I see nothing but evidence that the public cares about photography (as art) more than ever. I see higher prices paid for photography at galleries and auctions, I see more photography-only galleries and more galleries that include photography among other mediums. I see more photography books published than ever, more photography grants, more photography programs in schools, more photography web sites. And more interest in participation.
This year I've also sold more work than I have before, and it's been to people with no formal art collecting background.
I have not seen evidence of the gutting of the mid-range (but I also wonder what era people making these claims are comparing with ... have they adjusted for inflation? $500 in 1988 equals $1000 today ...). If there is indeed a loss of the middle-market, this could be interpreted in different ways. An obvious one is that the price disparity between photography and other media is eroding. How often do you see a $500 painting at a commercial gallery in a big city?
Frames for my prints cost more today than my prints did back when I was in college. So I'm glad to see expectations for cost on the rise.
None of this has anything to do with the commercial photography world, which indeed seems to have been gutted. Part of that is everyone having a camera, part of it is the move to stock imagery, and part is just the internet culture of not valuing "content."
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