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Google and Yahoo go toe to toe…

Snap Happy

By Fran Molloy
June 25, 2005.

Photo: Jessica Hromas

Yahoo! and Google are going toe-to-toe again - this time offering free online photo sharing services. Yahoo!’s new Photomail integrates with Yahoo! Photo online albums and Image Search, letting users insert dozens of pictures into the body of a web-based email without exceeding attachment size limits.

It’s a good bet that Yahoo! and Google are also aiming for a share of the lucrative online photo-printing market, which Lyra Research predicts will increase from $US6.6 billion ($A8.53 billion ) in 2002 to $US15 billion in
2008.

The growth of digital photography has fuelled big changes in the photo-printing industry, as film processing labs jostle to grab the digital dollar, and the huge uptake of camera-phones hits photo printers.

Worldwide, camera-phones already outsell digital cameras and film cameras combined. Analyst Tony Henning, managing editor of the Future Image Mobile Imaging Report, says that margin will grow substantially this year.

"We estimate more than 300 million camera-phones will be sold during 2005, compared to about 85 million digital cameras," Henning says. "Nine out of 10
digital images taken by consumers [this year] will be captured with camera phones."

And the battle for the print has begun on the web. Google started it, snapping up the picture-management software company Picasa in July last year. Days later, Picasa (formerly sold online for about $30) was available as a free download from Google’s home page. Picasa allows users to easily organise, edit, print, and transfer digital photos, and has a quick-archiving feature to scan and index all the image files on a computer’s hard-drive.

People in the US and Britain can also order prints through the software via a variety of big-name agencies, such as Kodak, Snapfish (owned by Hewlett-Packard) and Walmart.

The big attraction for Google, however, is Picasa’s online picture sharing program Hello. With Picasa on the desktop,
cataloguing photos to share through Hello becomes easy. Hello is also an instant-messaging system. Photo-sharing happens on a peer-to-peer basis, with optimised images popping up quickly across the messaging platform. Users can even transmit a high-resolution version of an image direct to a friend’s computer for local printing.

The newest incarnations of Hello and Picasa have also been integrated with Google’s other prize offering, Blogger, making the transition from image to blog a no-brainer.

Reports of the rise and rise of Google have overshadowed news of the original net carry-all, Yahoo!. Yet, Yahoo! not only has more users and more services than Google, the company also makes more money, pulling in about $US3.6 billion in revenue last year, compared with Google’s $US3.2 billion.

Yahoo! Photos has been around for years, offering simple online album features. Hitwise statistics for April showed that Yahoo! Photos is still in Australia’s top five favourite photo sites, with 9 per cent market share.

The race to provide online photo storage got interesting last month when
Yahoo! snapped up Ludicorp Research & Development, the creators of Flickr, a photo manage-ment site with a difference. As well as the usual online photo options, allowing users to store, search, sort, and share their pictures, Flickr concentrates on community features - slotting it right into Yahoo!’s traditional marketplace.

The Flickr difference centres on "tagging", where photos can be given descriptive keyword labels. Once tagged, rather than stagnating in a virtual album, photo postings can join a communal pool and feed limitless themed collaborations. Favourite themes include The Secret Life of Toys and Squared Circle groups. April figures show that after only one month with Yahoo!, Flickr is attracting more than 2 per cent of Australia’s photo-site visitors, while only 0.85 per cent visit Hello.

Yahoo News

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