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2005 PTN's State of the Industry
Digital Has Arrived. Now What...


Ted Fox
Ted Fox,Executive Director, Photo Marketing Association Int’l.
Gary Shapiro
Gary Shapiro, President and CEO, Consumer Electronics Association
Bill McCurry
Bill McCurry, McCurry Associates
Machiko Ouchi
Machiko Ouchi, Executive Director, JPEA International
Lisa Walker
Lisa Walker, President, I3A
James Chung
James L. Chung, President, International Photographic Council
Ed Lee
Ed Lee, Director, Consumer Services & Photo Printing Trends Service, InfoTrends
Liz Cutting
Liz Cutting, Senior Account Manager, NPD Techworld
Brent Boyer
Brent Bowyer, President and CEO, IPI (Independent Photo Imagers)
Mike Worswick
Mike Worswick, President, PRO (Photographic Research Organization Inc.)
Bryan Lamkin
Bryan Lamkin, Senior VP, Digital Imaging and Digital Video Business Unit, Adobe Systems
Bing Liem
Bing Liem, President and CEO, AgfaPhoto USA
Mark Roth
Mark Roth, President, Argraph Corporation
Paul Wild
Paul Wild, President, Bogen Imaging, Inc.
Eliott Peck
Eliott Peck, VP and GM, Sales, Canon U.S.A. Inc.’s Consumer Imaging Division
John Clough
John Clough, President, Casio, Inc.
Dan Schwab
Dan Schwab, VP, Marketing, D&H Distributing 
Martin Wood
Martin Wood, CEO, Delkin Devices Inc.
Kevin R. Donohue
Kevin R. Donohue, CEO, Digital Portal Inc.
Jaime Cohen
Jaime Cohen, GM & VP, Americas Region, Digital & Film Imaging Systems, Eastman Kodak Company.
John Lang
John Lang, President and CEO, Epson America, Inc.
Atsushi Yoneda
Atsushi Yoneda, President and CEO, Fuji Photo Film U.S.A., Inc.
Joe Murphy
Joe Murphy, Regional Sales Manager, GE/SANYO
Jack Showalter
Jack Showalter, President, Hasselblad USA Inc
Larry Lesley
Larry Lesley, Senior VP, Digital Photography & Entertainment, HP’s Imaging & Printing Group
Doug Pircher
Doug Pircher, VP/GM, International Supplies
JVC logo
Todd Schrader
Todd Schrader, Senior VP, Sales & Marketing, Konica Minolta Photo Imaging U.S.A., Inc
Roger Horn
Roger Horn, President, Leica Camera
Jim Gustke
Jim Gustke, VP, Memory Card Business Unit, Lexar
Steve Giordano Sr.
Steve Giordano Sr., Chairman and CEO, Lucidiom, Inc.
Henry Froehlich
Henry Froehlich, Chairman, MAC Group
Richard Kacik
Richard Kacik, Director of Sales, Mitsubishi Digital Electronics America
David Lee
David Lee, Senior VP, Nikon Inc.
Shiro Kazuta
Shiro Kazuta, President, Noritsu America Corporation
Stewart Muller
Stewart Muller, VP, Olympus Imaging America
Monica Helmer
Monica Helmer, National Marketing Manager, Optical Group, Panasonic Consumer Electronics Company
Ned Bunnell
Ned Bunnell, Director of Marketing, Pentax Imaging Company
Ken Gerb
Ken Gerb, Senior VP, Sales & Marketing, Samsung
Nelson Chan
Nelson Chan, Executive VP & GM, Consumer & Handset Business, SanDisk Corporation
Tak Inoue
Tak Inoue, President, Tamron USA, Inc.
Steve Tiffen
Steven Tiffen, President & CEO, Tiffen
Pete Richichi
Pete Richichi, Executive VP, Sales & Marketing, Wynit

These consumer attitudes regarding digital are our mandate for action:

Consumers have little realization that their images are at risk, either their own photos or digitized business images.

They don't fully appreciate or understand the risk factors—digital corruption (e.g., a hard drive crash, virus, or alteration of files when migrating to the latest platforms), technological obsolescence (e.g., CD-Rs burned in 1995 can't be read by the newest CD/DVD drives), or simply losing images amid terabytes of data.

People have a false sense of security if they haven't been affected—they believe that it won't happen to them.

Industry responsibility is twofold. Individual vendors must develop the products and services for consumer memory-keeping and sharing. I3A's collective role is to educate customers—objectively and realistically—on both the risks they face with digital pictures and the paths to minimize such risks.

IPC
My Cloudy Crystal Ball

James L. Chung, President, International Photographic Council

In the good old days of the photographic industry, people shot as much as 10 rolls of film and paid for all the pictures, even those pictures that didn't turn out well. Photographic business was booming for retailers and manufacturers. It is no longer the same in this day of the digital transition.

Digital photography today reflects the rapidly changing nature of the industry. People shoot with a media card instead of film. They bring media cards or CDs to the retail store and pick only the prints they want, and that's not a lot. Film sales and processing are down tremendously because more digital cameras are being used and are sold today than film cameras. In 2003, digital still cameras out-sold film cameras for the first time.

Another emerging trend is the kiosk, where people can bring in a media card or CD to print the pictures they want. Film and print businesses are shrinking. Film sales are down nearly 30% annually.

The majority of people who shoot pictures with digital still cameras and cell phone cameras do not have their pictures printed. They store pictures in computers and on CDs. When something happens to their computers or damage their CDs, they lose all their images forever.

Recent market research from InfoTrends/CAP Ventures shows the average print volume per digital still camera user has been slowly declining. The total volume (film and digital) will decline over the next five years at an average annual rate of 4%.

Competition between digital still cameras and cell phone cameras is heating up, with improved product features incorporated into cell phone cameras.

The Nokia N90 cell phone camera, with a lens from Carl Zeiss wins strong demand; it went on sale worldwide this past July. Both Nokia and Samsung have produced cell phone cameras with 5-megapixels in resolution, with excellent image quality.

Cell phone cameras have allowed people in the right place at the right time to capture crucial events when there are no news cameras on location. Although the image quality is not the best, it is still valuable, and often used in TV news coverage.

United Kingdom television broadcasters like the BBC have received thousands of video images of the recent London terrorist bombings, captured on cell phone cameras by commuters caught up in the tragedy.

Cell phone camera images were also used by news broadcasters following the Asian tsunamis in December of 2004.


   







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