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(Weymouth, MA) March, 21 2000... As the world goes digital, a revolution is occurring in the photofinishing industry. A new study from InfoTrendsResearch Group reveals that in 2000, 13.9 billion amateur digital images will be created through digital cameras, scanners, and film digitization services in the U.S. alone. This will result in 5.4 billion photographic prints from digital files. Worldwide online photofinishing revenues are projected to grow at a compound annual rate of 92%, reaching $4.4 billion in 2005. Consumers wishing to print digital images have several options available to them, including home printers, online photofinishers, and retail solutions. "While home printers are the primary means of obtaining prints from digital images today, online photofinishers are expected to grow quickly," says Lia Schubert, research analyst for InfoTrends Research Group. "Dissatisfaction with the speed and cost of home printing, increased Internet penetration, acceptance of online shopping, new and compelling forms of photographic output, and promotions will drive U.S. consumers to order over 8.5 billion prints online in 2005, representing over $2.5 billion in revenue." A host of players have entered the online photofinishing space in order to capitalize on this tremendous market opportunity. Dot.com photofinishers like Shutterfly and Ofoto are using their venture funding to drive aggressive promotions and marketing campaigns in order to gain consumer mind share. Traditional photofinishers such as Kodak do not intend to be left behind as the paradigm shift occurs; rather they are leveraging their established brands against industry newcomers. Meanwhile, photofinishing equipment manufacturers and other back-end technology providers are empowering retailers with online solutions. Although the market is expanding to accommodate many new players, the large number of entrants means that competition will be fierce. Key success factors for online photofinishers include print quality, turn-around time, scalability, overall user experience, and strategic partnerships. InfoTrends' new forecast report, titled "Photofinishing in the Digital Age," identifies the drivers and barriers to online photofinishing, summarizes key issues and trends, and provides profiles of major players. It projects the total number of U.S. amateur digital images and prints from digital files through 2005, broken down by source and method of printing. Online photofinishers' revenue in the U.S., Europe, Japan, and worldwide is forecast through 2005. The report is available immediately in both hard copy and electronic format. |
