Artnet to cut into the auction houses' business?

Thomas Eller and Hans Neuendorf, video still from VernissageTV

I just watched a video interview of Artnet founder and CEO Hans Neuendorf and Thomas Eller, the Editor-in-Chief of Artnet Magazine, on VernissageTV. The biggest story I found in the interview was the discussion of Artnet planning to launch an online art auction platform, a kind of eBay for the art world. The reason this would be a big deal for the auction houses, should they pull it off, is that they are talking about commissions in the 5-10% range. Neuendorf suggested that artists might use it, not just collectors and dealers.

Other highlights:

• Hans Neuendorf is very interested in the idea of market transparency, so that artists, dealers, and collectors have a better idea of how certain artists and works are really being priced.
• The importance of online platforms for art, since there are a large number of artists without access to the market. In an age with very high real estate prices, galleries can't afford to rent more space to show more artists and works even if they wish to.
• Liquidity is a problem for the art market - galleries with big inventories have significantly more financial risk than auction houses.
• At least 40,000 artists graduating from art schools in USA each year.

I also like this point (paraphrasing): "There are easier ways to make money than being an art dealer, despite all the talk of money -- they're idealists."