BOSTON--(BUSINESS WIRE)--May 7, 2002--After significant market consolidation, the online photo services market is now on a positive trajectory. The remaining players in the space have scaled back free print offers and boosted site features that help users more easily buy prints and photo merchandise. As a result, total online photofinishing revenue in North America grew 183% between 2000 and 2001, while revenue per photo-pushing member increased 110%.

Several standalone online photo services providers are expecting to reach sustainable profitability in 2002. From 2002 to 2007, online photofinishing revenue is projected to grow at a compound annual rate of 39% in North America, 40% worldwide.

"The road ahead promises growth, but it will not be simple," said Lia Schubert, research analyst, InfoTrends Research Group. "Direct consumer use of online services will eventually reach a plateau, as the balance of printing is done at home and retail. Yet online services will continue to grow in their role as a hub in an expanding network for anytime/anywhere photofinishing, for which there are several significant initiatives underway. This bright future is tempered by a present reality of relatively low, but rapidly growing, revenue."

InfoTrends new report, "Online Photo Services Forecast Profits on the Horizon," available immediately, contains five-year projections for total online photofinishing revenue, number of prints ordered, photo site members and visitors, and many other metrics. It includes analysis of market dynamics and key issues, and profiles of over 30 key players, including AOL, ArcSoft, Club Photo, Fuji, HP, Kodak, Microsoft, Ofoto, PhotoWorks, Shutterfly, Sony, Snapfish, Walmart, Webshots, Yahoo, and many others.

InfoTrends' forecasting process was supported by the findings of two other recent studies, "Online Photo Services End User Survey," and "Photo Kiosk and Retail Digital Photofinishing Market Outlook," available separately.

About InfoTrends Research Group

InfoTrends Research Group, Inc. (www.infotrends-rgi.com) is the leading market research and consulting firm for digital imaging technologies and markets. InfoTrends helps its worldwide clientele improve the effectiveness of their strategic planning by providing valuable tools for intelligent decision-making, including forecasts, end user research, product analysis, and market trend tracking.