As the update by Alamy CEO James West says in a blog update, times are tough at Alamy, with a prediction that sales will be 15-20% down this year compared to last. James rightly points out that a significant factor has been the 'recession' and its impact on image buyers (e.g. UK newspaper industry). The other factor which I would have assumed was just as relevant is the evolving marketplace and availability of more competitive offerings from the microstock companies (iStockphoto, Dreamstime, Fotolia, Shutterstock, etc.). As well as probably being cheaper, arguably some of these companies have tigher image quality control in-place at time of submission, which could lead to a more efficient buying experience.
For the record, I'm yet to make any sales from my small Rights-Managed portfolio on Alamy, but finger's crossed one day I will!
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