Technological advancements allowed consumers to take high-quality images, which reduced industry demand.
Los Angeles, CA (PRWEB) September 06, 2013
The Photography industry in Canada experienced peaks and troughs during the past five years. While technological advances in digital cameras and photo-processing technologies helped the industry grow, this shift came at the expense of larger photography studios and individual photographers. Technological advancements also allowed consumers to take high-quality images, which often resulted in reduced demand for professional photography services. According to IBISWorld industry analyst Kiera Outlaw, “Reduced consumer spending significantly tightened the advertising budgets of public relations and marketing firms, thus weakening demand for commercial photography services.”
As these factors converged, industry revenue fell at an annualized 0.1% during the five years to 2013 to reach $2.6 billion in revenue. Although technology supported industry growth, it also lowered barriers to entry and resulted in non-employer growth and corporate consolidation. Moreover, the recession dealt a heavy blow to consumers and businesses. High unemployment and constrained disposable income caused many consumers to rethink professional photography services, or scale back spending by opting for basic packages. “The combination of budget-conscious consumers and rising industry operators resulted in significant price competition, which squeezed profit margins,” says Outlaw. In turn, the reduction in consumer spending caused businesses to reduce their advertising and marketing budgets, which led to reduced demand for commercial photography services. However, as the economic depression eased, industry revenue returned to growth.
The industry is on the road to recovery given that recessionary conditions have passed. Moreover, disposable incomes and corporate profit have both returned to growth. IBISWorld expects that these factors, when combined, will support average annual industry growth.
For more information, visit IBISWorld’s Photography in Canada industry report page.
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IBISWorld industry Report Key Topics
Photography in Canada provides still, video or computer photography services. Industry operators specialize in particular fields of photography, such as aerial photography, commercial and industrial photography or portrait photography. This report excludes all movie, television and video production (IBISWorld report 51211CA).
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