Yesterday, Zillow announced they were pulling Matterport 3D home tours from both Zillow and StreetEasy listings. And a finger was pointed in CoStar’s direction, suggesting their decision not to renew an API agreement forced Zillow’s hand.
In the wake of Zillow’s announcement, CoStar leadership sent out a letter to Matterport customers to make one thing clear: Matterport users can still “share their Spaces anywhere.”
For agents, the back-and-forth between two of real estate’s biggest portals could impact how 3D tours appear on listings across multiple platforms.
We’ve got CoStar’s letter below, which Byron Lazine and Nicole White broke down in today’s episode of The Real Word.
CoStar’s Response
It didn’t take long for CoStar to get its message out on the heels of Zillow’s press release. And to its credit, it didn’t waste time reassuring Matterport customers.
CoStar’s letter clarified that only the 3D media created for its own platforms is proprietary. Any Matterport Spaces created by agents remain their property and can still be shared anywhere, including Zillow.
As to Zillow’s decision to pull Matterport tours from its platform, it’s unclear now whether they meant videos created by CoStar Group or videos created by real estate agents for their clients.
And what about Matterport tours created by agents whose clients’ listings are being boosted on Homes.com?
As Byron pointed out, the uncertainty around which Matterport tours are safe to post on Zillow and which aren’t could be the reason why Zillow decided to just remove Matterport altogether.
So, are they throwing the baby out with the bath water, or is there more to this story yet?
CoStar sent the following letter to customers:
Dear Valued Customer,
We are writing to correct the intentional misrepresentations that you may have heard Zillow spreading regarding Matterport Spaces. Most importantly, as a Matterport customer, you can continue to share your Matterport Spaces anywhere, including Zillow.
Neither Matterport’s nor CoStar Group’s media licensing terms have changed. If Zillow is removing Matterport Spaces from its website, that is a decision Zillow made unilaterally to the detriment of their customers. We recommend reaching out to Zillow directly.
While media created by CoStar Group explicitly for use on our platforms is proprietary, Matterport customers can share their Spaces anywhere.
We understand that Zillow has made reference to a terminated API agreement between Matterport and Zillow. That is a complete red herring, and unrelated to Matterport’s customers’ ability to share Spaces. Zillow knows this but chose to spread a falsehood anyway.
The truth is that Zillow is desperately trying to divert attention from the slew of lawsuits it is now facing, brought by a brokerage, consumers, the FTC, State Attorneys General, and CoStar Group. Zillow is now playing games to stir up customer confusion and distract from its mounting legal troubles. In addition to diverting leads and banning listings, this is yet another example of Zillow harming agents and consumers.
We regret that Zillow’s actions have caused you any inconvenience, and we look forward to continuing to work with you.
This public clash between two real estate giants adds another layer to an already competitive landscape. Time will tell whether Zillow will respond again, or clarify what content it’s removing.
In any case, the ball is now back in their court. Stay tuned for updates.
