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As cameras go digital, a race to shape buyer habits


Just spotted this interesting article that writes about the race between manufacturers to share digital camera owners printing habits:

'The switch to digital cameras has already brought sweeping change to the $85 billion photography business. Eastman Kodak Co., the big film company, saw its business drop off and is struggling to adjust. Camera makers found a hot new product. Now, the next battlefield is rapidly taking shape: Printer makers like Hewlett-Packard Co. are in a fierce struggle with big retailers like CVS and Wal-Mart Stores Inc. as well as upstart Web sites to capture consumers while their habits for printing digital pictures are still in flux.

The stakes are high for retailers, who have long benefited from the foot traffic and profits generated by the $5.3 billion U.S. film-processing business. Wal-Mart stores brought in a hefty $3.5 billion in revenue from photo processing in the last fiscal year, or 2 percent of store revenue. They are even higher for H-P. While printing accounts for 30 percent of H-P's revenue, it generates 75 percent of the company's profit. H-P has been counting on printing color photos at home to keep the ink flowing for years to come.

For a while, H-P dominated the market. As recently as 2002, 91 percent of digital photos printed in the U.S. were produced on a home or office printer, according to research firm IDC. With more than 40 percent of the consumer inkjet-printer market, H-P was sitting pretty....'

Continue reading As cameras go digital, a race to shape buyer habits







Posted by Darren in our News category on November 20, 2004