Operating under bankruptcy protection, Kodak have sold some of the customer accounts of Gallery to Shutterfly – another online publishing service specializing in photo books.
It is the online storage feature that is causing confusion with many Gallery customers (wrongly) assuming that their stored pictures will be safe.
However, what happens to your stored photos and projects after July 2nd depends upon where your Gallery account is located:
US And Canada – According to Kodak, customer accounts in the US and Canada will be transferred to Shutterfly as part of the sale.
Unless they have opted out, the stored photos of all customers will be moved to a Shutterfly account after July 2nd – there are around 5 billion stored photos so it is a major migration. Projects will not be migrated – these must be completed and any orders placed prior to July 2nd or they will be lost for good.
Note: Shutterfly does not offer full–resolution downloads of pictures for free – customers wanting to download their migrated pictures in full quality would therefore need to buy archived DVDs costing $9.99 to $19.99+
To avoid those costs, customers should download their pictures directly from Kodak Gallery before the service closes on July 2nd.
Europe – Accounts created at Kodak Gallery European sites will NOT be transferred to Shutterfly as part of the sale.
Projects must be completed and any orders placed July 2nd or they will be lost for good. Photos you wish to save must be downloaded using EasyShare by 23rd July or they will be lost for good – it would be wise to download them prior to 2nd July just in case!
Evidence of the lack of strategic management that helped cause the demise of Kodak: Shutterfly paid just $23.8 million for Kodak Gallery in March 2012 but Elite Daily report that “late 2011, the sale [of Kodak Gallery] was expected to net hundreds of millions of dollars for Kodak”.
Bankruptcy auctions aren’t a great place to maximize sales price – if only they had sold earlier…
Deal Of The Year?
See if you can spot the difference:
|Number of users||75 million||30 million|
|Number of pictures||5 billion (US/CAN only)||150 million (Aug 2011)|
|Mobile App Available?||Yes||Yes|
|Annual revenue||$75 million||$0|
|Established||11 years||2 years|
|Sale Price (2012)||$23.8 million||$1 billion|
Facebook paid over 40 times the price – for a loss making service with no revenue.
It’s sad to see a company like Kodak go under but it’s a great buy for Shutterfly.
Kodak Gallery customers (especially those in Europe) should act now to download and safeguard their projects and/or files in high quality.
The comparisons above with Facebook’s Instagram deal reminds me of my conclusion in ‘Did Nobody Learn From The Last Tech Bubble’ – I don’t believe we’ve hit the peak yet as the continuing lack of growth in traditional markets should keep the new tech economy blowing hard for another year or two.
However, the signs of a new tech bubble certainly appear to be there…