Yes, it is indeed difficult to compete with free even with a better product. This isn't about competing with "innovation." It's about better distribution channels for the free stuff that has always existed.
To be clear, there's absolutely nothing wrong with putting photos up on the web and allowing for their free reuse. But, yes, it is the collective use of free/cheap photographs that are good enough for their target purpose (and sometimes as good as anything a pro would have created) that are cutting into the professional photography business.
To be clear, there's absolutely nothing wrong with putting photos up on the web and allowing for their free reuse. But, yes, it is the collective use of free/cheap photographs that are good enough for their target purpose (and sometimes as good as anything a pro would have created) that are cutting into the professional photography business.