, Reuters Archive (RA), London, p. 3. See also section 2.2.2 under ‘The Reuter network’ in “The Reuter News pictures service guide”, December 1984, Reuters Archive (RA), London.

17. See sections 2.2.7 and 3.1 under ‘high technology’ and ‘how editing centres and desks will inter-relate’ in ‘The Reuter News pictures service guide’, December 1984, Reuters Archive (RA), London.

18. See ‘Pictures/Briefing’, a memo sent to RNA (Reuters North America) staff under Q&A, 27 December 1984, Reuters Archive (RA), London, p. 3.

19. See ‘Reuters News Pictures—Background feature’ under Reuters press release, 31 December 1984, Reuters Archive (RA), London, pp. 3–4.

20. See ‘UPI Photo Library/Bettmann Archive’, Reuters Archive (RA), London; “Pictures/Promotion”, 14 November 1984, Reuters Archive (RA), London, p. 1.

21. See ‘Pictures/Briefing’, a memo sent to RNA (Reuters North America) staff under Q&A, 27 December 1984, Reuters Archive (RA), London, p. 3.

22. See sections 7.1–7.3 in ‘The Reuter News pictures service guide’, December 1984, Reuters Archive (RA), London.

23. Electronic cameras were immediately preferred, and Reuters was waiting for the next generation of cameras (see ‘US and Canada trip, 29 September–4 October 1986’, a memo sent by Hans Ouwerkerk, 9 October 1986, Reuters Archive (RA), London, p. 4).

24. See sections 7.2.5–7.2.10 in ‘The Reuter News pictures service guide’, December 1984, Reuters archive (RA), London.

25. $35 for a picture handed in at a network point, for instance, or $350 for special assignments. See sections 4.4.2–4.4.6 in ‘The Reuter News pictures service guide’, December 1984, Reuters archive (RA), London.

26. See a memo sent to Reuters North America (RNA) under ‘Pictures/briefing’ Q&A, 27 December 1984, Reuters Archive (RA), London, p. 1.

27. See sections 7.1.2–7.1.6 in ‘the Reuter News pictures service guide’, December 1984, Reuters Archive (RA), London.

28. See sections 7.1.3–7.1.6 in ‘the Reuter News pictures service guide’, December 1984, Reuters Archive (RA), London.

29. See sections 7.1.3–7.1.5 in ‘the Reuter News pictures service guide’, December 1984, Reuters Archive (RA), London.

30. At a rate of 56 kbps, the same for linking Reuters’ editing centres, the transmission would even be much faster. See section 7.2.11 in ‘the Reuter News pictures service guide’, December 1984, Reuters Archive (RA), London.

31. See sections 7.1.10–7.1.16 in ‘the Reuter News pictures service guide’, December 1984, Reuters Archive (RA), London.

32. See sections 7.1.12–7.1.13 in ‘the Reuter News pictures service guide’, December 1984, Reuters Archive (RA), London.

33. See sections 7.2.1–7.2.5 in ‘The Reuter News pictures service guide’, December 1984, Reuters Archive (RA), London.

34. The success of the digital transmission process was highly dependent on clients’ receivers. See sections 7.2.4, 7.2.5, 7.2.10 and 7.3.6.2 in ‘The Reuter News pictures service guide’, December 1984, Reuters Archive (RA), London.

35. Hans Owuerkerk cited in section 7.3.1.6 under‘Reuters opportunity’ in ‘The Reuter News pictures service guide’, December 1984, Reuters Archive (RA), London.

36. See a memo sent to the general manager from Hans Ouwerkerk under ‘News pictures—Marketing Plan’, 28 March 1985, Reuters Archive (RA), London, p. 3–4.

37. See a memo sent to the general manager from Hans Ouwerkerk under ‘News pictures—Marketing Plan’, 28 March 1985, Reuters Archive (RA), London, P. 8–9.

38. See a memo sent to the general manager from Hans Ouwerkerk under ‘News pictures—Marketing Plan’, 28 March 1985, Reuters Archive (RA), London, P. 8–9.

39. See ‘RE News Pictures monthly report’ under editorial, 29 March 1985, Reuters Archive (RA), London, p. 3.

40. See ‘RE News Pictures Monthly Report’, 28 June 1985, Reuters Archive (RA), London, p. 2.

41. See ‘News picture service- August report’, 28 August 1985, Reuters archive (RA), London, p. 1.

42. See ‘RE News Pictures monthly report’, 6 January 1986, Reuters Archive (RA), London, p. 2.

43. See ‘RE Pictures Meeting- 3 July 1985’ under ‘Minutes of RE Pictures meeting on Wednesday, 3 July’, 3 July 1985, Reuters Archive (RA), London, p. 2.

44. See ‘Monthly Report’, 7 August 1985, Reuters Archive (RA), London, p. 4. See also ‘RE News pictures September’, 19 September 1985, Reuters Archive (RA), London, p. 1.

45. See ‘Minutes of RE Pictures meeting on Wednesday, 3 July’, 11 July 1985, Reuters Archive (RA), London, p. 8.

46. This was usually transmitted daily from New York at 18:00–20:00 GMT.

47. See a memo sent by Hans Ouwerkerk to the general manager, 30 January 1985 in Reuters ‘Complaints’ file and service message attached regarding the two incidents, Reuters archive (RA), London.

48. See a letter addressed to Charley McCarthy from ‘News Limited of Australia’, 11 March 1985, Complaint file, Reuters Archive (RA), London.

49. See ‘RE Strategy meeting—News pictures and other media’, 29 April 1985, Reuters Archive (RA), London, p. 1.

50. Smith cited in ‘RE Strategy meeting- News pictures and other media’, 29 April 1985, Reuters Archive (RA), London, p. 2.

51. See ‘News picture report’, 13 February 1986, Reuters Archive (RA), London, p. 4.

52. See ‘RUS News pictures Report’, 5 March 1986, Reuters Archive (RA), London, p. 2.

53. See ‘RUS News pictures Report’, 5 March 1986, Reuters Archive (RA), London, p. 2. See also ‘Monthly Report’, 28 February 1986, Reuters Archive (RA), London, p. 2.

54. See ‘News pictures report June 1986’, 10 June 1986, Reuters Archive (RA), London, p. 1.

55. See ‘Survey of the international colour news pictures market’, April 1986, Reuters Archive (RA), London, pp. 1–4.

56. See ‘Survey of the international colour news pictures market’, April 1986, Reuters archive (RA), London, pp. 35–6.

57. See ‘Survey of the international colour news pictures market’, April 1986, Reuters archive (RA), London, p. 37, 42.

58. See Reuters’ press release under ‘Reuters launches news pictures terminal’, 11 May 1987, Reuters Archive (RA), London, p. 1.

59. See Reuters’ press release under ‘Reuters launches news pictures terminal’, 11 May 1987, Reuters Archive (RA), London, p. 2.

60. See Reuters press release under ‘Reuters news pictures terminal—questions and answers’, 11 May 1987, Reuters Archive (RA), London, pp. 1–2.

61. Wood cited in ‘Pictures desk moves to London from Brussels’ in ‘Reuters world’, September 1988, No. 56, Reuters Archive (RA), London.

62. See a memo sent from Hans Ouwerkerk to Charlie McCarthy, 28 January 1988, Reuters Archive (RA), London, p. 1.

63. See ‘Pictures desk moves to London from Brussels’ in ‘Reuters world’, September 1988, No. 56, Reuters Archive (RA), London.

64. See Reuters’ brochures ‘Desktop picture power: The Reuters news picture terminal’ and ‘Excellence in pictures: The Reuter news pictures service’ published by Reuters in 1987, Reuters Archive (RA), London.

65. See ‘Media Products Business plan—1991–93’, 6 July 1990, Reuters Archive (RA), London, pp. 1–2.

66. See ‘Media Products Business plan—1991–93’, 6 July 1990, Reuters Archive (RA), London, pp. 2–3.

67. See ‘Media Products Business plan—1991–93’, 6 July 1990, Reuters Archive (RA), London, p. 3.

68. See ‘Media Products Business plan—1991–93’, 6 July 1990, Reuters Archive (RA), London, p. 10.

69. See ‘Media Products Business plan—1991–93’, 6 July 1990, Reuters Archive (RA), London, p. 11.

70. See ‘Media Products Business plan—1991–93’, 6 July 1990, Reuters Archive (RA), London, pp. 11–12.

71. See ‘Media Products Business plan—1991–93’, 6 July 1990, Reuters Archive (RA), London, pp. 12–13.

72. See ‘Media Products Editorial plan—1991–93 pictures’, 13 July 1990, Reuters Archive (RA), London, p. 5.

73. See ‘Media Products Business plan—1991–93’, 6 July 1990, Reuters Archive (RA), London, pp. 12–13.

74. See ‘Media Products Editorial plan—1991–93 pictures’, 13 July 1990, Reuters Archive (RA), London, pp. 5–6.

75. See ‘Media Products Editorial plan—1991–93 pictures’, 13 July 1990, Reuters Archive (RA), London, p. 6.

76. See ‘Multimedia-Database’ sent by Hans Ouwerkerk, 4 August 1992, Reuters Archive (RA), London, pp. 1–4; ‘Multimedia database’ under ‘Note for the record’, 12 October 1992, Reuters Archive (RA), London, pp. 2–6.

77. See ‘Multimedia database’ under ‘Note for the record’, 12 October 1992, Reuters Archive (RA), London, pp. 9–10.

78. Photoshop and its ‘dangerous’ editing options were already known to Pictures’ managers in early 1990s, (see ‘Regional desks-Interim solution’, 8 December 1993, Reuters Archive (RA), London).

79. See ‘Still pictures databases’, memorandum sent to Hans Ouwerkerk, 8 January 1993, Reuters Archive (RA), London.

80. However, Dow Jones and AP were both considered strong competition in that respect (see ‘Database business’, 2 November 1993, Reuters archive (RA), London, P. 2–4). Knight Ridder was considered to be the second largest newspaper publisher in the USA until it was purchased by the American McClatchy Company in 2006 (see www.mcclatchy.com).

81. See ‘Multimedia-Database’ sent by Hans Ouwerkerk, 4 August 1992, Reuters Archive (RA), London, p. 2.

82. See ‘Database business’, 2 November 1993, Reuters Archive (RA), London, p. 3.

83. See ‘Multimedia database’ under ‘Note for the record’, 12 October 1992, Reuters Archive (RA), London, p. 8.

84. See ‘Minutes of news pictures meeting held 28 June 1994, Las Vegas’, 11 July 1994, Reuters archive (RA), London, p. 1.

85. See ‘Reuters New Pictures Available through Archive Photos’ in a Reuters news release, 7 November 1995, Reuters Archive (RA), London, pp. 1–2.

86. See ‘A tumultuous decade: Ten years of change in Reuters news pictures’. In ‘Reuters World’, Issue No. 104, June 1995, Reuters Archive (RA), London, pp. 20–4.

87. See ‘A tumultuous decade: Ten years of change in Reuters news pictures’. In ‘Reuters World’, Issue No. 104, June 1995, Reuters Archive (RA), London, pp. 20–4.

88. See Freedom Forum journalists memorial. Newseum. Web. 28 March 2012; Daryl Lang, ‘Reuters photojournalist and his driver killed in Baghdad’. PDN online. 12 July 2007. Web. 28 March 2012.

89. See ‘UK Picture Editors’ Guild Awards’, 8 February 1995, Reuters Archive (RA), London. See the story of Adnan Hajj as it was first published in Charles Johnson ‘Reuters doctoring photos from Beirut?’. Little Green footballs. 5 August 2006. Web. 28 March 2012 [Blog].

90. See ‘Total number of picture images in 2007 – Monthly’ in ‘Media products- News research group 2008’ (RA).

91. See Chaim Handworker. ‘If people pay for a ring tone, why would they not pay to read 2,000 words?’ Haaretz. General. 21 October 2009. Web. 28 March 2012 [Hebrew].