|By PR Newswire||
|December 9, 2012 06:16 PM EST||
PARIS, December 9, 2012 /PRNewswire/ --
Thierry Ehrmann, founder and CEO of Artprice, wishes to clarify and remove any misunderstanding or confusion between his company and the Artemundi Global Fund (AGF) following the latter's publication of an article on the demise of auction houses, and particularly of Christie's and Sotheby "For whom the bell tolls: the death of Christie's and Sotheby's".
In the first place, Artprice's CEO wishes to state that it has no capital links, interests, contractual agreement or partnership with Artemundi Global Fund whatsoever and that there is absolutely no link between Artprice and the afore-mentioned publication which highlights some of the economic and social realities that are now inevitable for auction houses in the Internet era.
Five years ago, Artprice itself drew attention to the inevitable demise not of auction houses that have been its partners for 25 years as such, but of auction rooms, in the physical sense, as places where artworks have been sold for centuries via a process of competitive bidding. Artprice suggested that the general public, including professionals, amateurs and art collectors, is likely to gradually shift away from sales rooms, large or small, and migrate to the Internet which now has roughly 3 billion users worldwide.
The confusion between Artprice and the Artemundi Global Fund seems to stem from the fact that, firstly, Artprice's article of five years ago used similar semantics, and, secondly, the article by Artemundi Global Fund refers to statistics published by Artprice.
That Artemundi Global Fund makes perfectly legal use of Artprice data does not mean that Artprice supports or agrees with the contents of AGF's article, even if the latter is undoubtedly based on serious data with substantiated and interesting arguments. Remember that in the context of its historical activity and as world leader in art market information, Artprice provides statistical information every year to 6,300 printed and broadcast media as well as to a large number of research bodies.
Artprice's position is very clear: the Internet represents for the auction houses - which have always been its historical partners and clients - a significant cultural and economic shock, just as it has been for the printed press.
In this context, Artprice believes the auction houses are making the right decision by allying themselves with Artprice and particularly with its Standardised Marketplace (protected by intellectual property rights) in order to conduct a mutally beneficial cyber-metamorphosis, since the majority of them do not have the means to build adequate infrastructures and/or because they do not have the copyright and Sui Generis rights to reproduce Artprice's Standardised Marketplace.
In fact, the leaders of the top global auction houses are fully aware that the middle market is now on Internet. In an interview with the French economics daily "Les Echos" earlier this year, the CEO of Christie's unambiguously stated that "The future of the middle market, i.e. of works priced between €800 to €10,000, is on the Net". According to Artprice, this middle market represents 81% of global art market auction transactions.
Pursuing this logic, Artprice can only observe (now that it is also physically established in China), that for the large Chinese auction houses that have emerged since the 2000s in contrast to the centuries-old Anglo-Saxon auction houses, the concept of physical auction rooms does not really make much sense at a time when all the major players with substantial purchasing power on the global art market are effectively using the Internet and hence do not need to physically visit an auction house. Asia, which will soon represent around 70% of the global art market, is in effect showing the way forward for the 21st century.
Moreover, Artprice, via its partnerships, can already confirm that in 2012 China will totally belittle the American and European art market after already substantially exceeding it in 2011 (China 41.4%, U.S. 23.6%, UK 19.4%, France 4.5%).
For information purposes only, Artprice provides a link to Artemundi Global Fund's full text on the demise of auction houses in English. The page also includes links to French and Spanish versions of the same article (original written Spanish) http://www.artemundigroup.com/2012/10/for-whom-the-bell-tolls-the-death-of-chrisites-and-sothebys/) http://www.artemundigroup.com
Original Version in English "FOR WHOM THE BELL TOLLS: THE DEATH OF CHRISTIE'S AND SOTHEBY'S
"Progress finally has caught up with the major art auction houses. Consider this carefully. You are reading that Christie's and Sotheby's death sentence is about to be carried out. It is time for the art industry to either be ready for the future or be left behind? The concept of selling art at auction houses is an anachronism that has been held up by the traditions of art sales that have supported old forms and stodgy protocols for how to connect buyers and sellers.
The technology revolution is pretty much decimating every storied seller in every industry and the art auction houses are not immune to the revolution. It was inevitable. The auction house, a middleman that earns commissions that average 25 percent, has marked its own grave through its inefficiency. Just as fast the internet destroyed newspapers, the auction houses soon will be relegated to a footnote in the annals of history where the list of businesses that have died due to poor business judgment grows larger by the second.
For some, it is an incredible assertion that auction houses are dead when Sotheby's and Christie's have had recent record sales, but those who question these facts have not looked carefully at global auctions. While on its face, during the past five years gross auction market sales have been steady in terms of gross sales, closer scrutiny shows that the market has been buoyed by sales at the top 1 percent of the market which are not sustainable over time. To put this in perspective consider that in 2007 the global auction market reached its peak at $31.2 billion dollars while sales in 2011 were $29.9 billion dollars. The recent numbers, however, are misleading because of record prices such as Giacometti's L'Homme qui marche at $104 million dollars and Munch's The Scream at $119.9 million. It is probable that in a healthier economic environment these prices would have not been achieved. In the art jargon, the Giacometti and Munch pieces are called objects of passion, which are "trophies" purchased by the super rich. According to Art Price, 58 percent of the total auction market revenue in 2011 came from 1% of all lots, i.e., the over inflated trophy art sales. Record prices for these trophy pieces certainly do not reflect the general market. For example, according to Clare McAndrew, of the 36.8 million art transactions in 2011 only 1,680 lots were valued over $1 million dollars. The bottomline is that the amount of auction market sales are misleading.
The simple fact is that auction houses have onerous overhead, which they are afraid to shed. You cannot blame them, but they have marked their own graves. Theirs is a fate that they can neither avoid nor, as their actions show, wish to avoid. You do not need to be Nostradamus to predict the future the art world. It is happening as this article is being written. Art funds are growing in value and in number. What began as an investment experiment in the late 70s has now been accepted as an institutionalized investment vehicle. Moreover, art funds have the resources to attract highly valued art portfolios and to form synergies with all the players of the art market, while auction houses are stepping on everybody´s toes.
Internet sales are changing the infrastructure of the market; in the last couple of years they have had a slow but steady growth. On average 5% of the auction bidding and 10% of dealer sales are done online. Furthermore, internet has increased the amount of information available to the public creating a more transparent and competitive environment.
Ask the auction houses this question: Why do we need you? What are you doing for me? The answer is increasing irrelevant as the auction houses try to hold onto a position that already has been rendered irrelevant. This means the auction houses are blinded by self-preservation and cannot be trusted when asked to evaluate your artworks because they have such a high stake in the art that is being sold.
1994 work in Sears a guy in college tells you're going out of business … The next great seller of electronics will not have a store. Will not have been in bunnies as of the last 200 years and will have a corporation with 200 Ivy league graduates. Yet that is exactly what will happen.
So what is the future? The traditional brick and mortar auction houses are dead; it is not a matter of if, but just how soon. Auction houses are an anachronism born of an age before the internet and proficient computer users. In the past, an auction house was an important location to connect a buyer and a seller. It was a place where accurate and real market prices were set. A seller was willing to pay a premium because there were limited means to reach buyers. But those days are gone. The auction house is an expensive middle man that has become an unnecessary transaction cost. The future is an art exchange with lower overhead where commissions will almost be zero. It will look more like the New York Stock Exchange than Ebay or Amazon, but there is no doubt that the art market already has moved in this direction. Paintings will arrive in a centralized location, be catalogued and inspected by experts, and then sales will be conducted. Javier Lumbreras."
http://www.artprice.com (c)1987-2012 thierry Ehrmann
As of the close of markets on 21 December 2012, ARTPRICE will join the French SBF 120 stock market index. In the framework of its quarterly review of the Euronext Paris indices, the meeting of Scientific NYSE Euronext Committee for Indices on 6 December 2012 decided to admit Artprice.com as one of the companies listed on the CAC Mid 60 and the SBF 120 indices. http://www.artprice.com (c)1987-2012 thierry Ehrmann
Artprice is the global leader in databank on Artprices and indices with more than 27 million indices and auction results covering more than 500,000 artists. Artprice Images® offers unlimited access to the largest Art Market resource in the world, a library of 108 million images or engravings of artworks from 1700 to the present day along with comments by Artprice's art historians. Artprice permanently enriches its databanks with information from 4,500 international auction houses and auctioneers and publishes a constant flow of art market trends for the main news agencies and 6,300 international written media. For its 1.953 million members (member log in), Artprice posts standardized adverts in what is today the world's leading Standardised Marketplace® for buying and selling works of art by private contract or at auctions -regulated by French law alinéas 2 et 3 de l'article L 321.3 du code du commerce- (source Artprice).
Discover the Alchemy and the universe of Artprice http://web.artprice.com/video/, which headquarters are the famous Museum of Contemporary Art, the Abode of Chaos
Artprice is listed on Eurolist B by Euronext Paris (SRD long only): Euroclear: 7478 - Bloomberg: PRC - Reuters: ARTF
Artprice releases: http://serveur.serveur.com/press_release/pressreleaseen.htm
Follow all of the art market's news with Artprice on Twitter:
Contact: Josette Mey - tel: +33(0)478-220-000, e-mail: [email protected]
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from ha...
Nov. 22, 2014 10:00 PM EST Reads: 977
We are all here because we are sold on the transformative promise of The Cloud. But what good is all of this ephemeral, on-demand infrastructure if your usage doesn't actually improve the agility and speed of your business? How must Operations adapt in order to avoid stifling your Cloud initiative? In his session at DevOps Summit, Damon Edwards, co-founder and managing partner of the DTO Solutions, will highlight the successful organizational, process, and tooling patterns of high-performing c...
Nov. 22, 2014 08:45 PM EST Reads: 889
Software-driven innovation is becoming a primary approach to how businesses create and deliver new value to customers. A survey of 400 business and IT executives by the IBM Institute for Business Value showed businesses that are more effective at software delivery are also more profitable than their peers nearly 70 percent of the time (1). DevOps provides a way for businesses to remain competitive, applying lean and agile principles to software development to speed the delivery of software that ...
Nov. 22, 2014 08:00 PM EST Reads: 1,410
Docker offers a new, lightweight approach to application portability. Applications are shipped using a common container format and managed with a high-level API. Their processes run within isolated namespaces that abstract the operating environment independently of the distribution, versions, network setup, and other details of this environment. This "containerization" has often been nicknamed "the new virtualization." But containers are more than lightweight virtual machines. Beyond their small...
Nov. 22, 2014 06:45 PM EST Reads: 1,102
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
Nov. 22, 2014 05:45 PM EST Reads: 1,189
ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ -- IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and asse...
Nov. 22, 2014 05:30 PM EST Reads: 1,034
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com...
Nov. 22, 2014 07:00 AM EST Reads: 1,324
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Ar...
Nov. 21, 2014 09:15 PM EST Reads: 1,245
Leysin American School is an exclusive, private boarding school located in Leysin, Switzerland. Leysin selected an OpenStack-powered, private cloud as a service to manage multiple applications and provide development environments for students across the institution. Seeking to meet rigid data sovereignty and data integrity requirements while offering flexible, on-demand cloud resources to users, Leysin identified OpenStack as the clear choice to round out the school's cloud strategy. Additional...
Nov. 21, 2014 08:45 PM EST Reads: 1,211
Technology is enabling a new approach to collecting and using data. This approach, commonly referred to as the "Internet of Things" (IoT), enables businesses to use real-time data from all sorts of things including machines, devices and sensors to make better decisions, improve customer service, and lower the risk in the creation of new revenue opportunities. In his General Session at Internet of @ThingsExpo, Dave Wagstaff, Vice President and Chief Architect at BSQUARE Corporation, discuss the ...
Nov. 21, 2014 08:00 PM EST Reads: 1,325
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, a...
Nov. 21, 2014 08:00 PM EST Reads: 1,262
SYS-CON Media announced today that Aruna Ravichandran, VP of Marketing, Application Performance Management and DevOps at CA Technologies, has joined DevOps Journal’s authors. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. DevOps Journal brings valuable information to DevOps professionals who are transforming the way enterprise IT is done. Aruna's inaugural article "Four Essential Cultural Hacks for DevOps Newbies" discusses how to demonstrate the...
Nov. 21, 2014 07:00 PM EST Reads: 1,256
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Nov. 21, 2014 07:00 PM EST Reads: 1,201