Who subscribed to its service. How did this online stock photography service get derailed?
A high-profile beginning
Started in 2004, Digital Railroad touted itself as the “first online archive system that gives the power of a large photo agency to individual photographers.” The web site archived work and streamlined repetitive workflow tasks while at the same time making it easier for buyers to find their work. Dirck Halstead and David Hume Kennerly were among the tames invoked as early testers. The deal included a $195 setup fee and a $49.95 monthly subscription fee. The rollout included an all-star cast of well-known photographers, and for the next four years, Digital Railroad was a household name among stock photographers and buyers.
Turmoil in 2008
In January 2008, Digital Railroad restructured, reducing staff by 20 percent after getting $15 in new funding, but it soon spent that investment away. By fall, rumors abounded that Digital Railroad was in trouble, possibly in liquidation. Some larger clients pulled out.
In early October, rumors were confirmed as Diablo Management, a liquidation company, took over the running of Digital Railroad. The CEO, board and president resigned. On October 16, most employees were fired with only support staff left. Diablo reported that it was looking for a financial partner, but with the financial markets in a nosedive and investors holding onto their money until things stabilize, there was no way to put the company back on track.
As many as 1,900 client archives are on Digital Railroad’s servers. Calls to DRR’s phone numbers are reportedly not being answered, according to NPPA.
Final Goodbye
At the close of business yesterday, the following message was posted on Digital Railroad’s homepage, topped by a header simply saying “Final Goodbye”:
To our valued Members and Partners:
We deeply regret to inform you that Digital Railroad (DRR) has shut down.
On October 15th we reported that the company had reduced its staff and was aggressively pursuing additional financing and/or a strategic partner. Unfortunately, those efforts were unsuccessful. Therefore Digital Railroad has been forced to close all operations.
Digital Railroad has attracted a loyal set of customers and partners, and we regret this unfortunate outcome. Without sufficient long-term financial support, the business had become unsustainable.
Thank you for allowing us to serve the photographic community these past few years.
All questions pertaining to claims should be addressed to:
DRRinfo@diablomanagement.com
Digital Railroad, Inc
c/o Diablo Management Group
1452 N. Vasco Road, #301
Livermore, CA 94551
Here today, gone tomorrow?
While we were able to access individual member photographers’ pages as of 6:30 this morning, the Stock Artists’ Alliance, NPPA and other professional photographers’ organizations are urging DRR.net subscribers to back up their data–especially their account information–immediately.
PhotoShelter, a competitor to DRR, is offering three months’ credit for customers who migrate their accounts over, and will help them FTP their photos and data from DRR’s server, which reportedly has been going “at a snail’s pace” since DRR’s announcement.
It is not known if photographers will get their unfulfilled subscription fees returned, or if they will be paid money owed for sales of their photos through Digital Railroad. As we reported late yesterday, Betsy Reid, executive director of the Stock Artists Alliance, advises photographers to download all of their account information for records of any money owed, and to check their credit card records to make sure their cards aren’t charged for discontinued services by Digital Railroad.
