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Digital Photo Sharing and Lower Print Prices Drive Online Photo Service Usage, According to a New Report by InfoTrends/CAP Ventures

(Weymouth, MA) ... According to a new forecast document from InfoTrends/CAP Ventures, one-third of U.S. households with digital cameras are expected to become members of an online photo service in 2004. Digital photographers primarily use online photo services to share their photos, and an increasing number of consumers are uploading more images to share, print, and store.

The forecast reports that online print prices are as much as 50% lower than they were just two years ago, and photofinishing revenues in the U.S. are expected to grow 34% between 2003 and 2004. On a worldwide basis, revenue is forecasted to increase at a compound annual growth rate of 41% through 2008.

“The online photo services market is expanding, despite more competitive pressure from the retail channel, and a handful of vendors have sustained profitability,” says Jill Aldort, a Consultant at InfoTrends/CAP Ventures. "However, competition has forced down print prices, and all online photo service vendors must look for ways to monetize photo sharing and storage in order to maximize future revenues.”

As digital image collections get larger and more unwieldy to manage on the desktop, online photo service vendors will have the opportunity to help digital photographers solve their photo sharing, management, and archiving problems. The rapid adoption of camera phones over the next three years means that many consumers will own multiple digital image capture devices. Online photo services will provide a central sharing and storage facility for digital camera and camera phone images.

InfoTrends/CAP Ventures’ new forecast report entitled 2004 Online Photo Services Forecast and Analysis is available immediately. It provides a five-year forecast for total online photofinishing revenue, including the number of online photo service users, photos uploaded, and prints ordered by registered members and visitors. The report provides market share of the leading vendors and an analysis of ongoing market issues and trends. It also profiles over 20 key players, including Ofoto, Shutterfly, Snapfish, Sony ImageStation, Wal-Mart, and Yahoo! Photos.

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

CONTACT: Matt O'Keefe, InfoTrends tel. , fax , , Weymouth, MA 02189,