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View Full Version : Shutterfly Strikes a New Pose (The Motley Fool)



convergent
06-28-2006, 10:37 AM
Shutterfly Strikes a New Pose (The Motley Fool) (http://us.rd.yahoo.com/dailynews/rss/digitalimaging/*http://news.yahoo.com/s/fool/20060628/bs_fool_fool/115149763901)

The Motley Fool - Is this the end for digital-photofinishing pioneer Shutterfly? Or is it a new beginning? Earlier this week,

convergent
06-28-2006, 10:42 AM
This story is talking about Shutterfly, a pioneer in online photo finishing, who is now looking to either do an IPO, or be bought. They have apparantly been profitable for 3 years straight, so you'd think an IPO would be good... but investors may think these guys have peaked already.

I did some consulting with Kodak back in the peak of the dotcom boom. At the time, they were looking at Shutterfly and its rivals as their primary competitors of the future... and they diligently trying to reproduce the model. The thing is that, Kodak (and Fuji) have a big leg up on these guys. They have the equipment in the 1 hour photo shops and a network to connect them. They can build relationships with the big chains and allow you to order prints online and pick them up a short time later. So Shutterfly has to deal with that on one end... and deal with the photo sharing sites like Smugmug and Pbase on the other. And then they all have to compete with the likes of Epsons's PictureMate (and all the other inexpensive at-home printers that produce pretty decent copy). So is Shutterfly on the way up, or on the way out?