Kodak phases out digital businesses, keeps film alive
Kodak has announced that, as part of its "ongoing strategic review," it will stop producing digital cameras, pocket video cameras and digital picture frames, but will continue to invest in its film division
Author: Olivier Laurent
09 Feb 2012 Tags: Kodak
Less than a month after announcing that it would seek bankruptcy protection in the US, Kodak has announced that it will stop the production of digital cameras and picture frames, as well as pocket-size video cameras.
"For some time, Kodak's strategy has been to improve margins in the capture device business by narrowing our participation in terms of product portfolio, geographies and retail outlets. Today's announcement is the logical extension of that process, given our analysis of the industry trends," says Pradeep Jotwani, Kodak's chief marketing officer.
However, the firm has moved to reassure film photographers. "Kodak's continuing consumer products and services will include the traditional film capture and photographic paper business, which continues to provide high-quality and innovative products and solutions to consumers, photographers, retailers, photofinishers and professional labs," it says in a statement.
The news comes as Kodak is undergoing a wide-ranging strategic review of its businesses with the "commitment to drive sustainable profitability through its most valuable business lines." But Kodak is quick to point out that the move won't mean the end for Kodak-branded digital cameras. Instead, the firm plans to license its brand to third-party manufacturer - a move that mirrors Polaroid's action in the years leading to and following its own bankruptcy.
Kodak says that it has contacted its retail partners, and is working closely with them to ensure an orderly transition. "Kodak will continue to honor all related product warranties, and provide technical support and service for its cameras, pocket video cameras and digital picture frames."
Kodak also plans to focus its resources on retail-based photo kiosks and digital dry lab systems, consumer inkjet printers and the Kodak Gallery.
Two weeks ago, BJP's technical writer Jonathan Eastland argued that Kodak needed to refocus its business around its film division. "What make them think that digital printing will push their share price up? For Kodak to make digital printers their core business is laughable," he said. "Each time Kodak has discontinued a film, they used the excuse that it represented less than a certain percentage of their turnover, but it's still a percentage of a very large niche market. There are still millions of photographers around the world that are using film, and not hundreds as Kodak seems to suggest. Kodak's got to go back and crunch their numbers about the film market. All people want are these little yellow boxes of film, and that should be their core business, even it means reducing the company's size further."
Comments
Kodak may have wavered but plenty of people still believe in film! https://twitter.com/#!/search/realtime/%23believeinfilm
This is such great news! There are so many people who still love the look of film! I wish Kodak many more years of photographic film and paper production and profitability.
As long as Kodak keeps making it, we'll keep buying and shooting film! You just need to believe!
such great news. the bankruptcy news scared me a bit but this is the best thing we could ask for. FILM FOR LIFE!
If kodak had only put some of their digital know-how into producing a scanner that perfectly matched their films! Give me a batch number and a big red button to digitize my Portra. Mmmm, Portra. I love Kodak.
Best news I've had all day. Kodak always did film best; hopefully concentrating their resources will lead them from strength-to-strength, profit- and product-wise. Analogue photography isn't going anywhere.
This definitely made my day !!
Film should never be neglected.
Only the reintroduction of colour infra-red film would make me happier...
This is kind of a "Well duh!" moment, don't you think?
Let's see them beef up the distribution channels.
Thank you for keeping film alive
I can't live without my Portra. As long as you continue to make it, I will keep supporting your business.
Good news for film photographers Kodak continued the film division. I love film 35mm, 120 en 4x5" Color and bw. Succes from Holland
Let us see how things develop.
I love Kodak film and will keep buying it (despite its ridiculous price) for as long as they produce it. However, I cannot help thinking they will just halt production in an instant and without warning. Anyone remember Ectarlure black and white paper. Oh, and their colour paper. Anyone know what's going on there.
From the negative...comes something truly positive!!!
Thank you Kodak, little yellow boxes forever :)
Thank you for reading my letter
Cheers Mr Kodak! I think you finally read my letter! :) Ref: http://blog.ankita-asthana.com/2012/01/22366.html
Thank you Kodak -- you just made my whole day. I've gone from worry about whether or not it's worth it to keep my Nikon F4 with an ever-dwindling film market and an ever-rising cost of development and printing to not even caring.
Does this mean that you are going to bring back old film lines that you had previously discontinued? Like Ektochrome? :D
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