Kodak’s photo-sharing site was known as the Kodak Gallery, offering similar services to Shutterfly such as uploading photo galleries and printing custom created photo books and stationery. By the time of the company’s bankruptcy announcement, it had garnered more than 75 million users as the account came optionally with the purchase of Kodak digital cameras. If Shutterfly successfully wins the bid, Kodak Gallery will begin transferring customer data, including their account information and uploaded images, over to Shutterfly. Those with a Kodak Gallery account who do not wish for Shutterfly to have access to their private information can opt out of the transfer and download all their photos, videos and custom art onto their own computers or buy them in DVD format before the site deletes their account.The once-iconic company that invented the hand-held camera has said it will quit the camera business and is expected to fetch $1 billion to $2 billion from the sale of about 1,100 digital patents, which is due to get under way by June 30.
At a hearing next week on March 8, a bankruptcy judge will hear Apple's motion to move forward with its patentinfringement suit. Apple has asked the bankruptcy court to lift the automatic stay applied to pending litigation against Kodak when the company filed for Chapter 11 on Jan. 19.
As Shutterfly continues to take on the social photo service business, it will compete with other major companies such as Hewlett Packard’s Snapfish and American Greetings’ Photoworks and Webshots brands. Several other boutique printing services such as Mpix, AdoramaPix, and giant wholesale retailer Costco and its photocenter are still some of the more customer-preferred resources as they provide cheaper services than Shutterfly and Snapfish.
Shutterfly said it will transfer Kodak Gallery customer accounts and images in the United States and Canada to Shutterfly, and will allow customers to opt out of the transition if they do not want their photos to be transferred.
Eastman Kodak Co., has agreed to sell its online photoservices business to Shutterfly Inc. for $23.8 million, kicking off the bankrupt photography pioneer's relaunch as a much slimmer company, although a patent sale seen crucial to its turnaround may still be months away.