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Online Photo Service Usage Continues to Grow, According to Report from InfoTrends/CAP Ventures

(Weymouth, MA) November, 17 2004... This year, 26% of Internet users have had photos posted to an online photo service, up from 19% in 2003, according to a recent survey conducted by InfoTrends/CAP Ventures. There are currently over 825 million photos stored at online photo services, and sharing and printing activity continues to increase.

A new print method is introducing more users to the online space. It involves uploading photos to an online site, and picking up the prints at a local retail store. Just a few consumers are using this approach today, but it will help raise awareness of online photo services in general as retailers market their online-to-retail services to their regular customers.

In spite of this growth, online photo services are still hindered by a lack of consumer education. “Many consumers feel that printing at home or retail is less expensive or provides better quality than printing online, but those who have printed online feel differently,” says Jill Aldort , a Consultant at InfoTrends/CAP Ventures. “The keys for continued growth in online services are better consumer education about online printing, boosting sales of merchandise like greeting cards and calendars, and improving the ratio of paying customers to site users.”

This study also provides in-depth coverage of online photo service users’ sharing and printing behaviors, and examines differences between users that print at home, at retail, and online. Within the online segment, the study differentiates between users of pureplay and online-to-retail photo services. Vendors can use these profiles and others to refine their strategies for various consumer segments of the market.

InfoTrends/CAP Ventures’ report entitled 2004 Online Photo Services End User Survey Analysis is available immediately. The 80-page analysis with 82 figures and two sets of 165+ page tabulations reveals detailed trends related to online photo service membership, sharing, storage, printing, demographics, user segments, and more. A related study entitled 2004 Online Photo Services Forecast is also available.

InfoTrends/CAP Ventures is the leading worldwide market research and strategic consulting firm for the digital imaging and document solutions industries. InfoTrends/CAP Ventures provides research, analysis, forecasts, and advice to help clients understand market trends, identify opportunities, and develop strategies to grow their businesses. Additional information about InfoTrends/CAP Ventures is available on the Web at www.infotrendsresearch.com.

CONTACT: Matt O'Keefe, InfoTrends tel. , fax , , Weymouth, MA 02189, .