Agile Computing Authors: Liz McMillan, Elizabeth White, John Mertic, Pat Romanski, Carmen Gonzalez

News Feed Item

Artprice Clarification Regarding the Article Published by Artemundi Global Fund on the Demise of Auction Houses

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


"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."

About Artprice:

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]

SOURCE Artprice.com

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
In the next forty months – just over three years – businesses will undergo extraordinary changes. The exponential growth of digitization and machine learning will see a step function change in how businesses create value, satisfy customers, and outperform their competition. In the next forty months companies will take the actions that will see them get to the next level of the game called Capitalism. Or they won’t – game over. The winners of today and tomorrow think differently, follow different...
One of biggest questions about Big Data is “How do we harness all that information for business use quickly and effectively?” Geographic Information Systems (GIS) or spatial technology is about more than making maps, but adding critical context and meaning to data of all types, coming from all different channels – even sensors. In his session at @ThingsExpo, William (Bill) Meehan, director of utility solutions for Esri, will take a closer look at the current state of spatial technology and ar...
The Open Connectivity Foundation (OCF), sponsor of the IoTivity open source project, and AllSeen Alliance, which provides the AllJoyn® open source IoT framework, today announced that the two organizations’ boards have approved a merger under the OCF name and bylaws. This merger will advance interoperability between connected devices from both groups, enabling the full operating potential of IoT and representing a significant step towards a connected ecosystem.
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
SYS-CON Events announced today that Streamlyzer will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Streamlyzer is a powerful analytics for video streaming service that enables video streaming providers to monitor and analyze QoE (Quality-of-Experience) from end-user devices in real time.
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this ...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 7-9, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
Cloud based infrastructure deployment is becoming more and more appealing to customers, from Fortune 500 companies to SMEs due to its pay-as-you-go model. Enterprise storage vendors are able to reach out to these customers by integrating in cloud based deployments; this needs adaptability and interoperability of the products confirming to cloud standards such as OpenStack, CloudStack, or Azure. As compared to off the shelf commodity storage, enterprise storages by its reliability, high-availabil...
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 @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
The IoT industry is now at a crossroads, between the fast-paced innovation of technologies and the pending mass adoption by global enterprises. The complexity of combining rapidly evolving technologies and the need to establish practices for market acceleration pose a strong challenge to global enterprises as well as IoT vendors. In his session at @ThingsExpo, Clark Smith, senior product manager for Numerex, will discuss how Numerex, as an experienced, established IoT provider, has embraced a ...
November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Penta Security is a leading vendor for data security solutions, including its encryption solution, D’Amo. By using FPE technology, D’Amo allows for the implementation of encryption technology to sensitive data fields without modification to schema in the database environment. With businesses having their data become increasingly more complicated in their mission-critical applications (such as ERP, CRM, HRM), continued ...
SYS-CON Events announced today that Cloudbric, a leading website security provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Cloudbric is an elite full service website protection solution specifically designed for IT novices, entrepreneurs, and small and medium businesses. First launched in 2015, Cloudbric is based on the enterprise level Web Application Firewall by Penta Security Sys...
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will w...
When people aren’t talking about VMs and containers, they’re talking about serverless architecture. Serverless is about no maintenance. It means you are not worried about low-level infrastructural and operational details. An event-driven serverless platform is a great use case for IoT. In his session at @ThingsExpo, Animesh Singh, an STSM and Lead for IBM Cloud Platform and Infrastructure, will detail how to build a distributed serverless, polyglot, microservices framework using open source tec...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
A completely new computing platform is on the horizon. They’re called Microservers by some, ARM Servers by others, and sometimes even ARM-based Servers. No matter what you call them, Microservers will have a huge impact on the data center and on server computing in general. Although few people are familiar with Microservers today, their impact will be felt very soon. This is a new category of computing platform that is available today and is predicted to have triple-digit growth rates for some ...
SYS-CON Events announced today that Roundee / LinearHub will exhibit at the WebRTC Summit at @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LinearHub provides Roundee Service, a smart platform for enterprise video conferencing with enhanced features such as automatic recording and transcription service. Slack users can integrate Roundee to their team via Slack’s App Directory, and '/roundee' command lets your video conference ...
SYS-CON Events announced today that Enzu will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their online busine...
SYS-CON Events announced today that SoftNet Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and...