Omnicom Delaying Payments to Photographers, Too
Here’s something that BNET missed: Remember that new Omnicom policy of delaying payments to TV commercial producers until the client has paid the agency? Turns out it also applies to photographers.
Although photographers charge less money than TV producers, they are used more often because virtually all ads require some photography but only moving images require producers.
Omnicom is enforcing the new policy in order to improve its working capital — the money it holds as cashflow — which produces interest income and generally makes life easier to do business in crunch times such as now.
Under new standard language being introduced in Omnicom contracts, ad agencies will no longer assume liability for a project if a client doesn’t pay. This could force a photographer to eat the cost of an ad shoot if a troubled advertiser fails to pay an ad agency.
The American Society of Media Photographers is advising … rebellion!
These terms and conditions are simply not in the best interests of photographers, producers or clients … This action, clearly taken in anticipation of increasingly difficult financial conditions is a unilateral effort to shift the burden onto those who are least prepared to bear it.
ASMP would recommend that photographers include in their paperwork a statement making it clear that there will be no grant of copyright license until all related assignment invoices are paid in full.
The rabble-rousers continued:
The issue needs to become viral and requires significant support from key photographers in order to gain traction and effect change.
Omnicom is the only network out there that has demanded so-called sequential liability on payments, PDN notes:
Representatives at Interpublic Group of Companies, WPP Group and Publicis Groupe said their companies have not yet demanded sequential liability clauses in commercial production contracts.
- See BNET’s previous coverage of Omnicom’s finances:
- Omnicom, in Cash Crunch, to Delay Payments to U.S. TV Producers
- Omnicom Sought to Delay TV Production Payments; a Sign of Cash Crisis?
- Clients Are Delaying Payments to Agencies
- Omnicom, Publicis Worst Hit in Auto Brand Axings
- Omnicom’s Credit Crunch: a Gamble by CEO Wren That Didn’t Pay Off
Jim Edwards, a former managing editor of Adweek, has covered drug marketing at Brandweek for four years, and is a former Knight-Bagehot fellow at Columbia University's business and journalism schools. Follow him on Twitter or send him an email.
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