The dominance of digital cameras is further reflected in the continuing downward spiraling trends in demand for film cameras, films sales and film processing. PMA reports that single-use 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 about 23 percent in 2006 in terms of units and value.

This point is best demonstrated by looking at the digital camera owners that made no standard prints in the past years. In fact, 35 percent of digital camera owners made no digital prints in 2004. Despite having made no prints, nearly half of the members in this group already had experimented with pictures on their computers, sent photo greeting cards, used kiosks to retouch photos or record CDs, or even ordered custom photo products such as calendars and T-shirts. There is no doubt all picture-taking consumers are a potential source of revenue for imaging firms whether or not they decide to make snapshot-size prints.

Servicing today’s consumers requires a different approach than in the past for the retailer. The focus now has shifted from how to create prints to finding efficient ways to incorporate images into consumers’ lifestyles. New trends like the scrapbooking craze also have helped to generate more reasons for consumers to make prints.

The causes and subjects of pictures have received less attention than the volume of printing in the past few years. “Why” people take pictures is important to identify new sources of demand. The new retail paradigm now is building around what consumers would like to do with each of their favorite images, as opposed to the number of prints they might produce.