US photo printing business set for boost

Press Release:

According to a new forecast report from InfoTrends, online photo service membership continues to experience steady growth, resulting in increased revenue for web-based print providers. InfoTrends reports that online photo service providers generated just under $450 million (around £225 million) in revenues from prints and photo merchandise in 2006, and that figure is expected to grow to more than $1 billion (£500 million) by 2011.

This growth is the result of significant increases in the overall volume of prints and photo merchandise, a consumer shift toward retail and online printing, and a stabilisation of print prices after several years of decline. InfoTrends also projects that the total number of uploading members will rise at a CAGR (compound annual growth rate) of approximately 13% from 2006 to 2011.

A number of challenges remain for businesses in this arena. The success of new online story-telling offerings continues to impact consumers’ use of photo sites by leading them away from printing, as Web-based photo viewing becomes the norm for an increasing percentage of the population. In addition, many late adopters of digital camera technology are not expected to share and print as many pictures online as early adopters did. The rapid growth of net-to-retail photo printing is also likely to attract consumers who may otherwise have printed through online pureplays.

“As retail activity increases, online photo services may become more of a conduit to retail fulfillment. Financially, these businesses may be faced with revenue sharing deals instead of enjoying manufacturer’s margins on everything they sell,” commented Alan Bullock, an Associate Director at InfoTrends. “On the other hand, there are still many new customers to be gained, and retail partnerships such as those recently announced between Shutterfly and Target, Kodak Gallery and Best Buy, and Kodak Gallery and Target, can expose many more consumers to available products and services, and should result in overall growth.”

InfoTrends expects that online photo service providers will continue expanding in areas such as image management, online storage, custom photo merchandise, and mobile imaging.

InfoTrends’ new forecast, Online Photo Services Market Forecast: 2006-2011, provides details on the current market size and five-year growth projections for the online photo services market. This document covers online photo service members and visitors, online (net-to-mail) print orders, and total online photofinishing revenue. It also outlines drivers, barriers, market share estimates, and key trends affecting the market.

Vendors profiled in the forecast include: Flickr, Kodak EasyShare Gallery, Snapfish by HP, Wal-Mart, Target, Shutterfly, Sony ImageStation, and many more.