Just two days before Photoshelter completely shutters its stock collection, the following email went out to Digital Railroad’s users, the text of which also appears on the company’s blog (scroll to the bottom).
October 15, 2008
To Valued Members, Customers and Partners,
For the past few weeks, Digital Railroad (DRR) has been seeking additional funding required to sustain its current level of operations. To date, those efforts have been unsuccessful. As a result, effective October 15, 2008, the company has initiated a reduction in staff and expenses while it continues the funding effort. Nevertheless, Digital Railroad is committed to the continued support of its customers through this period and has retained adequate staff to support both member archives and image licensing sales through Marketplace.
We will have further information shortly and expect to provide an update to you next week. In the meantime, we are grateful for the loyalty and support that you have demonstrated and thank you for your patience during this transition.
Should you need additional information, please contact us at email@example.com.
The Team at DRR”
Rumors abound about what’s going on. John Harrington thinks the whole thing is up for liquidation and that investors will be lucky to see just $5 million of the $15 million put into the company last December. PDNPulse is covering the scene, as well. Lightstalkers has open threads (and don’t miss previous threads about the DRR Marketplace users’ experience).
I’m quite curious to see what this means for the agencies and photographers who use Digital Railroad as their primary archive and means of distribution. VII, Noor, Redux, Grazia Neri, Invision….the list goes on and on. Will there be a mass migration to Photoshelter’s still operating Archive?
update: NPPA has an article up, too. Not sure if it adds anything.