Kodak is trying to feed into their mini-lab business by selling as many
cameras as possible, breaking even on the cameras. they are taking the low
road to profitability (hopefully) by garnering enough market share to
improve back-end sales and to offer upgrades later. in the US, among
ordinary consumers and not us photo enthusiasts, Kodak is still a very
strong camera brand name. that plus Kodak is marketing in two major
segments, the soccer mom who simply doesn't have time to fool around with
printing at home and chooses to print her digital images at a traditional
photo lab, and the guy who isn't into gadgets for gadgetry's sake and also
is willing to let someone else take care of the printing. Kodak's business
model assumes negligible profit on the cameras themselves. this entire
strategy is very risky, which is why investors Kodak's share price is where
it is. they are in the middle of a "bet the company" strategy and no-one
knows how it will play out yet. one thing is clear and that is that the film
revenue that they were counting on to finance the transition to a digital
company isn't happening.
Herb....
----- Original Message -----
From: "Bob Shell" <[EMAIL PROTECTED]>
To: <[email protected]>
Sent: Friday, August 26, 2005 8:16 AM
Subject: Re: The Nature of Film's Final Throes
This news story is interesting in that it refers to Kodak's digital
business as expanding. I'm not sure that's accurate. The only digital
cameras that Kodak was actually building were their pro cameras, and they
recently discontinued their whole pro line of cameras and digital camera
backs. Their point and shoot cameras are just rebadged products from the
Far East. Yes, Kodak does make CCD imaging chips, but I don't know of any
cameras using them, and they can't be selling them in any volume. Kodak
has been floundering in its attempts to go digital.
The only thing I know of that might keep ordinary color negative film in
production is that in a number of states digital images are not allowed as
forensic evidence, but I expect that will change over time. And, so long
as motion picture companies shoot on film there will be a demand for those
types of film. But that market is also going digital.
I don't see a future for film as a consumer item. The days when you can
go into a drugstore or Wally-Mart and pick up a few rolls of film are
definitely numbered.
As a specialty item for fine art photographers, black and white film
should be around for some time, but will become increasingly expensive.
