U.S. Internet Consumers Embracing Digital Imaging

New York, NY - Internet users pegged Tokyo-based Canon as the best manufacturer of digital cameras while Kodak, Sony, and Nikon received smaller endorsements for the title. The results come from a larger, technology-based study conducted in the spring by Ipsos Insight and signify Canon's stronghold as the leading brand in the U.S. for digital cameras. Approximately one-quarter (24%) of Internet users chose Canon as best manufacturer out of a list of fifteen brands.

Canon's endorsement is highest among those who are younger, college-educated, and with high annual incomes. Conversely, Kodak receives strongest support from older, less-educated consumers.

While Rochester, N.Y. based Kodak has lost some ground in sales in recent years, these results show Kodak has strong support for its cameras in the U.S. holding a halo-effect on its brand. "Kodak was the top manufacturer for digital cameras in the U.S. in 2005, but has now fallen to third place in terms of market share for 2006," states Leslie Rich, Vice President with Ipsos Insight's Media, Entertainment, and Technology practice. "Our study results show that consumer perception of the Kodak brand has been more positive than the brand's actual market share figures would reflect."

The Ipsos study also examined ownership of various consumer tech devices. American consumers are eager to utilize their amateur photography skills and print their own images. More than two-thirds (70%) of U.S. Internet users reported owning a digital camera and nearly the same amount (61%) reported owning a home printer capable of printing photos.

Interestingly, strongest ownership of digital cameras occurs among young Internet users, while strongest ownership of home printers occurs for the more mature Internet users. "This suggests that while the younger digital camera owners with children in their household are using their cameras to capture family pictures, the grandparents have printers for the pictures they're receiving via PC," Rich said. "Aside from mobile phones, these two products - digital cameras and home printers - are the most common technological devices in households right now. Americans are embracing their love for digital photography and sharing images within their social networks. The online photo storage and sharing industry will benefit from this and continue to grow."

Consumers also indicated an overwhelming desire for cheaper ink cartridges when provided a list of features and functionalities they would be most interested in. HP and other manufacturers face stiff competition in the ink cartridge business from non-traditional players like Walgreen's and even local grocery stores. "HP has long owned the ink cartridge business at a very profitable level, but consumers have caught on," Rich states. "With the amount of printing the amateur digital photographer is doing, ink cartridge costs are quickly coming under fire. Local ink refilling services and generic cartridges are plentiful for consumers - the HPs in the business should be very worried. While these new cartridge refilling options are criticized by the brand-name producers as being lower in quality, consumers are likely to sacrifice some quality in response to the perceived price-gouging by the industry leaders." Rich also points out that "to Kodak's credit, they appear to be the only brand-name in the printer industry touting their low-cost cartridges for their all-in-one printer in a current online marketing campaign."

Higher quality digital photos and all-in-one devices (scan, fax, print) were moderate desires. Manufacturers of printers and digital cameras should focus on improving many of these items if they are not already.

Methodology Data for this study were collected through an Internet-based sampling and data collection methodology using the Ipsos U.S. Internet panel, and accurately reflects the online population (18 years and older).

A total of N=1,183 respondents completed the online questionnaire between April 3 and April 8, 2007. With a total sample size of n=1,183 respondents, one can say with 95% certainty that the results are accurate to within +/- 2.85 percentage points.

For more information on this news release, please contact: Leslie Rich, PhD Vice President Media, Entertainment, & Technology Practice Ipsos Insight (814) 835-1785 [email protected]

Ipsos Insight Ipsos Insight is a marketing research consultancy that provides solutions to Fortune 500 companies in the areas of market assessment, brand management, innovation, and new product development. Our industry experts combine the discipline of marketing with the science of marketing research to offer expert consultation and strategic advice that builds powerful brands.

Our client service teams specialize in consumer products, technology, communications, health, pharmaceuticals, financial services, entertainment, retail, foodservice, agrifood, energy, utilities, and lottery and gaming.

To learn more, please visit http://www.ipsosinsight.com/.

Ipsos Ipsos is a leading global survey-based market research company, owned and managed by research professionals. Ipsos helps interpret, simulate, and anticipate the needs and responses of consumers, customers, and citizens around the world.

Member companies assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media. They measure public opinion around the globe.

Ipsos member companies offer expertise in advertising, customer loyalty, marketing, media, and public affairs research, as well as forecasting, modeling, and consulting. Ipsos has a full line of custom, syndicated, omnibus, panel, and online research products and services, guided by industry experts and bolstered by advanced analytics and methodologies. The company was founded in 1975 and has been publicly traded since 1999. In 2006, Ipsos generated global revenues of 857.1 million euros ($1.1 billion USD).

Visit www.ipsos.com to learn more about Ipsos offerings and capabilities.

Ipsos, listed on the Eurolist of Euronext - Comp B, is part of SBF 120 and the Mid-100 Index, adheres to the Next Prime segment and is eligible to the Deferred Settlement System. Isin FR0000073298, Reuters ISOS.PA, Bloomberg IPS:FP