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PMA 2006
By John Latta, WAVE 0611 3/17/06

Orlando, FL
February 26 - 28, 2006

This is the 82nd annual event of the Photo Marketing Association which has 20,000 members. There are over 600 exhibitors. The event fills a significant portion of the Orange Country Convention Center. The photo imaging industry is in a state of transformation. Film is dead. A high end film camera every 10 years has been replaced by a turn over of the complete product line every 18 months. The mega pixel wars have subsided and overtaken by feature wars. Cameras have WiFi built in, motion blur reduction, integration of video with still images, and auto red eye removal. But as cell phone cameras become more mainstream the potential to undercut the still camera market looms. At the center of this market turmoil is the simple fact that imaging is personal media. Consumers do not care about DRM but how to make digital as easy and emotionally as important as film, in all its forms, from the taking to the printed expression.

Cameras Show Significant Growth

Market Statistics Summary

NPD Group

Camera Sales
Digital and Film
US 2005
$5.9 B

Greatest Sector Growth
DSLR
44%

Lens Sales
$235.1 m
43%

Camera Cases/Bags
$128.1 m
24%

Flash Units
$54.6 m

Batteries
$49.9 m

Market Share by Pixels Captured
5m pixel – 37%
3m pixel – 13% (drop of 37.5% over previous year)

Mobil Phone Cameras
2005
45% of US phones were camera phones
64% of Europe phones were camera phones
90% of Japan phones were camera phones

PMA

An important driver behind today’s photo printer sales, thus home print volumes, is the growth in digital camera sales. Digital camera sales grew 39 percent in 2004, and 13 percent in 2005. Home printing growth in the same periods was 24 and 20 percent, respectively. New camera users are attracted to photo printers as their means to 24/7 access to printing services at home.

Home and retail printing: Digital cameras have revolutionized the personal photo experience at all levels, including the introduction of new printing options for consumers. Almost 4 billion photo prints were made on home printers in 2005, up 24 percent from the previous year. The volume of home prints is expected to reach 4.6 billion in 2005, a 20-percent increase.

Excluding cameraphones, single-use cameras and tethered computer video cameras, total camera demand was about flat in 2005 at 24.8 million camera units. The contribution of film cameras to the total sales mix was just 17.5 percent in 2005 and expected to be about 10 percent by 2007.

The number of cameraphones in operation is expected to have almost doubled in 2005, reaching 30 million units, from 16 million in 2004. The penetration of cameraphones is also thought to have already surpassed 20 percent of the 115 million U.S. households.

So far, cameraphones have had limited success in penetrating uses traditionally held by digital camera users, like preserving memories or printing. Limitations are posed by, most notably, low-resolution sensors, no flash, low storage capacity, difficult user interface and limited connectivity options.

Film sales: Digital cameras’ popularity is reflected in the downward trends in demand for film cameras, films sales, and film processing. Single-use (disposable) cameras accounted for 40 percent of total film sales in 2005 and are expected to be almost half of the film sales in 2006. The rate of decline in total film demand was 23 percent in 2005 and is expected to remain in the low 20’s in 2006. The film processing market is expected to decline 23 percent in 2006 in terms of units and value.

Will the Cell Phone Compete with the Digital Still Camera?

A panel discussion was held with industry participants on both sides. The overall view was that the cell phone camera is complementary to the DSC. But it was stated that in emerging markets that the only camera many have is what comes with the cell phone. Thus, the emergence of imaging could well be not DSC based in the less well developed markets.

Points raised in the discussion include:

Cell phone cameras are connected but this is also changing with DSC that included embedded WiFi;

Cell phone cameras have limited functionality compared to DSC but the capabilities of cell cameras is rising with zoom lenses, auto focus and higher resolutions; and

Cell phone cameras are carried everywhere where DSC are not.

One was left with the distinct impression that technically these two expressions of cameras are complementary today but in the future they well may be direct competitors. In the end the issue will be network connectivity and not the cameras and feature wars.

PMA Announces MPPI

PMA is advocating MPI, Mobil Photo Provider Interface, as a means to allow cell phone users to print pictures taken from phones. This standard is in two phases. Phase I allows users to find a Qualified Digital Processing Center (QDPC). When in the center the phone can be lined to a photo kiosk with Bluetooth, IR or removable media in the phone. Photos can then be picked up following processing. Phase II, which is now in Beta, allows users to transmits the pictures to a QDPC and pick them up after processing.

EZPnP – New Handheld Portable Backup and Display

Building on the iPod interface the DM180 has a one touch user interface. It has the ability to accept PC Card, Microdrive, SD and Memory Stick media. MPEG-4, WMA and MP3 is supported but not MPEG-2. The unit also supports USB OTG 2.0. There is a 2” LCD TFT display for viewing. It makes backup copies from the input media to HDD. The price is expected to be $399.

ZoomAlbum – Photo Albums in the Palm of the Hand

ZoomAlbum is software, printer paper and an album cover. A kit of these costs $24.95. A finished album, with hard cover, is 3” square. The user selects photos, prints a page and assembles an album which uses sticky adhesive backed sheets. This is inserted into the album which has a hard cover.

Pictronic – Frame Prints Using Standard Paper Media

Pictronic takes different approach to creating a framed picture. Rather than front lighting of a print or back lighting of a transparency it uses a bright light to illuminate a paper print. The results were quite impressive. However, one could not have writing on the back of the print. The wholesale 5 X 7 frame is $20.

PXL Soft – Digital Album Creation with Dg Foto Art

PXL has developed a portfolio of software products for the creation of photo albums. These are called: Gold, Gold Client, Classic, Lite and Designer. The prices range from $649 to $249. The Software uses a template for album page creation. Supporting the templates are elements that include: frames, borders, masks, clipart and backgrounds. At the Gold level it is possible to do image editing. Classic has been selling for over 2 years and the Gold version ships in April. The software is dongle activated.

JVC – Takes the Camcorder to New Levels of Utility

JVC with is Everio products has taken the camcorder where others have avoided – hard disk based. This reached new levels with the G series which support 20GB and 30GB embedded drives. These camcorders fit in the palm of one’s hand. Further, there is support for 16:9 format using a 2.2M pixel CCD. The optical zoom is 32X. One of the strengths of the Everio is that it supports MPEG-2 which makes it compatible with DVD. JVC was also showing the CU-DV10 docking station that allows for direct writing of DVDs from the camcorder.

Software is also provided which allows for:

Video clip playback on a PC;
Video authoring for DVD creation and
Non-linear editing.

pqi shows the P600

Continuing its presence in the media player space pqi exhibited the P600 which supports 800 X 576 resolution on a 4” TFT LCD screen. The HDD can be either 20 or 30GB. USB OTG is also supported. The P600 will also playback digital albums and digital audio.

Sony Enters the Photo Playback Market

About ½ the size of a DVD player the HDPS-L1. Media formats supported include: Memory Stick, SD, MMC and xD Picture cards. The software can organize the content into presentations. High Definition displays are supported with an appropriate display. The HDD is 80GB. Price is $299 with shipments at the end of May.

Star-E – Digital Frames go Commodity

Star-E was showing a family of TFT LCD digital frames. These range in diagonal sizes from 5” to 12”. The 12” frame sells FOB Taiwan for $140.

Nikon Announces Camera with WiFI Connectivity

As an extension to its line of cameras with WiFi Nikon added the Nikon S6 for $450. There is a 1/2.5-inch CCD and 6.0 effective megapixel resolution. The lens is 3x Zoom-Nikkor ED lens with a range of 35-105mm (35mm equivalent) with macro photography as close as 4cm.

Cannon Supports WiFI in Camera

The PowerShot SD430 has an 802.11b interface along with a 5m pixel sensor. The optical zoom is 3X.

FotoNation Supports UWB

FotoNation announced an in-camera module which will support wireless USB 2.0. The UWB module was co-developed by FotoNation, Wisair and Slyde Technologies. The module is based on the Wisair's Ultra -Wideband chipset, Slyde's DropIntegrationT architecture, and FotoNation's PTP technology. Connectivity is accomplished with a wireless USB dongle connected to a PC. The embedded wireless USB camera provides data transfer rates of up to 480 Mbps.

Eastman Kodak Updates Kiosk for Digital Printing

The WAVE used the Kodak G4 Digital Station and Kodak G4 Print Station with the new DP1 software to see, process and print images taken on the floor. Overall we were impressed with:

Overall speed of operation but some operations, such as skipping between many images were slower;

Many of the screen actions we intuitive and the on-screen navigation was easy; and

We were disappointed that the color balance adjustment was not better.

The prints were all borderless and thus the same aspect ratio was preserved. It was not possible to crop a picture to suit the desired image unless the aspect ratio was preserved.

Printing is done with dye sublimation technology with Kodak enhancements to protect the print. The system is modular allowing the retailer to add stations or printers as demand merits. The overall integration was professional. A basic module costs approximately $8,500 which includes a Digital Station and two Print Stations.

Logitech Targets Creative Professionals and More

Logitech is leveraging its presence on the desktop to extend the functionality of the keyboard and mouse with a third device called the NuLOOQ navigator which is the size of ½ of a tennis ball and is controlled by the non-mouse hand - $149.95. Bundled with the device is software to manage the user interface - NuLOOQ tooldial. This software will also be sold independently for $49.95. The navigator is to translate the richness of many commands in Adobe CS2 into easy to use hand and finger movements. Its capabilities include:

A circular touch-sensitive surface (the tooltuner dial) for adjusting option values in supported applications. A  moveable rubber-like ring (the navring controller) at the base allows designers to easily navigate images and documents, while embedded buttons (triggerpoint buttons) call up frequently used tools.

Some of the functions supported are:

Scroll and zoom with ease: A minor nudge of the navring controller moves selected images, while twisting it controls the zoom feature. The navring controller’s built-in sensor is based on advanced robotics technology that senses small movements for quick reaction.

Touch-sensitive control: Located on top of the NuLOOQ navigator, the tooltuner dial gives creative designers the ability to adjust or tune tool-option values, such as text leading or brush size. This feature minimizes arm movement and saves valuable time by eliminating repeat trips to the option bar to adjust values.

Real-time feedback: Feedback appears directly on screen  while tuning values, allowing creative designers to receive  immediate feedback while keeping the desktop clutter-free.

Context-sensitive and application-aware: The NuLOOQ navigator automatically detects the current Adobe CS2 application, selected object or tool, presenting applicable option values for that application when prompted.

Instant access to frequently used tools: Three built-in triggerpoint buttons embedded in the tooltuner dial provide instant access to commands, modifier keys and tooldial menus.

An overview of its use:

With the mouse in one hand and the NuLOOQ navigator in the other, users of Adobe CS2, Photoshop, Illustrator, and InDesign, can navigate documents and images, as well as adjust values with the slightest movement of a fingertip. Zoom and scroll navigation is very easy. Brush diameter, opacity, and hardness can be adjusted in mid-brush stroke. Font sizes can be adjusted without using the mouse and editing tools can be accessed with the push of a button. The included tooldial software pop up is a configurable circular menu shaped like pie slices. Aware of which application is currently running, NuLOOQ tooldial and NuLOOQ navigator display different options depending on which tool currently is in use. The NuLOOQ tooldial menu reduces mouse movement to a bare minimum to improve productivity.

In spite of the target audience of professionals, Logitech states that this is a significant and rapidly growing user base of hobbyists and consumers using digital cameras which are using Photoshop, for example. The NuLOOQ tooldial and NuLOOQ navigator also target these buyers.

NuLOOQ is a vertical market penetration test by Logitech. Is it possible to create a desktop productivity hardware and software combination that will drive penetration into a segment? The parallel is the Wacom tablet for professionals, and in particular artists.

In the Logitech booth was a professional artist using NuLOOQ. He was showing how both the Wacom tablet and NuLOOQ could be combined to significantly improve productivity with Photoshop. Much of the value of NuLOOQ comes from its ability to be customized to the particular use style of the artist. We pressed if this would be a barrier to adoption but the message was that it only took minutes to set up a NuLOOQ to gain considerable utility to the artist. In the demo we saw and participated in we were impressed with the fluidity of use and set up.

Logitech stated that the concept of user customization as seen on screen, by what the NuLOOQ tooldial provides, is sufficient to merit selling the software as a standalone product. We would agree.

Scrapbooking – Are There Early Signs of a Market Shift?

Scrapbooking is a $2.6B market. In spite of the fact that >85% of the images used for scrapbooking are digital <4% of the scrapbook products are digital. Virtually all of scrapbooking is done by women and over 56% of all digital cameras are bought by women. Cell phone cameras are having a major impact because cell phones are carried everywhere while the digital still camera is not.

Scrapbooking goes well beyond the technology being used. It has complex components which include:

Scrapbooking is a craft and form of artistic expression;

Scrapbooking has embedded social relationships with other scrapbookers and family members;

Scrapbooking is about telling a story, it is about the family or personal relations and sharing; and

Scrapbooking is about preserving the legacy of the family.

The market dynamics which are emerging include:

Scrapbooking output is being used for home décor;

Scrapbooking out is being use for quilting and other personal objects and

Scrapbooking is emerging in areas of pop culture and the family.

But there are many impediments to the market, especially with respect to the role that digital technology can play. Some of these include:

Individuals used to take 5 photos and now take 100 – photo management and selection of content is an important issue;

Digital technology is unreliable – the primary storage media, HDD, crash and only prints are enduring;

Output of images in printed form remains a major challenge – it is not as easy as what existed in film;

There are no scrapbooking digital solutions – very narrow components which are media silos;

Scrapbooking sharing has only limited expression;

Women must be dedicated and spend significant blocks of time to create meaningful scrapbooks and

Preserving memories, family legacy and raising a family are at conflict for most mothers.

At the center of these competing forces are issues which digital technology can only partially address:

Time demands of women raising a family; and

The desire to preserve family memories, legacy and history which takes time to accomplish.

In many families scrapbooking is only accomplished with significant dedication.

There are silo responses to these issues:

HP has elements software which will match an album which has been bought;

HP and Epson are making there printers easier to use for scrapbooking and output in general and

The DSC manufacturers are trying to make output easier to accomplish.

But there remains an expectation that technology can help. If it can a significant potential market lies ahead.

Scrapbooking originated about 20 years ago in Utah. This is related to the emphasis on family by the Mormons and genealogy. Salt Lake City is known as the Mecca of scrapbooking. The market has grown nationwide and accelerated in the last 10 years. A major impetus has been the digital camera. This allows for easy creation of content and also the generation of multiple copies without harming the original.

The social aspect of scrapbooking is part of the culture. Frequently women scrapbook together at crop parties. These can last many hours as techniques, output and memories are shared.

On average $5 per pages is spent but some pages can reach $50 or more.

There are 4,000 scrapbooking retailers in the US and, in comparison, only 2,000 independent photo retailers.

DigitalScrapbookPlace.com has 40,000 online users who can create online scrapbooks. However, most of these books are not printed out.

Support for the Emerging Digital Scrapbooking Market

Lucidiom Announces Luci

Lucidiom is entering the Scrapbooking market with an Automated Photo Machine (APM) market with a machine for the scrapbooking retailer. This computer, display and software allows the consumer in a scrapbooking store to assemble a page based on media brought into the store. Many layout and background features are provided. The software also automatically supports color coordination to assure the end user that only matching colors are used. A typical page would cost $12 but the final cost is up to the retail store.

Epson Enters the Scrapbooking Market

Epson Americas has created Epson Scrapbook Central and stand alone service station that allows scrapbooking retailers to provide a wide range of services. The unit is behind the counter and run by the merchant. Some of the features include:

Borderless 12’ X 12” prints
Art effects
Photo restoration
Archive to CD
Use of various papers
Copying of scrapbook pages
Workflow management
Generate bills and track sales

The unit is not designed to create pages but to support the creation of page content and copying of pages.

The first customer ship is in March and 40 units are in evaluation. The unit includes a PC, scanner and two printers. It integrates many of the Epson technologies into a vertical solution. The price is $9,000 and all items are warranted for 3 years. Epson also provides one day of training for each unit and promotional materials.

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Copyright 4th Wave Inc, 2007