Kodak to sell off film division [UPDATE]
Kodak has made the decision to sell off its film and paper divisions, as it continues to restructure its business around printing
Author: Olivier Laurent
24 Aug 2012 Tags: Kodak
Kodak is looking to exit the film business, announcing that it would be selling its Personalized Imaging and Document Imaging departments, which encompass digital scanners, picture kiosks, souvenir photo products, photographic paper, as well as Kodak's legendary film businesses.
The news comes as Kodak continues to restructure the company as a printing business. "The initiation of a process to sell the Personalized Imaging and Document Imaging businesses is an important step in our company's reorganization to focus our business on the commercial markets and enable Kodak to accelerate its momentum toward emergence," says Kodak's chairman and CEO Antonio M. Perez. "In addition, we continue our initiatives to reduce our cost structure and streamline our operating models in an effort to return the company to profitability."
Kodak hopes to sell off the Personalized Imaging and Document Imaging businesses before June 2013, but it has moved to reassure photographers that it would seek buyers that share the firm's commitment to photography.
In a statement, Perez says that Personalized Imaging and Document Imaging divisions continue to be "valuable businesses that enjoy leading market positions as a result of superior products and service offerings. We remain steadfast in our commitment to our customers, and we will work to ensure that they continue to receive the exceptional levels of quality and service they have come to expect from Kodak. Customers remain the top priority of all our businesses - those we intend to sell and those that will remain part of Kodak."
A spokeswoman for Kodak tells BJP that prospective buyers will be able to use the Kodak trademark with all future film products.
She adds that Kodak "will continue to manufacture all its products (pro film, etc.) during this time [of transition]."
Kodak expects that the sale of these assets, as well as its continued cost-reduction initiatives, the curtailment of its legacy liabilities, and the monetisation of itsdigital imaging patent portfolio, "will be significant milestones toward completing the company's reorganization and emergence from Chapter 11 during 2013."
In his statement, Perez reaffirms his goal to transform Kodak into a printing company, claiming that it has the "broadest portfolio solutions - and enterprise services." He adds: "These businesses have substantial long-term growth prospects worldwide and are core to the future of Kodak. We are confident that our competitive advantages in materials science and deposition technologies, as well as our know-how in digital imaging, will enable us to capitalize on those opportunities and extend our leadership in key growth markets."
The printing business is currently dominated by companies such as HP, Epson and Canon. Before joining Kodak, Perez worked for HP, where he served as president and CEO of HP's inkjet imaging division before taking on the post of president of HP's consumer business.
Kodak also plans to retain its Consumer Inkjet, Entertainment Imaging, Commercial Film and Specialty Chemicals businesses.
BJP's technology contributor Jonathan Eastland says the announcement could push more photographers towards digital photography. "In the short term, this latest snippet in Kodak's sorry on going saga to regroup and rebuild will push many more photographers still dabbling with film but teetering on the edge of the digital divide, over the cliff. They'll simply give in to the inevitable, faced as they surely will be with ever increasing costs-per-silver-frame and further contracting lab infrastructure."
In recent months, both Kodak and Fujifilm have increased the prices of their professional and consumer films.
Eastland adds: "On a more positive note, the news ought to present Ilford with a golden opportunity to net significant gains from the fall-out of Kodak film enthusiasts pondering a switch in allegiance. Fuji has colour but Ilford's HP5+ black-and-white emulsion is up there with Tri-X; they just need to do a lot more to raise their image profile."
BJP has contacted Fujifilm and Ilford for a comment.
For more coverage of Kodak's exit from the film business, follow us on Facebook.
Comments
It is the most stupid thing they can do.
There are more and more people that want film or want to go back to film.
Even students are sick of digital.
I'm not against digital, but to stop making films, ect. it only out of making more, more, more money!
And that while it is for so many people, using and selling a must.
Because it is better for several issues!
The term 'commercial suicide' comes to mind.
Kodak has world class products and to sell them to focus on some fancy pants idea just speaks of the accountants forcing things though.
If I had the money I'd buy the film division myself - it's not just film . . it's the lifeblood of photography!
I hope someone with passion and committment takes it over.
Hold on, I thought Kodak were dropping the digital side of things to concentrate on film? Now they're changing their minds to concentrate on digital printing??? Maybe they're doing an Agfa, if the film side retains the Kodak name after it's sold off? In which case the film will most likely end up being rebranded Fuji, which is what Agfa film is now.
As found of #believeinfilm, we are the most awesome community on twitter that has ever existed. I'm happy to see the film division leave the Kodak mothership because right now their management is focused on doing whatever possible to get millions of dollars in bonuses they have fought very hard for. One on hand this makes me not respect them but on another it means that they will fight to get the highest possible price for the assets they are selling. http://www.foxbusiness.com/technology/2012/08/06/judge-clears-kodak-to-pay-6-million-in-performance-based-bonuses/
I'm unsure if this is true or not, but I've heard through the grapevine that Kodak is also looking at getting into the cell phone business. Because someone at Kodak's management has noticed that Apple is doing very, very well financially, so they figure they will also. No brainer.
If that doesn't work, they are going to get into the decorative concrete business. Because everyone and their dog needs concrete, and by doing special things like putting neat designs into the concrete you can actually change the whole meaning of driveways. Your driveway can actually become art! Yes, decorative concrete is the way of the future, and Kodak management has researched this very carefully and have come to the conclusion that Apple is not going to be using concrete in their new ipads and iphones, because although very inexpensive, its just too heavy! So they have thought of everything.
As far as competing with Epson in the digital printing field in the future, that's really a great idea on Kodak's part. Because all of us photographers now using Epson printers know how really terrible Epson printers are, and as soon as Kodak comes out with a yellow printer the size of a Mini Cooper (with built in phone & fax machine) we are all going to be delighted. It will absolutely not run on pigment inks, like those dopes at Epson have been doing. It will run on a thinned out, patented colored concrete mixture, 28 cartridges in all, which by the way will make your photographs last for 7000 to 8000 years according to Henry Wilhelm. Will I buy one? You bet'cha!!
what can i say - it is quite stupid. people love film, people are tired f digital... the only thing Kodak is interested in - money. It is business, they do not really care about consumer
well, now we get - kodak cares about money, and they do not care about people. i loved kodak films, but i will never buy camera or smartphone of kodak. never ever...
Selling the one thing Kodak is exceptionally good at isn't going to alleviate their troubles. Without its traditional core division, Kodak will become a jack of few trades, master of none.
Is it utopian to dream of Harman/Ilford buying their film assets? They're the only company out there that is truly committed to the analogue market.
Er... what was the news again??
Dear Sir or Madam of Kodak. Firstly, I didn't know you are doing well in printer and scanner business. Ironically, I didn't know it exist. Secondly, I thought film business should be the last division to drop! Isn't it what you reputed for?? I wonder how would be the founder react to today's decision... Well I hope someone will pick from what you have dropped off and make you regret for making this decision. It will be recorded in history forever.
Many manufacturers today are run by accountants for the sole benefit of shareholders, the stock markets and upper management bonuses.
Their founding principles and passion long forgotten.
Many companies today are run for their own benefit with customer service the last thing on the list. How many times now have we heard the sound bite "remain committed to film".
Kodak, give your film to Ilford, the small batch experts.
Expect it to be better than what Kodak offered
So it's clear now that Kodak isn't giving too much thoughts and care on their film department, they only kept it alive to sell it. Maybe the rebranded Tri-X will be better with more silver and meet the desire of photographers from the old days. Maybe Kodaks film will be longer around because it's no longer produced by Kodak.
Apparently Kodak's CEO Perez didn't get the memo that Epson printers have dominated the professional workspace for years. For this ex-HP has-been to throw this historic American company in the gutter to pursue his fancy-pants notion of toppling Epson is ludicrous and absurd. Who even pays attention to Kodak printers and cameras? No pros I see. Kodak digital cameras and gear are never going to be able to compete in this market. This is as dumb of an idea as Polaroid's decision to get out of the film business and adopt Lady Gaga as their pet monkey. What happened to the American CEO's of yesteryear who had enough foresight and wisdom to see the forest for the trees? FILM is making a comeback, with artists, students, and yes, even with many pros. It will never go away, just as painting and radio are still here in spite of digital "improvements". If Kodak divests itself completely of it's iconic past (film based photography) then it's employees are as good as fired. The solution is to pair down the film division to the top 4 or 5 emulsions and break off or sell the rest. Keeping it's foot in the door of film production (maybe as a direct supplier of discounted emulsions to university photo programs?) is the only way for Kodak to survive as a company and to keep its name from fading away into the dustbin of history.
Ever since Perez took the helm at Kodak the company has been in decline. Why is he still there?
A Kodak Film company that can succeed or fail on it's own, without being encumbered by the printing business and whatever else, will be a good thing.
Just calm down, film lovers. You'll be buying film from the spun-off company.
Re: "Just calm down, film lovers. You'll be buying film from the spun-off company."
Oh sure, like dopey optimism makes everything alright. The big problem with your assessment is that who ever purchases the film division will certainly NOT be Kodak, whether the name Kodak is on the box is not. Who's to say that some Chinese backwater firm wont swoop in and re-formulate the films we know and love into something cheaper and crappier? Did you forget the melamine in pet food and baby formula? Chinese honey badgers don't care, they 'll just take your money while you scratch your head wondering why your freshly developed film looks like dog poop.
Sorry, but your assurances are simply a no-brainer. Kodak's film either stays under Kodak's strict Q&A, otherwise whatever film we see in the future will bear no resemblance at all to the emulsions we know today. This may be a pessimistic view to some, but I think most people recognize the truth of what I'm saying. And no, I will most definitely NOT be buying film from the new spun-off company, unless that company is directly run by a proven, quality minded film business like Ilford or Fuji.
Like I said kodak employees, your days are numbered. Don't let your CEO drive you to the unemployment office and food-stamp line with his ridiculous scheme to make cheap inkjet printers. Time to start farming out your resumes now while it's not too late...
This sounded like a best-case scenario to me at first: get Kodak's film production (still a profitable business) away from the private equity vultures while it's still relatively strong. But then I read this:
"Kodak also plans to retain its... Entertainment Imaging, Commercial Film and Specialty Chemicals businesses"
And now I'm not so sure. What's clear there is that Kodak is not "exiting film", just the consumer market. Cinema products have long subsidised R&D and production of film for the still photography market; any buyer of the consumer business is going to be faced with a dramatic penalty in terms of scale. Perhaps not an insurmountable barrier, but Kodak's "consumer film business" is clearly not as attractive an enterprise as Kodak's "entire film business."
It also raises the spectre of Agfa, which spun off its consumer film business in a very similar way, and which in hindsight was an obviously deliberate method of ending that business in a cost-effective manner (the new company fails on its own, rather than incurring liability for the parent company).
Seriously BJP Technology Contributor!
So BJP's exceptionally clever technology contributor concludes this moves more people to digital! Seriously...if BJP's "advisor" has not worked out that film users are film users in a digital world because of aesthetic not cost, and that given the cost of film is high already, one less producer extends the market demand (which is growing) over a smaller group of suppliers and could actually improve scale economics...I think you should ask for your money or as a minimum your street cred back. And to quash the ongoing rumour of digital being cheaper than film, please don't feed the frenzy...count the cost of cameras and their updates, disk space, back ups etc...and the conclusions simple....not cheaper...but it is convenient...and that's from a digital and film user.
As far as Kodak's sale of it's film division...the history of businesses is littered with carcasses of bad decision making...and Kodak has specialised in those, since their days battling Fuji in the US....we can count this one an addition to their list....printers....seriously!
You taught us how to take pictures.
And, through the years you endeavored to make us better photographers.
You gave us the courage and confidence to face the realities of life,to record both happiness and sorrow.
You will remain in our hearts forever, Dear Yellow Giant!
Good Bye to You.
- krishna kumar
Let's look at the '70's when Kodak was the great Yellow Giant and was the only game in film,chemicals and paper.
Being second to none in terms of quality and supply chains with the finest minds and workforce in Rochester.
Nobody dared to buy any other product,
it was the best anywhere.
Armies of engineers and scientists at Kodak who were dedicated and ran the show.
They understood the products and marketplace.
Nowadays,I wonder how many of these folks are in control instead of the CEO's who cook up their multi million dollar golden parachutes who have plundered Kodak with no knowledge about photography.
They have written the doom to Kodak for quite some time.
Long live Fuji & Ilford..
Albert Lee
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