North American Professional Photography Market Focused

Responsive

Credible

Visionary

Focused

Responsive

Credible

Visionary

• Market Segmentation and Forecast • Use of Technology and Services • Business Drivers • Consumer and Corporate Perspectives • Future Directions

Headquarters 97 Libbey Industrial Parkway Suite 300 Weymouth, Massachusetts 02189 +1 781.616.2100 [email protected]

Europe Sceptre House, 7-9 Castle Street Luton, Bedfordshire,

Asia Hiroo Office Building 1-3-18 Hiroo Shibuya-ku

United Kingdom LU1 3AJ

Tokyo 150-0012 Japan

+44 1582 400120 [email protected]

+81 3 5475 2663 [email protected]

Focused

Responsive

Credible

Visionary

Introduction Professional photography is a large, fragmented industry undergoing significant changes in all segments. With the widespread adoption of digital cameras over the last five years, many photographers are seeking opportunities to provide new services, improve their productivity, reduce costs, and extend their reach to new markets. At the same time, many new professional and semi-professional photographers are penetrating the market as technology lowers the barriers to entry. For technology vendors, the digital professional photographer is a lucrative and important market. These professionals typically purchase high-quality devices at premium prices on regular intervals. The new digital professional photographer must make many decisions about what services to provide and what tools to use. As the professional photography business becomes entirely digital, there are significant opportunities for vendors and service providers to displace traditional methods and create new revenue streams. Design

Workflow

Image capture

Studio management

Editing

Rights management

Printing

Web-based services (e.g. marketing, ordering, photo management)

Nevertheless, the professional photography is highly fragmented and decentralized. There are over 20,000 professional photography establishments (excluding many advanced hobbyists and part-time professionals) in 10 major market segments. Each segment has different business drivers, applications, workflows, technology requirements, and distribution channels. Portrait

Commercial

School

Advertising

Wedding

Corporate – brochures, catalogs, annual reports

Portrait

Photojournalists, fashion

Events, sports

Fine art Holiday (e.g. malls)

Vendors need a detailed understanding of the professional market to identify emerging opportunities, guide their product development efforts, and support their marketing programs. InfoTrends/CAP Ventures is conducting a comprehensive and detailed analysis of the North American professional photography industry to provide technology vendors with detailed, objective, and cost-effective information on this important market.

Strategic Consultants to the Digital Imaging and Document Solutions Industries

www.capv.com

Focused

Responsive

Credible

Visionary

Project Objectives The study will provide camera, printer, software, supplies, and service providers with critical information to support their marketing efforts, product planning, and distribution initiatives. Key information objectives of the study are outlined below: Segment and profile the North American professional photography industry Number of establishments Number of photographers Key segments Service offered Revenue mix by service Photo and print volume Types of photos Understand the use of technology and services Cameras Analog vs. digital Number of lenses Resolution Brands Printing Studio vs. on-site vs. lab printing Technology (e.g. film, inkjet, dye sublimation) Width or format of printer Resolution Print volume Size of prints Type of print (e.g. proof, final) Other hardware PCs Servers Scanners Storage Software Creative/editing Studio management Digital workflow Digital rights Mac vs. PC

Services Design Photography Photo enhancement Printing Finishing Photo management Rights management Use of Web Marketing Ordering Photo management Size and forecast the market for key products (units, revenue) Cameras Digital printers Software Media and ink Assess purchase intentions and brand preferences Cameras Printers Software Media and ink Understand use of channels Photo dealers On-line Understand critical issues, priorities, and requirements Products and technology Media & ink Operations Copyright management New services Business model Identify opportunities and strategies for technology

Strategic Consultants to the Digital Imaging and Document Solutions Industries

www.capv.com

Focused

Responsive

Credible

Visionary

Market Research This study will include an extensive review of existing research and interviews with technology vendors, consumers, advertisers, and professional photographers across a variety of market segments. Ultimately, the research will identify market segments, critical success factors, customer requirements, usage patterns, purchase plans, and other items that will drive vendors’ product, service, marketing, and sales activities.

Desk Research InfoTrends/CAP Ventures has conducted extensive research over the past 24 months with technology vendors, professional photographers, and consumers. Relevant InfoTrends/CAP Ventures research reports that we can leverage as part of this study include: Worldwide Digital Camera Forecast

Digital Fine Art Survey*

Digital Photo Printing Study*

Wide Format Printing and Professional Photographer Survey*

Digital Camera Survey* *Reports based on large structured surveys. InfoTrends/CAP Ventures will also thoroughly examine existing market information from a variety of sources that include: Industry trade associations

Web sites

Published industry reports

Government statistics

Periodicals and trade articles

Industry databases

User groups

Vendor white papers

In-Depth Interviews with Industry Suppliers InfoTrends/CAP Ventures will conduct 15 to 20 in-depth interviews with product and market managers for camera manufacturers, printer vendors, software developments, dealers, and related technology service providers. The intent of the interviews will be to understand product positioning, product development directions, and perspectives on how the market will develop over the coming years.

In-Depth Interviews with Professional Photographers InfoTrends/CAP Ventures will conduct up to 20 in-depth interviews with professional photographers from a variety of industry segments. The purpose of these interviews will be to identify critical technology and operational issues, understand business challenges and drivers, and provide input for the structured survey. These interviews will also be important for developing insights related to some of the more specialized market segments such as photojournalism and holiday photographers.

Structured Survey with Professional Photographers (500) Following the in-depth interviews, InfoTrends/CAP Ventures will conduct a structured survey with approximately 500 professional photographers in North America. The survey will provide critical statistics on technology adoption, usage patterns, purchase plans, and sentiments on business issues. The sample will include a mix of portrait, commercial, and fine art photographers.

Strategic Consultants to the Digital Imaging and Document Solutions Industries

www.capv.com

Focused

Responsive

Credible

Visionary

Structured Survey with Consumers (1,200) InfoTrends/CAP Ventures will conduct a structured survey with up to 1,200 consumers to better understand their use of professional photographers and interest in new services. The survey will address a variety of topics, including, use of portrait, wedding, school, event, and holiday photographers. The research will ask consumers about their use and preferences for prints, packages, viewing, ordering, and related issues.

Structured Survey with Advertising and Marketing Managers (200) InfoTrends/CAP Ventures will interview up to 200 advertising and marketing managers that use professional photographers for promotional and other commercial jobs. The purpose of these interviews is to better understand the use of professional photographers and stock photography for annual reports, product literature, direct mail, catalogs, corporate events, and other business applications. The research will address issues such as proofing, distributed printing, and photo management.

Analysis and Project Deliverables InfoTrends/CAP Ventures will analyze the desk research, in-depth interviews, and structured surveys to develop a comprehensive understanding of the opportunities and issues for technology vendors and service providers. Clients will receive a combination of reports, presentation material, and research data for senior management, product managers and planners, and sales and marketing executives. The material will include: Executive summary that addresses key issues, findings, and overall recommendations. Detailed written report (at least 150 pages) with text, charts, and graphs addressing the objectives of the study. Set of presentation-style overheads for internal communication of the research results. Data book of the survey tabulations for additional analysis of key questions and market segments.

Project Schedule InfoTrends/CAP Ventures intends to start this project in May 2005. We plan to be complete the research by early August and publish the report in September 2005. We will provide clients with interim data from the structured surveys as the research is completed.

Project Fees The participation fee is $16,995. An optional personal presentation is available for $2,000 plus direct travel expenses (if on-site visit is required). Clients may have other business units co-fund the study, review the questionnaires, and receive a copy of the report at no additional charge. InfoTrends/CAP Ventures invoices the first half of the fee upon initiation of the contract and the second half upon delivery of the report.

Strategic Consultants to the Digital Imaging and Document Solutions Industries

www.capv.com

Headquarters 97 Libbey Industrial Parkway Suite 300 Weymouth, Massachusetts 02189 +1 781.616.2100 [email protected]

Europe Sceptre House, 7-9 Castle Street Luton, Bedfordshire, United Kingdom LU1 3AJ +44 1582 400120 [email protected]

Asia Hiroo Office Building 1-3-18 Hiroo Shibuya-ku Tokyo 150-0012 Japan +81 3 5475 2663 [email protected]