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US online photo services are growing
Mark Peters : November 8th 2005 - 10:56 CET
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InfoTrendsUS online photo services are growing : InfoTrends / CAP Ventures’ online photo services report finds that 29% of US internet users are now online photo service members, representing an increase of 12% over 2004. Pureplay online photo services, dot-coms, dominate the online print market. About 78% of online photo service members belong to a pureplay site like Kodak EasyShare Gallery, while just 14% are members of a retail online photo service like Walmart.com. Today, pureplay online photo services members are more motivated to share their digital photos, while retail online users are more motivated to print. Nevertheless, changing market dynamics could shake up the status quo of the online photo services market.
US online photo services are growingOnline photo service
“Today’s online photo service market is the pureplays’ for the taking. We are just beginning to see the effects of retailers’ entrance into the online photo services market,” said Jill Aldort, a Senior Consultant at InfoTrends/CAP Ventures. “Retailers are expected to drive higher year-over-year growth rates in terms of the number of people who use online photo services, as well as the number of prints ordered online.”


Digital photo storage
2005 marked the first year that major retailers began offering and marketing their online photo services in earnest, but retail vendors already process more prints per user than pureplay vendors. InfoTrends/CAP Ventures’ research shows that retail online photo service members order twice as many prints per month on average than pureplay members. Pureplay vendors must figure out ways to make money from members who are not printing, perhaps by tapping into consumers’ digital photo storage needs. Select demographic groups are willing to pay a fee for a membership that includes long-term photo storage.

Online photofinishing
High satisfaction levels continue to be a golden selling point for online photofinishing. Even among online users who also print at home and/or at retail, online photofinishing is perceived to be the quickest and easiest, the best way to print batches of photos, and the best way to obtain the highest-quality prints.

2005 Online Photo Services End User Study
InfoTrends/CAP Ventures’ report entitled 2005 Online Photo Services End User Study is available immediately. The report answers key questions about online photo service user and non-user behavior to provide guidance about online photo service providers, mobile imaging vendors, the retail community, and all digital photography vendors. This 100+-page analysis with 85 figures and two sets of 220-page tabulations provides extensive research and analysis by age, income, and other demographics and usage patterns. It discusses member activities in terms of uploading and sharing digital photos, member satisfaction, how many people are printing online, non-members’ interest in online photo services, and more.

About InfoTrends/CAP Ventures
InfoTrends/CAP Ventures is the leading worldwide market research and strategic consulting firm for the digital imaging and document solutions industries. We provide 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 the Infotrends-rgi.com website.

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