No More Kodak Moments as Company Exits the Camera Business
No More Kodak Moments as Company Exits the Camera Business
Posted 02/09/2012 at 9:12am
| by Paul Lilly
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It feels a bit surreal reporting on Kodak's decision to ditch its dedicated capture devices business, including digital cameras, pocket video cameras, and digital picture frames. In a weird sort of way, it's a bit like the death of Tony the Tiger's real life voice in 2005, only Kodak is still alive, albeit on life support after filing for Chapter 11 bankruptcy a couple of weeks ago.
In place of its deceased camera business, Kodak says it will now focus on expanding its current brand licensing program. On the consumer side, Kodak will maintain its online and retail-based photo printing and desktop inkjet printing ventures.
"For some time, Kodak’s strategy has been to improve margins in the capture device business by narrowing our participation in terms of product portfolio, geographies and retail outlets. Today’s announcement is the logical extension of that process, given our analysis of the industry trends," said Pradeep Jotwani, President, Consumer Businesses, and Kodak Chief Marketing Officer.
Kodak will take a $30 million charge as it exits the camera business and expects to shave more than a $100 million off of its annual operating expenses, which should help it pay back the millions of dollars it owes to Hollywood studios for outstanding flim rebates.
The very first Kodak camera appeared in 1888. It used roll film and took round pictures 2.5 inches in diameter.
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SPreston2001
February 09, 2012 at 5:28pm
Wow how can you not think of cameras when you think of Kodak?? I just got a Kodak digital camera for xmas! Damn jacka$$es better continue to support it lol.
MrHasselblad
February 09, 2012 at 1:48pm
For Kodak it started back in 1982 with the massive film format failure of the Disc film system; a negative so small it could not produce any type of quality image beyond 5x7.
The first real nail in the coffin for Kodak was allowing Fuji in; and to also sponsor something like the Olympics in 1984. Basically Kodak never saw Fuji coming. From the early eighties to digital Kodak film quality was rivaled by Fuji, Ilford, and even Agfa.
After just two minor innovations in digital (one in 1986, another in 1989) Kodak just couldn't keep up with the changing industry and basically tossed in the flag.
To this very date; the are still less than twelve digital cameras that can come close to the quality of film; even at the film speed of 200
steevonson
February 09, 2012 at 12:12pm
How do you destroy the most recognizable brand in the film/camera industry? Seriously I'd like to know. This is an Enron level screw up. There's bound to be a couple documentaries on this in a couple of years. I'm looking forward to it.
xmichaelx
February 09, 2012 at 12:42pm
Kodak made cameras, but they made their real $$ on film and development.
The business model was never updated to reflect the near obsolescence of film.I agree that it would make for a fascinating documentary!
steevonson
February 09, 2012 at 2:07pm
I understand where they slipped up but why it happened and then continued to do so I do not understand. They were once close to Coca-Cola with their branding and market recognition. They should've been able to diversify into anything and make a profit. Just disappointing.
devastator_2000
February 09, 2012 at 11:19am
Kodak not selling cameras is like Microsoft no longer selling Operating Systems.
zero_ken13
February 09, 2012 at 10:30am
Well this one is a sad news, when I was a kid I remember that Kodak is the brand that my family uses when we're taking pictures whenever and wherever. I love to cherish those moments, those pictures that I've had. Thank you Kodak for making our past unforgettable. I hope kodak will be remembered for the coming years, for being one of the greatest things that made us realize how beautiful it is to live. Remember a picture paints a thousand words.
Zoandar
February 09, 2012 at 9:26am
Why does Kodak owe rebates to Hollywood studios?
Oh, www.huffingtonpost.com/2012/02/02/kodak-bankruptcy_n_1248394.html
So after all these years of limelight, as in getting their fair half of the bargain, now they want to default on the agreement? Hollywood should have booted their ass to the curb 30 years ago for not paying. They should not be allowed to file bankruptcy.
xmichaelx
February 09, 2012 at 12:40pm
"They should not be allowed to file bankruptcy."
How exactly will *anyone* get paid, then?
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