Snapfish.com Unveils Bold, New Free Model For Photos
Site to offer effortless developing, online sharing and storing for film-based and digital camera users
SAN FRANCISCO - January 17, 2000 - Snapfish.com, the first and
only end-to-end online photo site today unveiled its bold, new business model
that could fundamentally change the $14.20 billion U.S. consumer photo industry.
Snapfish.com will offer consumers effortless photo developing, printing,
digitizing and sharing -- all for free. While other photo sites prepare to
battle over the digital-only market, Snapfish.com will meet consumers where
they are today (95 percent still use film cameras) and enable them to enjoy
the benefits of online sharing and offline prints for free.
"Most people want to enjoy digital benefits like sharing photos online,
but they find digital cameras too expensive and a bit intimidating",
explained Snapfish.com co-founder and CEO Raj Kapoor. "Our message to
consumers is simple: Use your favorite camera, whether it's a
point-and-shoot, a disposable or a digital. We'll make sharing and storing
online a snap, and we'll give you prints and negatives from your film-based
camera for free. We're the one-stop-shop for all your photo needs,
servicing both digital and film cameras."
According to Gibboney Huske of Credit Suisse First Boston, a digital-only
online strategy misses a major market opportunity. "As less than four
percent of U.S. households currently own a digital camera, we believe
it is important for online photo companies to address the huge market
of film-based cameras (or users). We estimate that film volumes will
grow four percent worldwide through 2010 despite strong growth in digital
cameras," Huske said. "And, while that number is growing rapidly,
film-based camera use will remain in the 90-plus percent range for
years to come -- even as people begin adopting digital."
"Snapfish.com will bridge that gap and help consumers migrate to digital
cameras," said Kapoor. To make the complex back-end operations a reality,
Snapfish.com has developed a unique "click-and-mortar" partnership with
District Photo -- the largest mail order photo processing house in
the country. District Photo, an equity investor in the company, gives
Snapfish.com a leading edge with its unique capacity to handle and
process virtually limitless rolls of film. District Photo is
committed to providing Snapfish.com customers with the highest
quality photo processing and digitizing, delivered in a seamless and
The Snapfish.com process is fairly simple and direct. Consumers simply
register online, and then they can either receive a special film mailer
from Snapfish or print postage-paid labels directly from the site. The
consumer places a roll of film (or even a single use camera) in the
envelope and drops it in the mail. A few days later, Snapfish.com
e-mails the consumer to say that their free pictures are posted online. The
consumer then logs on to Snapfish.com to view pictures online. Once
online, they also can order optional reprints, enlargements or photo gifts,
such as mugs or T-shirts. And, by clicking just one button, the consumer
can effortlessly share pictures with friends and family. The consumer
then receives their free set of prints and negatives in the mail, paying
only for the cost of shipping and handling.
"We expect our primary source of revenue will be from photo-related
e-commerce", Kapoor said. Snapfish.com will offer a broad array of
photo-related products, from photo mugs and T-shirts to enlargements
and digital cameras.
The site also will contain targeted, contextual advertising related to the
interests of each consumer. Snapfish.com will not sell information about
consumers without their consent.
Snapfish.com is positioned to dramatically redefine the consumer photography
market by providing the first complete photo service that offers film
developing, printing, storing and sharing online, all for free. Snapfish.com
will provide both film-based and digital camera users with the ability to
seamlessly and effortlessly share, store and order reprints with unsurpassed
Privately held and backed by @Ventures, the affiliated venture capital arm
of CMGI, Mayfield Fund and private investors, Snapfish.com is headed up
by a management team of seasoned, second-generation Internet leaders
from Excite@Home and Cisco Systems.
With consumer photography representing a $14.20 billion market in the US alone,
Snapfish.com is poised to provide consumers with breakthrough benefits in
online photography and reinvent an enormous consumer category in the process.
The company is based in San Francisco, California.
Additional information is available at the company's Web site at http://www.snapfish.com.