The portal wars intensified Monday when Zillow announced that it was pulling Matterport 3D tours from its Zillow and StreetEasy sites.
Inman first learned of the move after obtaining an email StreetEasy sent to its partners Monday morning. The email stated that CoStar decided not to renew its Matterport application programming interface (API) agreement with Zillow.
“Due to this decision, StreetEasy and Zillow have removed Matterport 3D virtual tours from listings on our sites,” the email read. “You are receiving this email because you have one or more listings that were impacted.”
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“We understand how frustrating this is for you and the home shoppers you’re trying to reach — it is for us as well,” the email continued. “We also know how important virtual tour content is to your marketing strategy, and want to do everything we can to help you replace these removed tours.”
The portal said its removed all Matterport 3D virtual tours from the site and reminded users about other third-party virtual tour integrations, including Zillow 3D Home, Peek, Skyward 360 Tours, EyeSpy360, the 3D App and Giraffe360. The company also said it would provide updates in the coming days on how agents can capture and upload new 3D virtual tours to their listings.
In an emailed statement to Inman, a Zillow spokesperson lambasted CoStar’s decision not to renew the Matterport API agreement, and to update media licensing terms to “restrict the use” of CoStar Group media. CoStar owns Homes.com, Apartments.com and 14 other sites.
CoStar acquired Matterport earlier this year.
According to the media licensing terms — updated on Sept. 29 — CoStar Group customers retain all existing ownership rights to media they submit to CoStar through the company’s products and services. However, when it comes to CoStar Group media, which includes Matterport 3D virtual tours, customers are bound to a “limited, revocable, non-transferable, non-sublicensable license” that restricts their ability to use that media to market their listings or businesses.
CoStar customers are allowed to use CoStar media, excluding videos and virtual tours, on their own website, social media accounts, and printed materials. However, they cannot use or display CoStar media of any kind “on any third party platforms, websites, or listing services” that compete with CoStar, such as StreetEasy and Zillow.
“CoStar’s ongoing efforts to wall off data and restrict how real estate professionals use the content they pay for is harmful to everyone in the industry,” the Zillow spokesperson said. “Zillow empowers professionals to use a number of 3D media solutions on our platform in addition to our own rich media tool, Zillow 3D Home, which can be used both on and beyond our platforms.”
Inman reached out to CoStar about the Matterport API agreement and the media licensing terms update, and a company spokesperson accused Zillow of “intentionally misrepresenting” the portal’s licensing terms.
“… Neither Matterport’s nor CoStar Group’s media licensing terms have changed. While media created by CoStar Group explicitly for use on our platforms is proprietary, Matterport customers can share their Spaces anywhere, including on Zillow,” the spokesperson said in an emailed statement. “Zillow’s reference to the API agreement is a complete red herring, and unrelated to Matterport’s customers’ ability to share Spaces.”
“Further, Zillow has not been utilizing this feed for years, and they know this,” they added. “If Zillow is removing Matterport Spaces from its website, that is a decision Zillow made unilaterally to the detriment of their customers.”
The spokesperson also referenced CoStar’s copyright infringement suit against Zillow for displaying more than 46,000 CoStar-watermarked listing photos on Zillow Rentals. The decision to remove Matterport 3D virtual tours, they said, is an attempt to “stir up customer confusion” and “divert attention” from the legal battle.
“CoStar Group sued Zillow because it was infringing on CoStar Group’s copyrighted photographs, on a massive scale,” the spokesperson said. “Having been caught red-handed, Zillow is now playing games to stir up customer confusion and divert attention away from its many lawsuits. In addition to diverting leads and banning listings, this is yet another example of how Zillow is harming agents and consumers.”
CoStar reiterated these points in an email to Matterport customers late Monday night and advised them to direct questions or complaints to Zillow.
“We regret that Zillow’s actions have caused you any inconvenience, and we look forward to continuing to work with you,” the email read.
Monday’s announcement is the latest twist in a long-standing rivalry between Zillow and CoStar, as the latter’s founder and CEO Andy Florance aims to knock Zillow from the portal throne with Homes.com.
Florance has often criticized Zillow’s business model, which he said relies on “blackmailing” agents and “hijacking” listings. Florance upped the ante in July when he accused Zillow of “systematic [copyright] infringement,” which led the portal to begin removing the contested images in September.
Zillow has rebuffed CoStar’s through multiple court filings where it explained that Zillow customers “[grant] Zillow a license to the photos and warrant that they have all rights to do so.” The portal said it would defend itself against CoStar’s copyright claims and characterized the lawsuit an attempt “to weaponize copyright litigation for competitive pressure.”
It was not immediately clear Monday how many Matterport tours had previously appeared on Zillow, and the portal declined to say how many tours it removed. However, 3D tours generally have become a major marketing tool for some agents in recent years, with Matterport being among the best-known providers of such tours.
