FW: A Message from Kodak Management

[tim atherton]

FYI (pinch of salt time?)

"A Message from Kodak Management

Dear Photographer,

Because you are a valued partner, I am writing to explain the facts behind the announcements <http://kodak.prq0.com/apps/redir.asp?link=XbgdfdfgCJ,ZceaebbchjDA&oid=Udfie CA&iclitemid=XbfcbfhiCJ&tid=WbffeefCE> Kodak made on January 22nd. I want to avoid any potential misunderstanding about Kodak's commitment to traditional film photography as we experienced after a similar meeting last September.

Kodak remains committed to film, photographic paper, and traditional photography now and in the future. In fact, we will aggressively defend our leadership positions in film and paper.

True, we will accelerate growth of our digital products and services. However, our goal is to grow the total photography category for our mutual benefit.

At the upcoming Photographic Marketing Association meeting in Las Vegas next month, we will introduce four exciting new consumer films and one-time-use cameras and four new films and papers for professional photographers and professional labs. We will introduce a number of new digital products and services as well. These products, and more like them in our product roadmaps, underscore our commitment to photography.

In our meeting with investors and the news media, we outlined the fact that management is already delivering on our digitally-oriented <http://kodak.prq0.com/apps/redir.asp?link=XbgdfdfgCJ,ZceaebbchjDA&oid=Udfie CA&iclitemid=XbfcbfhiCJ&tid=WbffeefCE> growth strategy. Our new business environment requires a much lower cost structure and you will read about some of the plans we are developing to become more competitive. Our focus now is to take the operational steps to accelerate success.

Our intent in doing so is to make Kodak a stronger, more capable company. A company that is better able to meet your needs today and well into the future.

View <http://kodak.prq0.com/apps/redir.asp?link=XbgdfdfgCJ,ZceaebbchjDA&oid=Udfie CA&iclitemid=XbfcbfhiCJ&tid=WbffeefCE> January 22, 2004 Press Release.

Best regards,

Bernard Masson President Digital & Film Imaging Systems Eastman Kodak Company

[Michael Kadillak]

While it may not be good for those that work for Kodak and specifically Rochester, New York as a community, the best thing that could possibly happen to Kodak that will favorably impact large format shooters that use Kodak products is to read of the announcement that shortly they will be cutting 25% of their staff. Unfortunately, before it is all said and done, they will more than likely need to take another 25% hit in the staff department (total of 50% staff reductions) to allow them to be financially competitive in a global economy for digital and conventional film products and services. Revenues from conventional photography products will be absolutely necessary to anchor their risky transition to an uncertain digital based future.

There are many if's in the future for Kodak as they have been cursed by 100 years of a dominant market position and have been slow to react to a new wave of competition. If they are very lucky and stay focus on the transition process, the name Kodak will continue. If they stumble or are not 100% comitted to doing what is necessary to reinvent themselves, there will be another logo illuminated in the Rochester skyline and life will go on.

[jantman]

Sounds to me like they're trying to quell the panic that's happening among their customers, and even their dealers.

From the way it's written, it sounds like it was dictated by their PR firm (which it should be). If they wanted to do something to appease those of us who were in a panic, they'd make an honest commitment to film-based photography, and LF specifically. If they wanted to make ME happy, they'd bring back Super XX and dye transfer.

[Ed Eubanks]

What is ironic is the slippery slope that begins (and probably has already begun) here. The avid film photographer might-- just might-- read Kodak's announcement, determine the end of Kodak film and traditional paper is near, and immediately begin seeking a replacement product. When they figure out that Ilford/Arista/Fuji/xxxx (insert brand here) shoots pretty good too, they shift their business to that product. Now, Kodak has lost another customer-- and you can probably figure that 10% of the traditional photo world is doing this right now. 10% of sales hurts even Kodak, and they will inevitably consider this decrease as they work to cut costs and remain efficient and profitable in business. It may be this slippery slope that does in Kodak's silver-based photography lines.
As for Jason's comments (and those similar to them), I for one completely understand Kodak's decisions for dropping this product or that one. Kodak simply does not exist as a provider for the personal desires of photographers everywhere; they exist as a business intent on making profit! When the numbers of consumers who purchase a particular item become countable (i.e, a few thousand or less), profitability demands that said product be cut down to production which keeps it from leeching money off of other products-- too often, this will mean its end.
As valiant as Mr. Smith's efforts and work have been, I am simply astonished that Kodak has agreed (to date) to keep AZO in production. It cannot possibly be profitable for them to do so. If you want a sign of pure commitment to traditional photography, look no further. And if you want to put a halt to the downward trend of traditional photography, abandon all digital technology and invest every dime in those products you most prefer-- and convince all of your family and friends to do the same.
These companies are not out to get you, nor do they want you to be without your most precious products. It's just business.

[jantman]

Yes, Kodak exists to make a profit. However, the question is, can they afford to make some products just to keep their customers happy? They continue to make AZO because of the efforts of Mr. Smith - and because it's a legend and a favorite of fine art photographers. It's not their biggest seller, but it keeps part of their client base happy.

On the other hand, if they announced the end of large format products, they would upset a lot of people. If all of the fine art world pulled away from Kodak - films, papers, chemistry, accessories - and went to Ilford, and all of the schools and universities did that, it just might be a problem.

I'm not that worried about seeing the loss of Kodak B&W anytime soon. However, I'm still in high school, and intend on photographing for the rest of my life. During that time, Kodak will probably make a lot of changes. And I might as well anticipate them now.

[d.s.]

I know what I like. As long as they make the products that I like and use, I'll continue to buy them. And that's all there is to it. When they quit makeing it, or the price get too high, I'll spend my money somewhere else. Sorry about your luck!

[jnantz]

jason:

you can still get dye transfer matrix film. its made by ekfe and j and c photography sell it

http://www.jandcphotography.com/dyetransfermatrix.htm

[jantman]

I've seen that before, but thanks for the info. Dye transfer is number four on my list. First my mural project, then cyanotype, then a large Ilfochrome printing (first prints of lots of slides shot on 120), then dye transfer. That has my money spent until I go off to college.

[Abe Slamowitz]

I am totally amazed at how many times Kodak has shot itself in the foot and continues to do so. As a photolab owner, I can still remember all those nice little signs that we used to hang saying "We use Kodak paper for a good look". We were very proud of them and Kodak was our company! However, due to many poor management choices and extremely high price increases, as well as competition from other companies, Kodak has not kept with the market and kept raising prices. We switched. Today, there are many photo labs throughout the country (world) that now use Fuji, Agfa, or Konica products. Just imagine how well Kodak would be doing if we all switched back to Kodak "for that good look". Wake up Kodak! You're the only icon in the photography business!

[Michael A.Smith]

I have spoken with people at Kodak and they have reffirmed their committment to film-based photogtraphy. This last layoff will be phased in (or is it out) over a period of three years, so it is not as if all those people have left at once. They have consolidated divisions, or at least departments, to be more efficient. After my talk with them, I am confident of their committment. Of course, that could change next year, but for now, they seem to have realized that film-based photography is what brings in the money. And in March they will be running a new master roll of Grade 3 (and Grade 2) Azo. That represents a multi-year committment to that product at least.