State of the Professional Photographic Services Australia Part 4
The 2018 Ibis World report for Professional Photographic Services Australia has just been released (Report M6991). This report is very comprehensive and provides a snapshot of the industry as it currently is and its outlook for the future. It provides a snapshot of the state of Professional Photographic Services Australia.
Information such as this is essential for any business owner in being able to remain a viable business in today’s economy. Much of what is reported is generally sensed within the photographic community. The report provides concrete economic data and medium-term forecasts for the industry which photographic professionals could take into consideration in the development of their business.
Developments in technology will continue to impact the photographic services industry. Lower costs of technology coupled with high quality equipment will improve access to photographers, particularly new photographers to the industry. DSLR sales are projected to rise over the next five years.
Demand for professional photographic services is expected to fall, particularly from households. The impression is that amateur photographers can produce high quality images, therefore costs for photographic services will continue to be competitive particularly at the lower end. High end professional photographic work will still charge a premium.
Life cycle Stage and Performance of the Industry
The industry cycle is mature. The industry is projected to grow 2% over the 10 years through to 2022-2023. This is underperformance relative to the economy for the same period.
The industry is characterised by high competition by small owner-operator. Demand for services such as portrait photography has declined, demand for other segments remains strong. Demand for wedding and school photography is strong.
The key buying industries are graphic, commercial, advertising, and consumers. Key selling industries are photographic and optical goods and film processing services.
Products and Services
Wedding photography generates the largest revenue and has the largest share of the industry. Although amateur photographers saturate the low end of the wedding photography industry, wedding couples are prepared to pay a premium for professional photographic work. Advertising and fashion photography and real estate photography remains stable. School photography remains strong and stable. Competition for this part of the industry is very strong.
The industry derives revenue from consumers, businesses, schools and government departments. Consumers represent the biggest revenue market. The largest portion of the consumer market is for wedding photography. First marriages represent the greatest spend on photography with 2nd and 3rd marriages reducing the cost of photographic services. An important point is higher rates of re-marriages puts professional wedding photography at risk in terms of revenue.
School photography account for one quarter of the revenue in consumer spending. Photographers rely on parent purchases for this work. Private sector revues is about 35% of the industry. Commercial photographers’ revenue is from advertising services. Stock libraries are an increasing source of revenue for photographers.
© Fine Photography 2018