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Visual Communications Technologies Service Launches, Large Format Market Focus Expands to Electronic Displays

(Weymouth, MA) September 13, 2000…In an economy that is still very much driven by growth in retail and advertising revenues, there is now emerging a new means to deliver graphics and advertising content: large-scale electronic displays.

This large-scale electronic display sector is developing at such a sustained pace that CAP Ventures is adding market research and consulting in this new sector to its newly re-named Visual Communications Technologies Consulting Service (VCT). VCT was first launched at CAP Ventures in 1996 as the Large Format Printing Consulting Service. Annual research service modules now will be offered for two areas: large format digital printing (LFDP) and large format electronic displays (LFED.)

Large format digital graphics now are printed on hardware supplied to the market by vendors such as Hewlett-Packard, Epson, Canon and Roland DG. Alternatively, the same kind of graphics and advertising messages that now are printed on large format posters and banners can be delivered electronically -- via video or photographic input -- through a variety of technologies including LED, liquid plasma displays, interactive touch screens and "electronic paper."

"The huge leap in the quality of LED and liquid crystal technologies has made these large-scale electronic displays absolutely vibrant, clear to view and, of major significance – instantly changeable – in their messaging capabilities," said David Williamson, director of the Visual Communications Technologies Consulting Service.

"Simply put, we believe that there is a class of brand marketer that cannot wait for the ‘ink to dry’ and will embrace these large-scale electronic display networks as a new wireless advertising tool, integrating the Web site, the broadcast ad and the more public environment where much of large format printed output is displayed today," he added.

Large-scale electronic displays are increasingly turning up in numerous venues around the world. As an example, Next Generation Network, Inc., through its E*billboards, claims to deliver more than 38 million advertising impressions every week through an installed base of more than 6,000 high-resolution video screens in locations such as convenience stores and subway stations in 18 U.S. markets.

Worldwide, the large format digital graphics printing market had revenues of $2.44 billion at retail in 1999 for all hardware, ink and media. This market is projected by CAP Ventures to grow to $4.11 billion by 2004, an 11 per cent cumulative annual growth rate (CAGR.) The large format graphics market is a segment of the overall worldwide large format digital printing market that also includes CAD inkjet printers and wide format engineering copiers.

The overall worldwide large format market (including CAD) had revenues of $4.86 billion at retail in 1999 for all hardware, ink and media. The overall large format market is projected by CAP Ventures to grow to $7.17 billion by 2004, an 8.1 per cent CAGR.

Does the emergence of large-scale electronic displays spell the end of large format digital printing? Hardly, said Williamson. Emerging applications, such as digital proofing, will continue to drive the growth of the large format printing market, in addition to high-volume specialty color inkjet printers beginning to appear to decorate everything from packaging to T-shirts.

"But we are fast approaching a turning point, particularly for large format output for advertising purposes. We consider large format electronic displays to have the potential to be at least equal to the size of the large format graphics market by the end of this decade. That is a substantial change and will cause an impact on what we print and how often."

"Our new consulting platform that tracks large-scale visual communications technologies, whether hard copy or electronic, is a strong commitment to see large format from all sides," said CAP Ventures managing director, Charles A. Pesko, Jr. "We now have a unique capability to help our clients anticipate and leverage the considerable changes that are coming in the large format market."

The Visual Communications Technologies Consulting Service is one of nine service areas now offered by CAP Ventures Inc. VCT currently provides annual retainer packages to clients in two areas: large format digital printing (LFDP) and large format electronic displays (LFED.) For more information on VCT and its market research and consulting services, please contact Scott Phinney at .