Hello whizhost-ga,
The answer appears to be yes. Since many digital camera users make
their own prints at home, use online photofinishing or don’t make
prints at all, the demand for photofinishing at traditional photo labs
is decreasing.
According to an article titled “The Print Preference: Getting the
Digicam Finishing Customers into Your Store”, at PhotoReporter.com:
“The formula used to be, your customer would make three visits to your
store for each roll of film—once to buy the film, a second time to
drop it off for D&P and the third time to pick up the prints. Digital
cameras eliminate the first visit, and now uploading the images from a
computer can eliminate the second. But Jane Customer will still be
coming in to pick up her prints, and one visit is much better than
none at all.
In this dawning era of digital cameras, photo retailers are going to
have to work harder to get photofinishing business. Dealers know all
too well that digicam users, unlike film users, can make prints of
their photos at home on an inkjet printer. Or never make prints at
all—just view their photos on their computer or TV set, or even on the
little camera-back LCD screen.”
http://www.photoreporter.com/2003/09-22/features/the_print_preference.html
Another PhotoReporter article quotes, Joe Diliberto of Kodak as
follows:
“"Our business is continually changing—rapidly," he said, "and
independent photofinishers are feeling pressure from many sources. The
fluctuations in the economy affect consumer buying patterns, travel
and picture taking. Competition is increasing due to ongoing expansion
of on-site processing by most mass retailers. As a result of the
transition to digital, more pictures are being taken than ever before,
but fewer prints are being made. And, digital imaging labs and other
equipment cost more than analog image processing equipment did."””
http://www.photoreporter.com/2003/10-20/features/strategies_for_growth.html
Other relevant references:
Digital Camera Penetration Reaches 20% of U.S. Households, According
to New Report By InfoTrends Research Group
http://www.infotrends-rgi.com/home/Press/itPress/2003/4.22.03
“Rising digital camera penetration brings waves of change for the
photo industry, including changes for preferred digital photo print
locations and services. Currently, 82% of digital camera users print
digital photos at home and 81% of those who plan to purchase a digital
camera in the future expect to print their digital photos primarily at
home. Nevertheless, retail locations could become the leading digital
photo print location in the future. 64% of female respondents who own
a digital camera or who are planning to purchase a digital camera
believe that retail locations will become their preferred digital
photo printing location, if it is priced competitively with film
processing.”
Photo Marketing Magazine
Digital cameras introduce new consumers to photography
Challenge is convincing them to print more pictures
http://www.photomarketing.com/
“The first-time camera owners are among the most likely to have made
prints at home. Ninety-five percent of these digital camera users who
do some printing made images at home during 2002. Fifteen percent of
these households used a photo printer made specifically for digital
images, compared to 13 percent among all printing households. The fact
these households waited for the introduction of digital cameras before
purchasing a camera suggests they have an above-average interest in
technology. Thus, it comes as no surprise that this group would also
be the most likely to own another new form of consumer imaging
technology – photo-quality printers.”
Online Photo Sharing Will Contribute to 72% Growth in Online
Photofinishing Revenue, According to New Report by InfoTrends Research
Group
http://www.infotrends-rgi.com/home/Press/itPress/2003/8.26.03
“Online photofinishing revenue in North America is on track to grow
72% between 2002 and 2003, according to a new report by InfoTrends
Research Group. Worldwide, revenue is forecasted to grow at a 40%
compound annual growth rate through 2008. Much of this revenue growth
can be attributed to the viral marketing effects of sharing photos
online with friends and family. In 2002, these visitors accounted for
nearly 20% of the prints ordered online!”
Photo Kiosk and Digital Minilab Growth Strong as Retailers Gear Up for
Influx of Digital Camera Users
http://www.infotrends-rgi.com/home/Press/itPress/2003/6.17.03
“Retail photofinishers are becoming better equipped to service digital
camera users, according to a new forecast by InfoTrends Research
Group. InfoTrends predicts that digital minilab sales will experience
a compound annual growth rate (CAGR) of 15% through 2007. About 30% of
all minilab installations in North America are already digital.”
Digital Cameras Will Nearly Replace Film Cameras by 2008, According to
New Report by InfoTrends Research Group
http://www.infotrends-rgi.com/home/Press/itPress/2003/6.25.03
“The consumer digital camera market has made steady progress since the
first models were introduced in the mid-90s, but the consumer
photographic industry is just beginning to feel the impact of the
transition to digital,” said Michelle Slaughter, director of
InfoTrends Digital Photography Trends service. The shift to digital
photography will be nearly complete by 2008 due to advancing consumer
adoption of a wide range of consumer digital imaging solutions,
including home photo printing, retail digital photofinishing services,
online photo services, TV-based imaging products and services, and
wireless imaging.””
Dollars from Digital
What to Do When Film Goes Away
By Seymour Pixels
http://www.photoreporter.com/2003/10-20/features/dollars_from_digital.html
“Well, it’s official—Kodak admitted to an important meeting of
investment analysts that the days of film volume increasing year after
year are over. In fact, amazingly, the company felt they had to
reassure investors and the photo industry that Kodak is still
committed to silver halide photography. CEO Dan Carp said, "Kodak will
continue to offer world-class photographic films, chemicals and papers
... to satisfy the still-substantial—if shrinking—customer demand for
them."
Kodak now estimates that U.S. unit sales of film will decline by as
much as 12 percent per year for the next three years, with an even
sharper decline likely in Europe and Japan. Since film has always
provided generous profit margins for both Kodak and photo retailers,
you need to plan for a future where that once-mighty profit stream
dwindles to a mere trickle.”
A Look Ahead at 2003:
Running in Place or Pacing the Run?
http://www.photoreporter.com/2003/01-06/features/look_ahead_at_2003.html
“Overall challenge? Prints. Digital camera owners use 14 percent less
film, so processing’s down. The industry needs to keep those little
boxes flying out of the stores and those little canisters flying back
in. Another disturbing note: 12 percent of digital cameras bought last
year were bought as replacements for film cameras.”
I hope you have found this information helpful. If you have any
questions, please request clarification prior to rating the answer.
Googlenut
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