Kodak is releasing a new film - why is this important for you?

Kodak is launching a new black&white photographic film for the first time in 30 years. This is important and could well be a pivotal moment, just like when Kodak went bankrupt. It could be another Kodak moment.

As we all know, Kodak was one of the first companies that were hit by the digital disruption. They invented digital photography, but failed to build a sustainable business model and filed for a Chapter 11 procedure in January 2012.

Now, March 2018, they released a new black and white, traditional photographic film. Did they not learn from previous failures? And why is it important for you?

Let us take a couple of steps back.

The market for traditional film has exploded over the last years. Sales are increasing, new brands are introduced and in Italy, the classic brand Film Ferrania has re-opened the factory. The comeback of film photography is not about nostalgia, the new consumers are young and they are looking for another kind of experience than digital cameras and smartphones can offer. Obviously, the market is far from as big as it once was. And it will never be the same size again, but the current film users are prepared to pay a premium price, so the margins are much better than they used to be.

The comeback of film is not an isolated trend. Printed books, vinyl records, board games, magazines and bike stores are coming back in different ways. They were all crushed by digital disruption and are now making interesting comebacks. Not competing with the digital solutions that replaced them, but complementing them and offering another type of experience. The new film that Kodak released will not replace the billions of pictures we take with our smartphones, but it will fill a gap in the market for a more ”analog” experience. An experience that is more IRL, more tactile and perhaps offers more presence? You could even say that the experience is more connected, although it sounds like a contradiction.

The same week that Kodak announced that they are releasing a new film, Procter & Gamble, the huge consumer goods company, announced that they are re-balancing their marketing spend. Going from digital channels into areas with ”market reach”, for example, TV and audio. There are many reasons behind this shift, for example reducing spendings and increasing reach. Is this also a part of a bigger trend? It could very well be. According to Gartner, the CMO’s will reduce spending in ”marketing technology” from 27% down to 22% of the marketing budget. Rebalancing means a reduction in the spendings in marketing software and a relative increase in spending for other areas. 

Back to the original question - why should you care that Kodak is releasing a new film?

Of course, the announcement itself is not important, unless you have been missing a high-speed black & white film, But together with the announcement from P&G and the report from Gartner it highlights the importance of adding this extra customer experience to your marketing mix. An experience that is more tactile, more personal and more ”IRL”. The release highlights a new and growing market that is looking for an experience that is more IRL and ”connected”, and that is prepared to pay a premium price for it.

That is a good reason why it is important that Kodak releases a new film, it is just a tip of an iceberg.