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InfoTrends: US Online Photofinishing Revenue to Surpass $1 Billion by 2011
NewsEdge Corporation

Online photo service membership continues to experience steady growth, resulting in increased revenue for Web-based print providers, according to a new forecast report from InfoTrends.

InfoTrends reports that online photo service providers generated just under $450 million in revenues from prints and photo merchandise in 2006, and that figure is expected to grow to more than $1 billion 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 stabilization 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 percent 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," said 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.

The complete forecast is available immediately to clients of InfoTrends' Internet Imaging Trends Service. For more information or to make a purchase, visit our online store or contact Matt O'Keefe at +1 781 616 2100 ext. 115 or

InfoTrends, a Questex company, is a worldwide market research and strategic consulting firm for the digital imaging and document solutions industry.