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Kodak

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Not to be confused with Kodiak.
For other uses, see Kodak (disambiguation).

Eastman Kodak Company
Company typePublic
NYSE: KODK
Industry
PredecessorThe Eastman Dry Plate Company
FoundedSeptember 4, 1888; 136 years ago (1888-09-04)[1]
Founder
HeadquartersRochester, New York, US
Area served
Worldwide
Key people
ProductsDigital imaging, photographic materials, equipment and services
RevenueDecrease US$1.798 billion (2015)[2]
Decrease US$2 million (2015)[2]
Decrease US$16 million (2016)[2]
Total assetsDecrease US$2.138 billion (2015)[2]
Total equityDecrease US$103 million (2015)[2]
Number of employees
6,100 (2017)[3]
Websitewww.kodak.com
Kodak 35mm film cartridge alongside Asahi Pentax film camera. The shift from film to digital greatly affected Kodak's business.
Kodacolor II 126 film cartridge, expiring date 1980

The Eastman Kodak Company (referred to simply as Kodak) is an American technology company that produces imaging products with its historic basis on photography. The company is headquartered in Rochester, New York, and is incorporated in New Jersey.[4] Kodak provides packaging, functional printing, graphic communications and professional services for businesses around the world. Its main business segments are Print Systems, Enterprise Inkjet Systems, Micro 3D Printing and Packaging, Software and Solutions, and Consumer and Film.[5][6][7] It is best known for photographic film products.

Kodak was founded by George Eastman and Henry A. Strong on September 4, 1888. During most of the 20th century, Kodak held a dominant position in photographic film. The company's ubiquity was such that its "Kodak moment" tagline entered the common lexicon to describe a personal event that was demanded to be recorded for posterity.[8] Kodak began to struggle financially in the late 1990s, as a result of the decline in sales of photographic film and its slowness in transitioning to digital photography.[9] As a part of a turnaround strategy, Kodak began to focus on digital photography and digital printing, and attempted to generate revenues through aggressive patent litigation.[10][11]

In January 2012, Kodak filed for Chapter 11 bankruptcy protection in the United States District Court for the Southern District of New York.[12][13][14]

In February 2012, Kodak announced that it would stop making digital cameras, pocket video cameras and digital picture frames and focus on the corporate digital imaging market.[15] Digital cameras are still sold under the Kodak brand by JK Imaging Ltd thanks to an agreement with Kodak.

In August 2012, Kodak announced its intention to sell its photographic film, commercial scanners and kiosk operations, as a measure to emerge from bankruptcy, but not its motion picture film operations.[16] In January 2013, the Court approved financing for Kodak to emerge from bankruptcy by mid 2013.[17][18] Kodak sold many of its patents for approximately $525,000,000 to a group of companies (including Apple, Google, Facebook, Amazon, Microsoft, Samsung, Adobe Systems and HTC) under the names Intellectual Ventures and RPX Corporation.[19][20] On September 3, 2013, the company emerged from bankruptcy having shed its large legacy liabilities and exited several businesses.[21] Personalized Imaging and Document Imaging are now part of Kodak Alaris, a separate company owned by the UK-based Kodak Pension Plan.[22][23]

History

The Kodak factory and main office in Rochester, circa 1910

From the company's founding by George Eastman in 1888, Kodak followed the razor and blades strategy of selling inexpensive cameras and making large margins from consumables – film, chemicals and paper. As late as 1976, Kodak commanded 90% of film sales and 85% of camera sales in the U.S.[24]

Rivalry with Fujifilm

Japanese competitor Fujifilm entered the U.S. market (via Fuji Photo Film U.S.A.) with lower-priced film and supplies, but Kodak did not believe that American consumers would ever desert its brand.[25] Kodak passed on the opportunity to become the official film of the 1984 Los Angeles Olympics; Fuji won these sponsorship rights, which gave it a permanent foothold in the marketplace. Fuji opened a film plant in the U.S., and its aggressive marketing and price cutting began taking market share from Kodak. Fuji went from a 10% share in the early 1990s to 17% in 1997. Fuji also made headway into the professional market with specialty transparency films such as Velvia and Provia, which competed successfully with Kodak's signature professional product, Kodachrome, but used the more economical and common E-6 processing machines which were standard in most processing labs, rather than the dedicated machines required by Kodachrome. Fuji's films soon also found a competitive edge in higher-speed negative films, with a tighter grain structure.

In May 1995, Kodak filed a petition with the US Commerce Department under section 301 of the Commerce Act arguing that its poor performance in the Japanese market was a direct result of unfair practices adopted by Fuji. The complaint was lodged by the United States with the World Trade Organization.[26] On January 30, 1998, the WTO announced a "sweeping rejection of Kodak's complaints" about the film market in Japan. Kodak's financial results for the year ending December 1997 showed that company's revenues dropped from $15.97 billion in 1996 to $14.36 billion in 1997, a fall of more than 10%; its net earnings went from $1.29 billion to just $5 million for the same period. Kodak's market share declined from 80.1% to 74.7% in the United States, a one-year drop of five percentage points that had observers suggesting that Kodak was slow to react to changes and underestimated its rivals.[9][27][28][28]

Although from the 1970s both Fuji and Kodak recognized the upcoming threat of digital photography, and although both sought diversification as a mitigation strategy, Fuji was more successful at diversification.[25]

Shift to digital

The Kodak 'K' logo was introduced in 1971. The version seen here – with the 'Kodak' name in a more modern typeface – was used from 1987 until the logo's discontinuation in 2006. A revised version was reintroduced in 2016.[29]
Kodak logo from 2006 to 2016

Although Kodak developed a digital camera in 1975, the first of its kind, the product was dropped for fear it would threaten Kodak's photographic film business.[30][31] In the 1990s, Kodak planned a decade-long journey to move to digital technology. CEO George M. C. Fisher reached out[clarification needed] to Microsoft and other new consumer merchandisers. Apple's pioneering QuickTake consumer digital cameras, introduced in 1994, had the Apple label but were produced by Kodak. The DC-20 and DC-25 launched in 1996. Overall, though, there was little implementation of the new digital strategy. Kodak's core business faced no pressure from competing technologies, and as Kodak executives could not fathom a world without traditional film there was little incentive to deviate from that course. Consumers gradually switched to the digital offering from companies such as Sony. In 2001 film sales dropped, which was attributed by Kodak to the financial shocks caused by the September 11 attacks. Executives hoped that Kodak might be able to slow the shift to digital through aggressive marketing.[32]

Under Daniel Carp, Fisher's successor as CEO, Kodak made its move in the digital camera market, with its EasyShare family of digital cameras. Kodak spent tremendous resources studying customer behavior, finding out that women in particular loved taking digital photos but were frustrated in moving them to their computers. This key unmet consumer need became a major opportunity. Once Kodak got its product development machine started, it released a wide range of products which made it easy to share photos via PCs. One of their key innovations was a printer dock, where consumers could insert their cameras into this compact device, press a button, and watch their photos roll out. By 2005, Kodak ranked No. 1 in the U.S. in digital camera sales that surged 40% to $5.7 billion.[33]

Despite the high growth, Kodak failed to anticipate how fast digital cameras became commodities, with low profit margins, as more companies entered the market in the mid-2000s.[34] In 2001 Kodak held the No. 2 spot in U.S. digital camera sales (behind Sony) but it lost $60 on every camera sold, while there was also a dispute between employees from its digital and film divisions.[35] The film business, where Kodak enjoyed high profit margins, fell 18% in 2005. The combination of these two factors resulted in disappointing profits overall.[32] Its digital cameras soon became undercut by Asian competitors that could produce their offerings more cheaply. Kodak had a 27% market-leading share in 1999, that dwindled to 15% by 2003.[35] In 2007 Kodak was No. 4 in U.S. digital camera sales with a 9.6% share, and by 2010 it held 7% in seventh place behind Canon, Sony, Nikon and others, according to research firm IDC.[36] Also an ever-smaller percentage of digital pictures were being taken on dedicated digital cameras, being gradually displaced in the late 2000s by cameras on cellphones, smartphones, and tablets.

New strategy

Kodak's main headquarters in Rochester, New York

Kodak then began a strategy shift: Previously Kodak had done everything in-house, but CEO Antonio Pérez shut down film factories and eliminated 27,000 jobs as it outsourced its manufacturing.[37] Pérez invested heavily in digital technologies and new services that capitalized on its technology innovation to boost profit margins.[32] He also spent hundreds of millions of dollars to build up a high-margin printer ink business to replace shriveling film sales. Kodak's ink strategy rejected the razor and blades business model used by the dominant market leader Hewlett-Packard in that Kodak's printers were expensive but the ink was cheaper.[38] As of 2011, these new lines of inkjet printers were said to be on verge of turning a profit, although some analysts were skeptical as printouts had been replaced gradually by electronic copies on computers, tablets, and smartphones.[38] Home photograph printers, high-speed commercial inkjet presses, workflow software, and packaging were viewed as the company's new core businesses, with sales from those four businesses projected to double to nearly $2 billion in revenue in 2013 and account for 25% of all sales. However, while Kodak named home printers as a core business as late as August 2012, at the end of September declining sales forced Kodak to announce an exit from the consumer inkjet market.[39]

Kodak has also turned to litigation in order to generate revenue.[10][11] In 2010, it received $838 million from patent licensing that included a settlement with LG.[9]

In 2011, despite the turnaround progress, Kodak rapidly used up its cash reserves, stoking fears of bankruptcy; it had $957 million in cash in June 2011, down from $1.6 billion in January 2001.[40] In 2011, Kodak reportedly explored selling off or licensing its vast portfolio of patents in order to stave off bankruptcy.[40] By January 2012, analysts suggested that the company could enter bankruptcy followed by an auction of its patents, as it was reported to be in talks with Citigroup to provide debtor-in-possession financing.[13][41] This was confirmed on January 19, 2012, when the company filed for Chapter 11 bankruptcy protection and obtained a $950 million, 18-month credit facility from Citigroup to enable it to continue operations.[12][13][14] Under the terms of its bankruptcy protection, Kodak had a deadline of February 15, 2013 to produce a reorganization plan.[42]

In April 2013, Kodak showed its first Micro Four Thirds camera, to be manufactured by JK Imaging.[43][44]

On September 3, 2013, Kodak announced that it emerged from bankruptcy as a technology company focused on imaging for business.[21] Its main business segments are Digital Printing & Enterprise and Graphics, Entertainment & Commercial Films.[5]

On March 12, 2014, Kodak announced that Jeffrey J. Clarke had been named as chief executive officer and a member of its board of directors.[45][46][47]

On January 1, 2015, Kodak announced a new five business division structure; Print Systems, Enterprise Inkjet Systems, Micro 3D Printing and Packaging, Software and Solutions, and Consumer and Film.[7][48]

Timeline

1880–98

An original Kodak camera, complete with box, camera, case, felt lens plug, manual, memorandum and viewfinder card
An advertisement from The Photographic Herald and Amateur Sportsman (November 1889)
Advertisement for a folding "pocket" Kodak camera (August 1900)
  • April 1880: George Eastman leased the third floor of a building on State Street in Rochester N.Y. and began the commercial manufacture of dry plates.
  • January 1, 1881: Eastman and businessman Henry A. Strong formed a partnership called the Eastman Dry Plate Company.[49] Eastman resigned his position at the Rochester Savings Bank in order to work full-time at the Eastman Dry Plate Company.
  • 1884: The Eastman-Strong partnership was dissolved and the Eastman Dry Plate and Film Company formed with 14 shareowners. The Eastman Dry Plate Company was responsible for the first cameras suitable for non expert use.
  • 1885: George Eastman bought David Houston's patents for roll film and developed them further. These were the basis for the invention of motion picture film, as used by early filmmakers and Thomas Edison.
  • September 4, 1888: Eastman registered the trademark Kodak.[50]
  • 1888: The first model of the Kodak camera appeared. It took round pictures 6.4 cm (2.5 in) in diameter, was of the fixed focus type, and carried a roll of film enough for 100 exposures. Its invention practically marked the advent of amateur photography, as before that time both apparatus and processes were too burdensome to classify photography as recreation. The roll film used in the first model of the Kodak camera had a paper base but was soon superseded by a film with a cellulose base, a practical transparent flexible film.[51] The first films had to be loaded into the camera and unloaded in the dark room, but the film cartridge system with its protecting strip of opaque paper made it possible to load and unload the camera in ordinary light. The Kodak Developing Machine (1900) and its simplified successor, the Kodak Film Tank, provided the means for daylight development of film, making the dark room unnecessary for any of the operations of amateur photography. The earlier types of the Kodak cameras were of the box form and of fixed focus, and as various sizes were added, devices for focusing the lenses were incorporated.[51]
  • 1889: The Eastman Company was formed.[1]
  • 1891: George Eastman began to produce a second line of cameras, the Ordinary range.[52]
  • 1892: It was renamed the Eastman Kodak Company in 1892. Eastman Kodak Company of New York was organized.[1] He coined the advertising slogan, "You Press the Button, We Do the Rest."[53] The Kodak company thereby attained its name from the first simple roll film cameras produced by Eastman Dry Plate Company, known as the "Kodak" in its product line.
  • Early 1890s: The first folding Kodak cameras were introduced. These were equipped with folding bellows that permitted much greater compactness.
  • 1895: The first pocket Kodak camera, the $5 Pocket Kodak, was introduced.[54] It was of the box form type, slipping easily into an ordinary coat pocket, and producing negatives 1½ x 2 inches.
  • 1897: The first folding pocket Kodak camera was introduced,[51] and was mentioned in the novel Dracula, published the same year.
  • 1898: George Eastman purchased the patent for Velox photographic paper from Leo Baekeland for $1,000,000. After this time, Velox paper was then sold by Eastman Kodak.

1900–99

A Brownie No 2. camera
Eastman Kodak Non Curling 116 Film (Expired: 1925)
  • 1900: The Brownie camera was introduced, creating a new mass market for photography.
  • 1901: The present company, Eastman Kodak Company of New Jersey, was formed under the laws of that state. Eventually, the business in Jamestown was moved in its entirety to Rochester, and the plants in Jamestown were demolished.
  • By 1920: An “Autographic Feature” provided a means for recording data on the margin of the negative at the time of exposure. This feature was supplied on all Kodak cameras with the exception of a box camera designed for making panoramic pictures[51] and was discontinued in 1932.
  • 1920: Tennessee Eastman was founded as a wholly owned subsidiary. The company's primary purpose was the manufacture of chemicals, such as acetyls, needed for Kodak's film photography products.
  • 1930: Eastman Kodak Company was added to the Dow Jones Industrial Average index on July 18, 1930. The company remained listed as one of the DJIA companies for the next 74 years, ending in 2004.[55]
Kodak Camera Center, Tennessee, ca. 1930-1945
  • 1932: George Eastman dies at age 77, taking his own life with a gun shot. The suicide note he leaves behind reads, "My work is done. Why wait?"[citation needed]
Kodachrome II - Film for color slides
  • 1935: Kodak introduced Kodachrome, a color reversal stock for movie and slide film.
  • 1936: Kodak branches out into manufacture of hand-grenades.
  • 1940-1944: Eastman Kodak ranked 62nd among United States corporations in the value of World War II military production contracts.[56]
  • 1934-1956: Kodak introduces the Retina Series 35mm Camera
    Kodak Retina Series Cameras were produced between 1949 until 1956. It also had the KodaChrome Technology
  • 1959: Kodak introduced the Starmatic camera, the first automatic Brownie camera, which sold 10 million units over the next five years.
  • 1963: Kodak introduced the Instamatic camera, an inexpensive, easy-to-load, point-and-shoot camera.
  • 1970: Kodak scientists disclose the continuous wave tunable dye laser.[57] This becomes a product for several high-tech companies but not at Kodak.
  • 1975: Steven Sasson, then an electrical engineer at Kodak, invented a digital camera.[58]
  • 1976: The Bayer Pattern color filter array (CFA) was invented by Eastman Kodak researcher Bryce Bayer. The order in which dyes are placed on an image sensor photosite is still in use today. The basic technology is still the most commonly used of its kind to date.
  • 1976: Kodak introduced the first Kodamatic, instant picture cameras, using a similar film and technology to that of the Polaroid company.
  • 1976: The company sold 90% of the photographic film in the US along with 85% of the cameras.[9]
  • 1978: Kodak introduces the Ektachem clinical chemistry testing system. The system employs dry film technology, and within 5 years was being used by most hospitals in the country.
  • 1981: Kodak was sued by Polaroid for infringement of its Instant Picture patents. The suit ran for five years, the court finally finding in favour of Polaroid in 1986.
  • 1982: Kodak launched the Kodak Disc film format for consumer cameras. The format ultimately proved unpopular and was later discontinued.
  • 1986: Kodak scientists created the world's first megapixel sensor, capable of recording 1.4 million pixels and producing a photo-quality 12.5 cm × 17.5 cm (4.9 in × 6.9 in) print.
  • 1987: Ching W. Tang, a senior research associate, and his colleague, Steven Van Slyke, developed the first multi-layer OLEDs at the Kodak Research Laboratories, for which he later became a Fellow of the Society for Information Display (SID)
  • 1988: Kodak buys Sterling Drug for $5.1 Billion[59]
  • 1988: Kodak scientists introduce the coumarin tetramethyl laser dyes[60] also used in OLED devices. These become a successful product until the line of fine chemicals is sold.
  • 1991: The Kodak Professional Digital Camera System or DCS, the first commercially available digital single-lens reflex (DSLR) camera. A customized camera back bearing the digital image sensor was mounted on a Nikon F3 body and released by Kodak in May; the company had previously shown the camera at photokina in 1990.
  • 1993: Eastman Chemical, a Kodak subsidiary founded by George Eastman in 1920 to supply Kodak's chemical needs, was spun off as a separate corporation. Eastman Chemical became a Fortune 500 company in its own right.[61][62]
  • 1994: Apple Quicktake, a consumer digital camera was debuted by Apple Computer. Some models were manufactured by Kodak.

2000–09

  • 2003: Kodak introduced the Kodak EasyShare LS633 Digital Camera, the first camera to feature an AMOLED display, and the Kodak EasyShare Printer Dock 6000, the world's first printer-and-camera dock combination.
  • November 2003: Kodak acquired the Israel-based company Algotec Systems, a developer of advanced picture archiving and communication systems (PACS), which enable radiology departments to digitally manage and store medical images and information.[63]
  • January 2004: Kodak announced that it would stop selling traditional film cameras in Europe and North America, and cut up to 15,000 jobs (around a fifth of its total workforce at the time).[10][64][65]
  • April 8, 2004: Kodak was delisted from the Dow Jones Industrial Average index, having been a constituent for 74 consecutive years.[55]
  • May 2004: Kodak signed an exclusive long-term agreement with Lexar Media, licensing the Kodak brand for use on digital memory cards designed, manufactured, sold, and distributed by Lexar.[66]
  • January 2005: The Kodak EasyShare-One Digital Camera, the world’s first Wi-Fi consumer digital camera capable of sending pictures by email, was unveiled at the 2005 CES.
  • January 2005: Kodak acquired the Israel-based company OREX Computed Radiography, a provider of compact computed radiography systems that enable medical practitioners to acquire patient x-ray images digitally.[67]
  • January 2005: Kodak acquired the Burnaby, British Columbia, Canada-based company Creo.
  • January 2006: Kodak unveiled the Kodak EasyShare V570 Dual Lens Digital Camera, the world's first dual-lens digital still camera and smallest ultra-wide-angle optical zoom digital camera, at the CES. Using proprietary Kodak Retina Dual Lens technology, the V570 wrapped an ultra-wide angle lens (23 mm) and a second optical zoom lens (39 – 117 mm) into a body less than 2.5 cm (an inch) thick.
  • April 2006: Kodak introduced the Kodak EasyShare V610 Dual Lens Digital Camera, at that time the world’s smallest 10× (38–380 mm) optical zoom camera at less than 2.5 cm (an inch) thick.[68][69]
  • August 1, 2006: Kodak agreed to divest its digital camera manufacturing operations to Flextronics, including assembly, production and testing.[70][71] As part of the sale it was agreed that Flextronics would manufacture and distribute consumer digital cameras for Kodak, and conduct some design and development functions for it. Kodak kept high-level digital camera design in house, continued to conduct research and development in digital still cameras, and retained all intellectual property and patents. Approximately 550 Kodak personnel transferred to Flextronics.
  • January 10, 2007: Kodak agreed to sell Kodak Health Group to Onex Corporation for $2.35 billion in cash, and up to $200 million in additional future payments if Onex achieved specified returns on the acquisition.[72] The sale was completed May 1.[73] Kodak used part of the proceeds to fully repay its approximately $1.15 billion of secured term debt. Around 8,100 employees transferred to Onex, and Kodak Health Group was renamed Carestream Health. Kodak Health Group had revenue of $2.54 billion for the 12 months to September 30, 2006.
  • April 19, 2007: Kodak announced an agreement to sell its light management films business, which produced films designed to improve the brightness and efficiency of liquid crystal displays, to Rohm and Haas. The divested business comprised 125 workers. As part of the transaction Rohm and Haas agreed to license technology and purchase equipment from Kodak, and lease Building 318 at Kodak Park. The sale price was not disclosed.[74]
  • May 25, 2007: Kodak announced a cross-licensing agreement with Chi Mei Optoelectronics and its affiliate Chi Mei EL (CMEL), enabling CMEL to use Kodak technology for active matrix OLED modules in a variety of small to medium size display applications.[75]
  • June 14, 2007: Kodak announced a two to fourfold increase in sensitivity to light (from one to two stops) compared to current sensor designs. This design was a departure from the classic "Bayer filter" by adding panchromatic or “clear” pixels to the RGB elements on the sensor array. Since these pixels are sensitive to all wavelengths of visible light, they collect a significantly higher proportion of the light striking the sensor. In combination with advanced Kodak software algorithms optimized for these new patterns, photographers benefited from an increase in photographic speed (improving performance in low light), faster shutter speeds (reducing motion blur for moving subjects), and smaller pixels (higher resolutions in a given optical format) while retaining performance. The technology was credited to Kodak scientists John Compton and John Hamilton.[76]
  • September 4, 2007: Kodak announced a five-year extension of its partnership with Lexar Media.[77]
  • November 2008: Kodak released the Kodak Theatre HD Player, allowing photos and videos stored on a computer to be displayed on an HDTV. Kodak licensed technology from Hillcrest Labs for the interface and pointer, which allowed a user to control the player with gestures.[78]
  • January 2009: Kodak posted a $137 million fourth-quarter loss and announced plans to cut up to 4,500 jobs.[79]
  • June 22, 2009: Kodak announced that it would cease selling Kodachrome color film by the end of 2009, ending 74 years of production, after a dramatic decline in sales.[80][81]
  • December 4, 2009: Kodak sold its organic light-emitting diode (OLED) business unit to LG Electronics, resulting in the lay-off of 60 people.[82]

2010–present

  • December 2010: Standard & Poor's removed Kodak from its S&P 500 index.[83]
  • September 2011: Kodak hired law firm Jones Day for restructuring advice and its stock dropped to an all-time low of $0.54 a share.[84] During 2011, Kodak shares fell more than 80 percent.[85]
  • January 2012: Kodak received a warning from the New York Stock Exchange (NYSE) notifying it that its average closing price was below $1.00 for 30 consecutive days and that over the next 6 months it must increase the closing share price to at least $1 on the last trading day of each calendar month and have an average closing price of at least $1 over the 30 trading-days prior or it would be delisted. From the $90 range in 1997, Kodak shares closed at 76 cents on January 3, 2012. On January 8, 2012, Kodak shares closed over 50% higher after the company announced a major restructuring into two main divisions, one focused on products and services for businesses, and the other on consumer products including digital cameras.[86][87]
  • January 19, 2012: Kodak filed for Chapter 11 Bankruptcy Protection.[13][14][88] The company's stock was delisted from NYSE and moved to OTC exchange. Following the news it ended the day trading down 35% at $0.36 a share.
  • February 7, 2012: The Image Sensor Solutions (ISS) division of Kodak was sold to Truesense Imaging Inc.[89]
  • February 9, 2012: Kodak announced that it would exit the digital image capture business, phasing out its production of digital cameras.[90][91] Kodak sees home photo printers, high-speed commercial inkjet presses, workflow software and packaging with GlobalVision software integrated, as the core of its future business. Once the digital camera business is phased out, Kodak said its consumer business will focus on printing. It will seek a company to license its EasyShare digital camera brand.
  • August 24, 2012: Kodak announced that it plans to sell its film, commercial scanner and kiosk divisions.[92]
  • September 10, 2012: Kodak announced plans to cut another 1,000 jobs by the end of 2012 and that it is examining further job cuts as it works to restructure its business in bankruptcy.[93]
  • September 28, 2012: Kodak announced that it is exiting the inkjet printer business.[39]
  • December 20, 2012 Kodak announced that it plans to sell its digital imaging patents for about $525 million to some of the world’s biggest technology companies, thus making a step to end bankruptcy.[94]
  • April 29, 2013 Kodak announced an agreement with the U.K. Kodak Pension Plan (KPP) to spin off Kodak’s Personalized Imaging and Document Imaging businesses and settle $2.8 Billion in KPP claims.[95]
  • September 3, 2013 Kodak announces that it has emerged from Chapter 11 Bankruptcy Protection[96] as a company focused on serving commercial customers.[21]
  • October 17, 2013 Kodak brings European headquarters and the entire EAMER Technology Centre under one roof in Eysins, Switzerland. The relocation brings together the company's European headquarters and Inkjet demo facilities, which were based in Gland, Switzerland, and the Kodak EAMER Technology and Solutions Centre, which was based in La Hulpe, Belgium.[97]
  • March 12, 2014 Kodak names Jeffrey J. Clarke as its new Chief Executive Officer.[46][47][98]
  • July 30, 2014 Kodak is negotiating with movie studios for an annual movie film order guarantee to preserve the last source of movie film manufacturing in the United States.[99]
  • December 2014, Kodak announced its first phone, the Kodak Ektra smartphone made by Bullitt Group.[100] The phone was expected to become available in December 2016, initially in Europe.[101]
  • January 2016, Kodak shows off a prototype of the new Super 8 Camera at CES.[102]
  • January 2017, Kodak announced it was bringing back its Ektachrome film.[103]
  • May 2017, Kodak released the Ektra smartphone to the US market.[104]
  • June 2017, Kodak announced plans to release 7" and 10" tablets with ARCHOS in Europe.[105]
  • September 2018, Kodak announced that the 35 mm format of Ektachrome was made available again.[106]

Products and services

Main article: List of products manufactured by Kodak

Current

Kodak provides packaging, functional printing, graphic communications and professional services for businesses around the world.[6] Its main business segments are Print Systems, Enterprise Inkjet Systems, Micro 3D Printing and Packaging, Software and Solutions, and Consumer and Film.[7]

In January 2018, Kodak announced plans to launch KodakCoin, a photographer-oriented blockchain cryptocurrency.[107]

Digital printing and enterprise

Kodak provides high-speed, high-volume commercial inkjet, and color and black-and-white electrophotographic printing equipment and related consumables and services.[108] It has an installed base of more than 5,000 units.

Its Prosper platform uses Stream inkjet technology, which delivers a continuous flow of ink that enables constant and consistent operation, with uniform size and accurate placement, even at very high print speeds.[109] Applications for Prosper include publishing, commercial print, direct mail, and packaging. The business also includes the customer base of Kodak VersaMark products.[110]

The NexPress platform is used for printing short-run, personalized print applications for purposes such as direct mail, books, marketing collateral and photo products. The Digimaster platform uses monochrome electrophotographic printing technology to create high-quality printing of statements, short-run books, corporate documentation, manuals and direct mail.[109][111][112]

Flexo printing

Kodak designs and manufactures products for flexography printing. Its Flexcel[113] line of flexo printing systems allow label printers to produce their own digital plates for customized flexo printing and flexible printed packaging.

Functional printing

The company currently has strategic relationships with worldwide touch-panel sensor leaders, such as the partnerships with UniPixel announced on April 16, 2013 and Kingsbury Corp. launched on June 27, 2013.[114][115][116]

Enterprise professional services

Enterprise professional services offers print and managed media services, brand protection solutions and services, and document management services to enterprise customers, including government, pharmaceuticals, and health, consumer and luxury good products, retail and finance.

Digital printing solutions

In 1997, Heidelberg Printing Machines AG and Eastman Kodak Co. had created the Nexpress Solutions LLC joint venture to develop a digital color printing press for the high-end market segment. Heidelberg acquired Eastman Kodak Co.'s Office Imaging black and white digital printing activities in 1999. In 2000, they had launched Digimaster 9110 - Black & White Production Printer and NexPress 2100 Digital Color Press.

In March 2004, Heidelberg transferred its Digital Print division to Eastman Kodak Co.[117] under mutual agreement. Kodak continues to research and develop Digital Printing Systems and introduced more products.

At present, Kodak has commercial Web-fed presses, commercial imprinting systems - Prosper, VersaMark and commercial sheet-fed press - NexPress digital production color press, DIGIMASTER HD digital black and white production printer.[118]

Consumer inkjet ink cartridges

Kodak entered into consumer inkjet photo printers in a joint venture with manufacturer Lexmark in 1999 with the Kodak Personal Picture Maker.

In February 2007, Kodak re-entered the market with a new product line of All-In-One (AiO) inkjet printers that employ several technologies marketed as Kodacolor Technology. Advertising emphasizes low price for ink cartridges rather than for the printers themselves.[119]

Kodak announced plans to stop selling inkjet printers in 2013 as it focuses on commercial printing, but will still sell ink.[120]

Graphics, Entertainment and Commercial Films (GECF)

Graphics

Kodak's graphics business consists of computer to plate (CTP) devices, which Kodak first launched in 1995 when the company introduced the first thermal CTP to market. In CTP, an output device exposes a digital image using SQUAREspot laser imaging technology directly to an aluminum surface (printing plate), which is then mounted onto a printing press to reproduce the image. Kodak's Graphics portfolio includes front-end controllers, production workflow software, CTP output devices, and digital plates.

Global Technical Services

Kodak’s Global Technical Services ("GTS") for Commercial Imaging is focused on selling service contracts for Kodak products, including the following service categories: field services, customer support services, educational services, and professional services.

Entertainment Imaging and Commercial Film

Kodak's Entertainment Imaging and Commercial Film group ("E&CF") encompasses its motion picture film business, providing motion imaging products (camera negative, intermediate, print and archival film), services and technology for the professional motion picture and exhibition industries.

E&CF also offers Aerial and Industrial Films including KODAK Printed Circuit Board film, and delivers external sales for the company’s component businesses: Polyester Film, Specialty Chemicals, Inks and Dispersions and Solvent Recovery.

Motion picture and TV production

The Kodak company played a role in the invention and development of the motion picture industry. Many cinema and TV productions are shot on Kodak film stocks.[121]

The company helped set the standard of 35mm film, and introduced the 16mm film format for home movie use and lower budget film productions.

The home market-oriented 8mm and Super 8 formats were also developed by Kodak. Kodak also entered the professional television production video tape market, briefly in the mid-1980s, under the product portfolio name of Eastman Professional Video Tape Products. In 1990, Kodak launched a Worldwide Student Program working with university faculty throughout the world to help nurture the future generation of film-makers. Kodak formed Educational Advisory Councils in the US, Europe and Asia made up of deans and chairs of some of the most prestigious film schools throughout the world to help guide the development of their program.

Kodak previously owned the visual effects film post-production facilities Cinesite in Los Angeles and London and also LaserPacific in Los Angeles. Kodak sold Cinesite to Endless LLP, an independent British private equity house.[122]

Kodak previously sold LaserPacific and its subsidiaries Laser-Edit, Inc, and Pacific Video, Inc., in April 2010 for an undisclosed sum to TeleCorps Holdings, Inc.

Kodak also sold Pro-Tek Media Preservation Services, a film storage company in Burbank, California, in October 2013.[123]

Technical support and on-site service

Aside from technical phone support for its products, Kodak offers onsite service for other devices such as document scanners, data storage systems (optical, tape, and disk), printers, inkjet printing presses, microfilm/microfiche equipment, photograph kiosks, and photocopiers, for which it despatches technicians who make repairs in the field.

Other

Kodak markets Picture CDs and other photo products such as calendars, photo books and photo enlargements through retail partners such as CVS, Walmart and Target and through its Kodak Gallery online service, formerly known as Ofoto.

Former

A Kodak Instamatic 104

Still film cameras

On January 13, 2004, Kodak announced it would stop marketing traditional still film cameras (excluding disposable cameras) in the United States, Canada and Western Europe, but would continue to sell film cameras in India, Latin America, Eastern Europe and China.[10] By the end of 2005, Kodak ceased manufacturing cameras that used the Advanced Photo System. Kodak licensed the manufacture of Kodak branded cameras to Vivitar in 2005 and 2006. After 2007 Kodak did not license the manufacture of any film camera with the Kodak name.

Instant cameras

After losing a patent battle with Polaroid Corporation, Kodak left the instant camera business on January 9, 1986. The Kodak instant camera included models known as the Kodamatic and the Colorburst.

Polaroid was awarded damages in the patent trial in the amount of $909,457,567, a record at the time. (Polaroid Corp. v. Eastman Kodak Co., U.S. District Court District of Massachusetts, decided October 12, 1990, case no. 76-1634-MA. Published in the U.S. Patent Quarterly as 16 USPQ2d 1481). See also the following cases: Polaroid Corp. v. Eastman Kodak Co., 641 F.Supp. 828 [228 USPQ 305] (D. Mass. 1985), stay denied, 833 F.2d 930 [5 USPQ2d 1080] (Fed. Cir.), aff'd, 789 F.2d 1556 [229 USPQ 561] (Fed. Cir.), cert. denied, 479 U.S. 850 (1986).[124]

Kodak was the exclusive supplier of negatives for Polaroid cameras from 1963 until 1969, when Polaroid chose to manufacture its own instant film.

Image sensors

As part of its move toward higher end products, Kodak announced on September 15, 2006 that the new Leica M8 camera incorporates Kodak's KAF-10500 image sensor. This was the second recent partnership between Kodak and the German optical manufacturer. In 2011, Kodak sold its Image Sensor Solutions business to Platinum Equity, which subsequently renamed it Truesense Imaging, Inc.[125]

Digital cameras and video cameras

Main articles: Kodak DCS and Kodak EasyShare
A Kodak Easyshare Z1015 IS digital camera

Many of Kodak's early compact digital cameras were designed and built by Chinon Industries, a Japanese camera manufacturer. In 2004, Kodak Japan acquired Chinon and many of its engineers and designers joined Kodak Japan.

The Kodak DCS series of digital single-lens reflex cameras and digital camera backs were released by Kodak in the 1990s and 2000s, and discontinued in 2005. They were based on existing 35mm film SLRs from Nikon and Canon and the range included the original Kodak DCS, the first commercially available digital SLR.

In July 2006, Kodak announced that Flextronics would manufacture and help design its digital cameras.

Digital picture frames

Kodak first entered the digital picture frame market with the Kodak Smart Picture Frame in the fourth quarter of 2000. It was designed by Weave Innovations and licensed to Kodak with an exclusive relationship with Weave's StoryBox online photo network.[126] Smart Frame owners connected to the network via an analog telephone connection built into the frame. The frame could hold 36 images internally and came with a six-month free subscription to the StoryBox network.[127]

Kodak re-entered the digital photo frame market at CES in 2007 with the introduction of four new EasyShare-branded models that were available in sizes from 200 to 280 mm (7.9 to 11.0 in), included multiple memory card slots, and some of which included Wi-Fi capability to connect with the Kodak Gallery—that gallery functionality has now been compromised due to gallery policy changes (see below).

Main article: Kodak Gallery

In June 2001, Kodak purchased the photo-developing website Ofoto, later renamed Kodak Gallery. The website enables users to upload their photos into albums, publish them into prints, and create mousepads, calendars, etc. On March 1, 2012, Kodak announced that it sold Kodak Gallery to Shutterfly for $23.8 million.[128]

Document imaging

Kodak provides scanning technology. Historically this industry began when George Eastman partnered with banks to image checks in the 1920s. Through the development of microfilm technology, Eastman Kodak was able to provide long term document storage. Document imaging was one of the first imaging solutions to move to "digital imaging" technology. Kodak manufactured the first digital document scanners for high speed document imaging. Today Kodak has a full line of document scanners for banking, finance, insurance,[129] healthcare and other vertical industries. Kodak also provides associated document capture software and business process services. Eastman Kodak acquired the Bowe Bell & Howell scanner division in September 2009.

Photographic film and paper

Kodak continues to produce specialty films and film for newer and more popular consumer formats, but it has discontinued the manufacture of film in older and less popular formats.

Kodak is a leading producer of silver halide (AgX) paper used for printing from film and digital images. Minilabs located in retail stores and larger central photo lab operations (CLOs) use silver halide paper for photo printing. In 2005 Kodak announced it would stop producing black-and-white photo paper.[130]

Photo kiosks

A Kodak NexPress 2500 digital printing press

Kodak is a manufacturer of self-service photo kiosks that produce "prints in seconds" from multiple sources including digital input, scanned prints, Facebook, the Kodak Gallery and orders placed on-line using thermosublimation printers. The company has placed over 100,000 Picture Kiosks in retail locations worldwide.[131] Employing similar technology, Kodak also offers larger printing systems with additional capabilities including duplex greeting cards, large format poster printers, photobooks and calendars under the brand name "APEX".[132]

Name

1900 Kodak ad

The letter k was a favorite of Eastman's; he is quoted as saying, "it seems a strong, incisive sort of letter."[133]

He and his mother devised the name Kodak with an Anagrams set. Eastman said that there were three principal concepts he used in creating the name: it should be short, easy to pronounce, and not resemble any other name or be associated with anything else.[134]

Operations

Subsidiaries

  • Kodak Limited (UK)
    • the company's sales and marketing headquarters are located in Watford, UK, with Kodak Alaris operating in Hemel Hempstead, Hertfordshire
    • manufacturing facilities used to be sited at Harrow in north-west London (closed in 2016), Kirkby near Liverpool (closed in 2007) and Annesley in Nottinghamshire (closed in 2005).
  • FPC, Inc.
    • FPC, US/Canada
    • FPC Italy

Kodak Research Laboratories

The Kodak Research Laboratories were founded in 1912 with Kenneth Mees as the first director.[135] Principal components of the Kodak Research Laboratories were the Photographic Research Laboratories and then the Imaging Research Laboratories. Additional organizations included the Corporate Research Laboratories. Over nearly a century, scientists at these laboratories produced thousands of patents and scientific publications.[136]

Notable people

Presidents and CEOs

George Eastman
Name Title Tenure
Henry A. Strong President 1884 – July 26, 1919
George Eastman President 1921 – April 7, 1925
William G. Stuber President 1925–1934
Frank W. Lovejoy President 1934–1941
Thomas J. Hargrave President 1941–1952
Albert K. Chapman President 1952–1960
William S. Vaughn President and CEO 1960 – December 31, 1968
Louis K. Eilers President and CEO January 1, 1969 – May 17, 1972
Gerald B. Zornow President then Chairman 1970–1984
Walter A. Fallon President and CEO May 18, 1972 – 1983
Colby H. Chandler CEO May 1983 – June 1990
Kay R. Whitmore CEO June 1990 – October 27, 1993
George M. C. Fisher CEO October 28, 1993 – December 31, 1999
Daniel A. Carp CEO January 1, 2000 – May 31, 2005
Antonio M. Pérez Chairman and CEO June 1, 2005 – 2014
Jeff Clarke CEO March 12, 2014 – present

Scientists

Archive donation

In 2005, Kodak Canada donated its entire historic company archives to Ryerson University in Toronto, Ontario, Canada. The Ryerson University Library also acquired an extensive collection of materials on the history of photography from the private collection of Nicholas M. & Marilyn A. Graver of Rochester, New York.[137] The Kodak Archives, begun in 1909, contain the company's Camera Collection, historic photos, files, trade circulars, Kodak magazines, price lists, daily record books, equipment, and other ephemera. It includes the contents of the Kodak Heritage Collection Museum, a museum established in 1999 for Kodak Canada's centennial that Kodak closed in 2005 along with the company's entire 'Kodak Heights' manufacturing campus in Mount Dennis, Toronto.[138] See also: George Eastman House.

Controversies

Better Business Bureau

On March 26, 2007, the Council of Better Business Bureaus (CBBB) announced that Eastman Kodak was resigning its national membership in the wake of expulsion proceedings initiated by the CBBB board of directors.[139] In 2006, Kodak notified the BBB of Upstate New York that it would no longer accept or respond to consumer complaints submitted by them. In prior years, Kodak responded by offering consumers an adjustment or an explanation of the company’s position. The BBB file contains consumer complaints of problems with repairs of Kodak digital cameras, as well as difficulty communicating with Kodak customer service. Among other complaints, consumers say that their cameras broke and they were charged for repairs when the failure was not the result of any damage or abuse. Some say their cameras failed again after being repaired.

Kodak said its customer service and customer privacy teams concluded that 99% of all complaints forwarded by the BBB already were handled directly with the customer. Brian O’Connor, Kodak chief privacy officer, said the company was surprised by the news release distributed by the Better Business Bureau:

It is inaccurate in the facts presented as well as those the BBB chose to omit. Ironically, we ultimately decided to resign our membership because we were extremely unhappy with the customer service we received from the local office of the BBB. After years of unproductive discussions with the local office regarding their Web site postings about Kodak, which in our view were consistently inaccurate, we came to the conclusion that their process added no value to our own. Our commitment to our customers is unwavering. That will not change. What has changed is that, for us, the BBB's customer complaint process has become redundant, given the multiple and immediate ways that customers have to address their concerns directly with Kodak.[140]

Patent litigation

In 2010, Apple filed a patent-infringement claim against Kodak. On May 12, 2011, Judge Robert Rogers rejected Apple's claims that two of its digital photography patents were being violated by Kodak.[141]

On July 1, 2011, the U.S. International Trade Commission partially reversed a January decision by an administrative law judge stating that neither Apple nor Research in Motion had infringed upon Kodak's patents. The ITC remanded the matter for further proceedings before the ALJ.[142]

See also

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Bibliography

  • ACKERMAN, Carl William, George Eastman: founder of Kodak and the photography business, Beard Books, Washington, D. C., 2000.
  • BINANT, Philippe, Au coeur de la projection numérique, Actions, 29, 12-13, Kodak, Paris, 2007.
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