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Photography is not the only industry affected by new technology. How many of you buy off the Internet because you can get a better deal than a local store? Ebay? Amazon? The sign of a successful business, photography or otherwise, is their ability to adapt and profit despite adverse market conditions. It is a fool of a business person that blames others for their inability to adapt and lack of foresight.
Well, revisit this thread when a client refuses to buy your custom designed album and only wants "a disc" so that they can go create their own for $20 on shutterfly.
No one's saying it doesn't kinda stink--but the problem is hardly unique to photographers.
Businesses that don't adapt to the changing market are doomed to fail. Businesses that find a way to adapt and revise products and strategies have a much greater chance to thrive.
Some of it is just inevitable as technology improves and people's "wants" change--cars "killed" the horse carriage business. Why? Because, while at first cars were considered foul, ridiculous inventions--once people got a taste for getting there faster, they wanted that. Then they wanted even faster, and more reliable. Then sleeker…and on it went. Horse carriage makers were undoubtedly not too thrilled about the whole thing, but they could either adapt and change with the market or they could go the way of…well, the way of the horse carriage.
How about the food industry? Butchers were commonplace just a few decades ago. Then came the ability to package "convenience" foods and with it, less of a need to go to the butcher every day for the meat you'd use for that day's meal. THEN came fast-food restaurants, and then MICROWAVES and now society is all about buying food that is instant and portable, even if it doesn't exactly taste like the stuff from the local butcher or the corner deli.
Typewriter manufacturers were likely not too thrilled about personal computers. The music industry. The movie industry. They are ALL having to adapt and change and find ways to provide what TODAY's market is after.
Photography is no different. First it was the transition from film to digital. Yes, film is still used, but it's not exactly a thriving, Top 10 kind of industry. Once digital became popular, the change was inevitable and companies and/or individual Photographers who don't find a way to adapt and meet the needs of TODAY's consumers will find a tough road ahead.
Shutterfly is just providing what the consumer wants. Oh, and Shutterfly, BorrowedLenses and the rest don't really care a WHIT about "saving the photography industry" anyway. They just want to make sure that when the fiscal quarter ends, their profits are up. I'm just surprised that BorrowedLenses hasn't yet started renting iPhones for your photographic needs. They haven't, have they?
EDIT: Oops! Accidentally deleted the whole post instead of editing it. That takes skill. Thanks for the "like," Pixmedic, but it went away with the original post!