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InfoTrends Study Reveals Challenges Ahead for Online Photo Services, Opportunities for Survivors


(Weymouth, MA) February, 12 2001... In a survey of over 1,000 U.S. Internet users, InfoTrends Research Group, Inc. found that online photo services are still in the early stages of adoption. The rate of exposure to these sites is impressive - 15% have posted a photo to a photo service Web site, and 35% have visited one to see other people's digital albums. However, many users are still just experimenting with the technology. About 30% of users post less than one photo per month, and less than a quarter of users have ordered prints online.

The survey also underscores the financial challenges facing online photo service providers, showing that the majority of prints ordered online were free, and total print revenue per user is low. "Slowness to monetize members, coupled with a financial environment that demands profitability in the near term, has led to a shakeout among online photo service providers," said Lia Schubert, research analyst, InfoTrends Research Group. "This does not necessarily mean that the category as a whole is failing, however. In fact, the survey results give reason to believe that nimble companies which survive the consolidation will be heavily rewarded."

The new report, "Online Photo Services End User Survey," available immediately, is the first comprehensive survey dedicated to the topic of online photo services. Data was recently collected through a Web-based study of U.S. Internet users over the age of 18. The report contains answers to 49 questions, with two sets of cross tabulations for detailed breakdown of the results according to demographic group, technology ownership, Internet connection speed, and many other factors. Results of a related study, "Digital Camera End User Survey," will be released shortly. This study provides detailed information on both digital camera users and non users' intent to purchase. Digital camera users' habits and the rate of digital camera adoption will have a profound impact on the future of online photo services.

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