Roland Sledge, a 65-year-old lawyer for an oil and gas company in Houston, is no art world habitué. He began collecting prints and works on paper a little more than a decade ago, focusing on Abstract Expressionism, and has done some business with small New York galleries, “though I mostly just stumbled into things that I liked,” he said in a broad Texas accent.
“I don’t have a lot of connections,” he added.
But Mr. Sledge, and a growing number of collectors like him, have lately been demonstrating that connections may not be as important as they once were — and that online sales, a segment of the art business given up for dead not long ago, are becoming an increasingly important part of its future.
Over the last year and half, Mr. Sledge has collected almost exclusively online, buying nine pieces at an average of about $4,000 each at online-only auctions through Artnet, the art market information company. Artnet tried and failed to become one of the pioneers of online sales in 1999, suspending those auctions two years later after it lost millions of dollars and decided that the market wasn’t ready. But it got back into the business in 2008, and after less than three years, the auctions now account for 14 percent of the company’s income.
The glamorous, newsmaking sales of Sotheby’s and Christie’s these are not. The average price of an artwork won through an Artnet auction is about $6,800 now, up from $5,600 last year, which wouldn’t come close to paying the commission on most high-end auction sales. But Artnet is one of many companies that believe the time might finally be right for a sizable portion of the art market to begin migrating online, the way sales for specialized items like rare books and antiques already have.
The VIP Art Fair, a weeklong online event that mimicked the mechanics of a traditional art fair with virtual booths, attracted a large international group of blue-chip galleries last January and, despite some well-publicized technical glitches, was seen as a success by dealers and collectors. Art.sy, a venture that will use Pandora-like technology to help art buyers find pieces and the galleries selling them, has already lined up heavyweight supporters like the dealer Larry Gagosian and Jack Dorsey, a founder of Twitter. And most major auction houses also now allow online bidding for sales happening in the physical world.
But while online bidding and fairs and services like Art.sy essentially serve as a digital bridge to bricks-and-mortar galleries and auction houses, Artnet officials say that much of the art market below a certain price level will soon operate almost entirely in the virtual realm. Auctions on Artnet take place around the clock, eBay-style (though the lots close only on weekdays, so far), and the company vets sellers and relies on their photographs and descriptions of the provenance and quality of artworks.
