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Custom Items Will Drive Online Photo Revenue

1/27/2009 11:27:00 AM Eastern

WEYMOUTH, MASS. – Revenue from online photo printing will crest over $1.5 billion in 2012, according to InfoTrends.

The revenue growth will be drive by custom photo gifts and merchandise, which will account for 70 percent of the total, InfoTrends said.

“As online photo services continue to develop innovative custom photo gift items that cannot be produced at retail stores, they will remain the primary channel for ordering photo gifts for the foreseeable future,” the research firm noted.

While growing, the market for photo output will encounter its fair share of challenges, the research firm noted, particularly as consumers embrace social networking and alternative means of viewing images beyond printed output.

“Online photo services must consider their role in this ecosystem—will they remain focused on printed output, or will they take steps to open the walls that have surrounded their customers’ images for many years,” said Alan Bullock, InfoTrends associate director, in a statement announcing the research. “Such steps toward a more open architecture will increase the opportunities for printed output,” Bullock added.

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