Photographs, illustrations, graphic designs, and other visual works constitute artistic-related intangible assets under IFRS 3. While individual photographs rarely command significant value in isolation, portfolios of visual content — stock image libraries, news photo archives, brand photography collections, and commissioned visual assets — can represent substantial intangible asset value in a business combination.
The commercial exploitation of visual works has been transformed by digital distribution. What was once a physical archive of prints and negatives is now a digital library generating licensing revenue through global platforms, subscription services, and AI training datasets.
| Category | Examples | Value Drivers |
|---|---|---|
| Stock image libraries | Getty Images, Shutterstock collections | Volume, searchability, exclusivity, subscription revenue |
| News and editorial archives | Press agency photo collections | Historical significance, ongoing editorial licensing |
| Brand photography | Product images, lifestyle photography | Quality, brand consistency, usage rights |
| Fine art photography | Gallery-represented photographer collections | Artistic reputation, scarcity, print edition sales |
| Scientific and technical imagery | Medical imaging, satellite photography | Specificity, regulatory compliance, research value |
For commercial image libraries, the income approach based on licensing revenue is most appropriate. The key inputs are:
The value of a visual works portfolio is driven by its licensing economics — the aggregate revenue generated by the collection, not the artistic merit of individual images. In stock photography, volume, searchability, and metadata quality matter more than individual image excellence.
For business-specific photography (product images, executive portraits, marketing photography), the cost approach estimates the replacement cost — what it would cost to recreate an equivalent visual library through new commissions. This includes:
A consumer goods company is acquired with a product photography library of 15,000 images covering 3,000 SKUs. The cost to recreate this library — commissioning a product photographer, styling each item, editing and retouching — is estimated at £45 per image, giving a replacement cost of approximately £675,000. This cost approach value provides a floor; if the images generate measurable licensing or marketing value beyond their replacement cost, an income-based uplift is warranted.
The intersection of photography and artificial intelligence creates both threats and opportunities for visual work valuations:
AI-generated imagery: Tools like Midjourney, DALL-E, and Stable Diffusion can generate images that compete with stock photography for many commercial applications. This has put significant downward pressure on stock image prices and volumes, threatening the revenue base of traditional image libraries.
AI training data value: Conversely, large collections of high-quality, rights-cleared photographs are valuable as training data for AI image generation models. Getty Images, for instance, has negotiated training data licences with AI companies — creating a new revenue stream that partially offsets the competitive threat.
Rights management complexity: AI-generated images raise unresolved questions about copyright ownership and originality. In a PPA, the distinction between human-created and AI-generated visual content affects copyright eligibility and therefore intangible asset recognition.
Visual work valuations must account for the AI disruption. A stock image library valued at historical licensing multiples without adjusting for AI-driven competition will overstate its fair value. Conversely, ignoring AI training data licensing opportunities may understate the value of large, rights-cleared collections.
The useful life of visual works depends on the content type:
Amortisation should reflect the revenue pattern — most commercial image libraries show a steep initial decline in per-image revenue followed by a long, low tail of residual licensing income.
In modern image libraries, the metadata is often as valuable as the images themselves. Detailed keywords, captions, model releases, location data, and usage rights documentation make images discoverable and licensable. A library with excellent metadata generates more licensing revenue per image than one with poor cataloguing — making the metadata investment a value-multiplying intangible within the intangible.
Photographs and visual works are one of five artistic-related intangible assets under IFRS 3. For the full classification, see 35 types of intangible assets. To understand the valuation methods in detail, read intangible asset valuation methods explained.
Tony Hillier is an Advisor at Opagio with over 30 years of experience in structured finance, M&A advisory, and intangible asset valuation. Meet the team.
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