Kodak, AOL part ways on Net photo service
The "You've Got Mail" service will continue, but the dissolution of the partnership underscores doubts about the future of film.
Kodak, the world biggest maker of photographic film, said the companies will part ways on the "You've Got Pictures" partnership at the end of June, although the service will continue.
The service was launched in 1998, when digital camera sales were still tiny, as a way for subscribers to AOL's Internet service to drop off rolls of film for development at a local retailer and get digital copies sent to an AOL account, where they could store, share or order more prints.
Jay Esmele, a spokeswoman for Time Warner's AOL unit, said the decision was made mostly because of the decline in usage of film and film cameras, whose sales last year lagged behind those of digital cameras.
"This decision is more about leaving film behind and focusing on digital," she said.
The use of digital cameras, including those built into mobile phones, has grown dramatically in recent years, giving rise to online photofinishing sites, like Shutterfly and Kodak's Ofoto, that help manage and print snapshots. AOL said it has more than 100 million photos stored on "You've Got Pictures."
The decline in film sales--Kodak's primary revenue generator--has forced the Rochester, N.Y.-based company to drastically reorganize and invest in digital growth products such as Ofoto, which performs some of the same services as "You've Got Pictures."
"We are devoting our energy to Ofoto and other online partners," said Kodak spokesman Gerard Meuchner. "(AOL) was just one of a number of relationships that Kodak established with its retail partners, including CVS and Target...to allow people to store, share and print pictures," he said.
Both AOL and Kodak declined to discuss the terms of the partnership.
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