Photographic Services Industry Profile

Companies in this industry provide services such as commercial and industrial photography, portrait photography, and special events photography. Major US companies include portrait studios Lifetouch and Portrait Innovations and commercial photo services Getty Images and Corbis.

The US photographic services industry includes about 18,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $6 billion. Low growth is forecast for the next two years. Challenges for the industry include increased use of digital photo technology by consumers and pressure on corporate marketing spending.

COMPETITIVE LANDSCAPE

Demand is closely tied to consumer income and corporate marketing activity. The profitability of individual companies depends heavily on effective marketing. Large companies have economies of scale in marketing and production. Small companies can compete effectively by offering specialized services or holding favorable locations. The portrait studio segment is fragmented: the 50 largest companies generate less than half of segment revenue. The commercial photography segment is highly fragmented: the 50 largest companies generate about 20 percent of segment revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products are family portraits and images for corporate advertising and marketing materials. Portrait studios account for about 60 percent of industry revenue. Peripheral sales (frames, albums, and related products) make up a small fraction of total revenues.

Family portrait companies specialize in just one segment of the industry, while many commercial firms also produce family portraits in addition to commercial work. In the commercial segment, ...