The Worldwide Future of Digital Imaging Rafi Chickvashvili & Boaz Ben-Yaacov 26 June 2001

A person ’ s view of the future depends on where he ’ s standing -Anonymous

Key Drivers of Digital Imaging Trends Consumer desire for: Sharing Organization Modification Storage Repurposing Convenience

Key Enablers Input On-Ramps digitization, scanning, etc. Applications System computer, network, archive, editing software Output Devices Off-Ramps image delivery, fulfillment, prints

Digital Imaging Evolution Digital Cameras Scanners Film Cameras Computer Cell Phones Devices CD/Floppy Home Printing Retailers Internet

Current Photography Industry Photography is an important aspect of life as consumers seek to preserve and share their memories  consumers take 70 billion photos annually spending over $80 billion dollars on photography related expenditures  exposures are expected to grow to over 100 billion by 2002  Over 90% are captured by traditional film digital captures will reach 20 billion by 2002 Source: The Future Image Report: Web Photo Services

Image Input Sources 40% of computer owners import photo images 20.7% scanner 19.0% internet 16.3% CD 9.6% floppy disk 7.6% digital camera

Reason for Importing Digital Images % of respondents (change since 1996) 50.4% print at home (-3.8%) 47.6% send photo (+207%) 25.0% produce screensavers (-2.7%) 22.9% produce greeting cards (-37.1%) 17.7% share at an online site (nonexistent) 6.9% store on CD (+230%)

Home Printing Among US computer owning households (65%) 93.8% own a home printer 20.7% of those print pictures at home 33.5% own a scanner 40.3% print pictures at home 4.4% own a digital still camera 54.3% print pictures at home Source: DIMA Digital Imaging Consumer Survey: May 2000

Digital Capture Digital camera owners account for 4.4% of camera owners but take over 10% of total captures 10 million digital cameras will be sold this year Digital camera pricing continues to fall Camera resolution continues to climb To obtain prints from a digital camera: 93.2% of DSC users printed at home 1.7% brought to a photo- retailer

Online Photo Service Usage Convenience and access are key 51% of US households have internet service 25% use America Online(tm) Online picture services have been growing since % of photo enthusiasts have internet access 14% of US internet users have tried an online photo service 2.8% have ordered prints online Camera store/one hour lab store customers were the most likely to order prints online (6.2%)

Key Learnings Convenience drives new behaviors/opportunities Consumers are seeking easier ways to share their photos Internet and CD have experienced the largest growth during the previous three years Online fulfillment is very low but expected to grow significantly as the infrastructure is expanded

Barriers to Growth Film users can easily get prints but not digital images Digital camera users can easily get digital images but not prints Everybody can easily view a print, not everyone can view a digital image

What Happens Next? Enable the process On-Ramps  Film - scanners, digital mini-labs  DSC ’ s - auto upload, wireless transfer  Digital images - enable retailers to accept media Applications  Ease of use, security, improved speed, reliability, global community, multi-media Off Ramps  Simplicity of printing, enablement of display devices, anywhere/anytime

Wireless Transfer Specification Upload ability  Incorporated wireless cellular modem (43.2 kb/s today)  Worldwide reception (avail. on some GSM systems today)  Unlimited storage (avail. thru some storage providers today) Applications  Uploading  Sharing  Printing  Applications are built in to the camera Hardware  Internal Buffer (64 mb will hold approx. 140 images*)  Touch screen (with/without stylus)

Wireless Transfer Capabilities Upload ability  Incorporated wireless cellular modem (43.2 kb/s today)  Upload on today ’ s modem will take approx. 1 min and 20 secs per image.  To upload the whole buffer would take 3 ½ hours. Applications  Uploading (above)  Sharing (time is irrelevant even on today ’ s abilities)  Printing (time is irrelevant even on today ’ s abilities)