Wednesday, August 7, 2013

Yes But Is It Art? Amazon Jumps Into the Fine Art Biz (AMZN)

From Marginal Revolution:

Is Amazon Art a doomed venture? Let’s hope so
I do not think it will revolutionize the art world:
Amazon has just announced that it’s partnered up with over 150 galleries and art dealers across the US to sell you fine art through its new initiative The site offers over 40,000 original works of fine art, showcasing 4,500 artists. That, perhaps unsurprisingly, makes it the largest online collection of art directly available from galleries and dealers.

Partners in the project include Paddle8 in New York, the McLoughlin Gallery in San Francisco, and the Catherine Person Gallery in Seattle. Last month, the Wall Street Journal reported that Amazon—which will reportedly take a 5 to 20 percent cut on all sales—was planning to launch the new service. At the time, it seemed that plenty of galleries thought that selling art online via Amazon may be distasteful. Clearly, that negative feeling hasn’t stopped Bezos & Co.

Given Amazon’s last attempt at selling art—a project with Sotheby’s back in 2000 — only lasted 16 months, it’ll be interesting to see how the initiative works out.
I expect the real business here to come in posters, lower quality lithographs, and screen prints, not fine art per se.  And sold on a commodity basis.  There is nothing wrong with that, but I don’t think it will amount to much more aesthetic importance than say Amazon selling tennis balls or lawnmowers.

Should you buy this mediocre Mary Cassatt lithograph for “Price: $185,000.00 + $4.49 shipping”?  (Jeff, is WaPo charging you $250 million plus $4.49 shipping?  I don’t think so. )

One enduring feature of the art world is that a given piece will sell for much more in one context rather than another.  The same painting that might sell for 5k from a lower tier dealer won’t command more than 2k on eBay, if that.  Yet it could sell for 10k, as a bargain item,  relatively speaking, if it ended up in the right NYC gallery (which it probably wouldn’t).  Where does Amazon stand in this hierarchy?  It doesn’t look promising....MORE
That last paragraph is a good insight into the "fine art" of galleries separating the buyer from their money.